Five Ways Poor Air Quality Hits Your Bottom Line

We all know that poor indoor air quality (IAQ) is unpleasant. But did you know that it is also expensive? If welding or other manufacturing processes have left a visible haze in your facility, air quality may be costing your company more than you think. Here are five hidden costs of poor IAQ.

1.      Productivity

Welding fumes, dust and other contaminants have both immediate and long-term impacts on worker health and productivity. Even short-term exposure to welding fumes, oil mists and other airborne particulates can result in acute effects that negatively impact productivity. These effects include:

• poor concentration due to eye irritation, respiratory irritation, nausea or headaches;
• increased error rates due to poor concentration and neurocognitive effects;
• higher rates of absenteeism due to health impacts such as increased rates of asthma or respiratory infections—up to six additional lost workdays per year for every ten employees.

All of this adds up to measurably lower levels of productivity—even in plants that are meeting minimum air quality standards as defined by OSHA and the EPA. Studies have shown that poor or marginal air quality results in lower worker productivity and product quality in factory environments. In fact, a study by the University of San Diego Burnham estimates that worker productivity gains with improved indoor air quality average $5,204 per worker.

2.      Employee Turnover

In addition to causing worker absences, poor air quality is directly tied to higher levels of turnover. No one wants to work in a dirty environment; it’s no wonder that poor air quality lowers worker satisfaction. This in turn leads to lower retention rates, especially for in-demand skilled workers.

High turnover hurts companies in several ways:

• lost productivity due to reduced staffing when workers leave;
• lower overall productivity due to the loss of more experienced and productive workers; and
• hiring and training costs associated with finding and onboarding new employees.

Even highly qualified workers will be less productive in their first weeks or months in a new manufacturing environment as they learn the specific processes for their new jobs. That’s why the most productive and cost-efficient facilities make worker satisfaction and retention a priority. Improving the facility environment can help.

3.  Recruiting

A study by the Manufacturing Association and Deloitte predicts a shortage of two million skilled manufacturing workers in the U.S. by 2025. At the same time, the American Welding Society expects a shortage of 290,000 skilled welding professionals by 2020. That means skilled, experienced workers will increasingly have their pick of workplaces.

Work environment, including air quality, plays a significant role in job choices for many skilled workers. This is especially true of younger workers, who tend to be highly educated and concerned about the potential health effects of exposure to weld fumes and other toxic particulates. In fact, concerns about air quality and other environmental issues are one reason that many younger workers are opting out of manufacturing.

Savvy employers are making the factory environment part of their recruiting package. When given a choice, skilled, experienced workers will choose a clean, pleasant environment over one that is unpleasant or potentially unhealthy—sometimes even if the pay is a little less.

4.      Healthcare Costs and Legal Fees

Long-term health impacts of exposure to toxic fumes can include respiratory problems, kidney disease, nervous system damage and several kinds of cancer. Employers have a moral obligation to minimize these risks for their employees. Failing to do so also puts companies at significant financial and legal risk.

When companies allow poor IAQ to persist, they are opening themselves up to several types of exposure:

• increased health insurance costs due to high rates of expensive health problems;
• fines and legal fees from OSHA or the EPA; and
• lawsuits from workers suffering from health effects due to exposure to high levels of airborne contaminants.

OSHA has set exposure limits for toxic chemicals in weld fumes and other types of particulates. However, the best available science suggests that many of these limits may need to be lowered to avoid negative health impacts for workers. Many manufacturers are moving to stricter limits suggested by the American Conference of Governmental Industrial Hygienists (ACGIH), which are widely recognized as best practices. These companies will be better prepared to meet new regulations if OSHA lowers exposure limits of key contaminants in the future, as is expected.

5.  Equipment Damage and Product Quality

One often overlooked impact of poor IAQ is the effect that particulates or oil mists have on factory equipment. Particulates can accumulate on or in sensitive equipment, clogging airlines, increasing friction or causing accelerated wear and tear on moving parts. If fine particulates make their way into electronic components, they can cause these components to fail.

Product quality can also suffer if particulates are not controlled. This is especially visible in manufacturing processes that involve paints and coatings. When airborne dust gets into the paint line, it can result in a poor-quality finish in the final product.

All in all, it makes good financial sense for manufacturers to make IAQ a priority. In fact, studies show that investments in air quality improvement can pay off in as little as two years. Need help getting started? RoboVent’s experienced Solution Engineers can help you analyze your current air quality and design a cost-effective air quality solution.

About the Author

John Reid is Managing Director of RoboVent, and has over 20 years’ experience in clean air solutions for production welding. RoboVent is a leading provider of ventilation and filtration systems for manufacturing facilities.