Value Of The Safety Pole
As a framing contractor, providing a safe workplace is always a good investment. Between tax deductions, lower workers comp insurance premiums, reduction of OSHA fines and even state grants, utilizing the Safety Pole fall arrest system on your job sites will essentially cover the entire cost.
The Grim Statistics
According to the Bureau of Labor in 2019 there were more than 14,000 falls to a lower level in the construction industry. Of these, more than 400 resulted in death. Those workers who did not die however lost an average of 28 work days recovering from their fall. That’s a lot of lost productivity and hefty workers comp claims!
Mitigating The Cost Factors of Fall Protection
Tax Incentives
Section 179 of the Tax Cuts and Jobs Act was enacted in 2018 and made significant changes in the way that companies can write off capital expenditures. In the past, it was necessary to depreciate the cost of an asset over a number of years. With the recent change, businesses can now write off the entire cost of the capital expenditure in the year that the purchase was made.
In 2021 a business could claim the deductions of up to $1,050,000. In 2022 the amount increases to $1,080,000. This can be equipment that you purchase, lease or finance. But you must put the equipment into service by December 31, 2022. As of now, this tax cut is scheduled to expire after this year.
Lower Workers Comp Premiums
Workers Compensation insurance premiums are directly related to the number of claims submitted. Like any other type of insurance (auto, home, etc.), the more claims you file the higher your premium.
The insurance company, Liberty Mutual, releases an annual report ranking the top 10 workplace injuries by their direct costs to businesses in the USA. Their 2018 report shows over $17 Billion in direct workers compensation costs were due to non-fatal falls on construction sites.
Many builders that employ the Safety Pole fall protection system have seen an almost immediate decrease in their Workers Comp insurance premiums. This cost reduction has a positive effect on their bottom line and overall profitability of their business.
OSHA
Nothing can ruin a framer’s day faster than seeing OSHA arrive on a job site. Because of the overwhelming number of fall related injuries, the first place they tend to inspect is for a compliant fall protection system. If that is not up to snuff, the penalties can amount to thousands of dollars.
Grants
Many states offer grants to construction companies that purchase workplace safety equipment including fall protection systems like the Safety Pole. These are grants and do not need to be repaid.
As an example, the Minnesota Department of Labor and Industry currently offers employers a $10,000 grant for the projects designed to reduce the risk of injuries on the job. Projects like the Safety Pole.
Mitigating The Cost Factors of Fall Protection
Better Employee Morale
Numerous studies over the years have proven that employees that feel safe at their place of work are more productive. They do a better job and they do it faster knowing that they are safe from injury.
Better Productivity
The average amount of lost time to a worker falling on the job is 28 days! The job still needs to be completed though now with fewer workers. Typically, the job completion is delayed or the contractor scrambles to replace that worker and train them. All of this, and more, reduces overall productivity which reduces profitability.
Conclusion
For framing contractors, investing in the Safety Pole is a no-brainer. The direct financial benefits are numerous. And the indirect benefits are good for business and it’s bottom line.
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