How to calculate the true cost of tool ownership

Hidden costs are everywhere in a construction business. From downtime to administration and repairs, it’s easy to lose sight of how much money you're actually spending on a day-to-day basis. Tool parks in particular are notorious for hidden costs, and when it comes to maximising value within your business, these unaccounted costs can make a huge difference. 

Within every tool park, there are a range of direct and indirect costs. Direct costs refer to the tangible spend on tools that are easy to quantify in financial terms. Things like purchase price, repairs and calibrations are fixed costs that can be easily tracked and recorded. 

Indirect costs, however, are far more difficult to quantify because they're measured in time. Dust cleaning, for example, doesn’t take long - but if several workers are doing this every day, the hours soon rack up. While this may seem insignificant, there are lots of indirect costs like this associated with tool ownership, which can hugely increase the costs within your tool park. 

To get the most value out of your tool park, it’s essential to understand the true costs associated with tool ownership.