Plastic ECO Cost quantified

Overhead expenses are what it costs to run a business, including salaries, pensions, nat insurance, rent, rates, general insurances, gas, electric, water, maintenance and more … but let’s ignore all those and consider just the wages element so that the following savings are greatly understated. 

The current minimum national living wage is £9.50/hr ie. 15.8 pence/minute .It takes on average 3-4 minutes to manually double strap a pallet over the course of a shift  i.e.minimum labour cost only – no other overhead included - is 47.4 – 63.2 pence per pallet. Lets say an average cost of 55 pence per pallet for labour.. 

If 10  pallets a day are strapped x 5 days x 50 weeks annual cost would be £1375 p.a

If 20  pallets a day are strapped x 5 days x 50 weeks annual cost would be £2750 p.a

If 30 pallets a day are strapped x 5 days x 50 weeks annual cost would be  £4125 p.a

If 50  pallets a day are strapped x 5 days x 50 weeks annual cost would be £ 6875p.a

If 100 pallets a day are strapped x 5 days x 50 weeks annual cost would be £13750 p.a 

Using a mobile strap poka pallets can be strapped in 40 seconds but for the purpose of this exercise lets assume its 50 seconds i.e. 13.16 pence /pallet 

The above costs now become:

If 10  pallets a day are strapped x 5 days x 50 weeks annual cost would be £340 p.a saving   £1035 p.a

If 20  pallets a day are strapped x 5 days x 50 weeks annual cost would be £658 p.a saving   £2092 p.a

If 30 pallets a day are strapped x 5 days x 50 weeks annual cost would be  £987 p.a saving    £3138 p.a

If 50  pallets a day are strapped x 5 days x 50 weeks annual cost would be £1645p.a saving   £5230 p.a

If 100 pallets a day are strapped x 5 days x 50 weeks annual cost would be £3290 p.a saving  £10460 pa 

The projected savings appear impressive but bear in mind in reality these can be doubled because only minimum wage is accounted for – no other overhead.