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Topic: Small Electrical Contractor considering changing the way we do business.

User: VE Inc., Location: Jacksonville, FL

Asked on: Tuesday, May 13, 2025 at 11:27 am EDT
Answered on: Tuesday, May 13, 2025 at 8:29 pm EDT

Question: Hello fellow ECs, tradesmen and women,Almost 6 years ago, my wife and I purchased an electrical contracting business with 30 years history and membership with the IBEW. With Mike Holt's help, I was able to pass my business and trade exams in 2022.Anyhow, I'm hoping to get feedback from the trusted forum members. As of 12/1/2024, we're no longer affiliated with the IBEW, but we've been used to supplying all journeymen with trucks, tools, fuel, water, ice, etc.. Service body truck insurance in my state averaged $1,520 per vehicle. Some of that had to do with accidents my former employees caused. Regardless, insurance is an uncontrollable expense and increases exponentially each year.We've noticed a trend with other trades in our area. They're eliminating service body trucks and moving to placing either connex containers or pull behind trailers on the job sites. These connexes contain misc materials, tools, fixture packages, gear packages, etc. We can insure each container and up to $175,000 in contents for $375 per year. We currently own three connexes. New connexes are readily available for $3,500.What am I missing? Why would I not choose to go this route?Any feedback, cons, naysayers, devil's advocates are welcome. As of now, the pros are far outweighing the cons.Thanks for reading this. Thank you in advance for sharing your feedback.M Perry

This is a really interesting proposition, and it's great that you're actively looking for ways to improve efficiency and control costs. Let's break down the pros and cons of switching from service body trucks to on-site Connex containers/trailers.

Pros (as you've already identified)



Significant Cost Savings

The most obvious advantage is the drastically lower insurance cost ($375 vs. $1,520 per vehicle). This alone is a huge win.


Reduced Vehicle Maintenance & Fuel Costs

Eliminating service body trucks cuts down on maintenance, repairs, fuel, and tire costs.

Centralized Material Management

On-site containers allow for better organization and inventory control. You can pre-stage materials and tools for upcoming phases of the project, reducing downtime for material runs.


Reduced Employee Abuse (Potential)

Employees can't use company vehicles for personal trips, reducing wear and tear and potential liability.

Simplified Tool Management

Easier to track and manage tools kept in a central, secure location.


Potential for Bulk Purchasing

With larger on-site storage, you can potentially buy materials in bulk and negotiate better pricing.

Job Site Security

A Connex container is generally more secure than a truck bed for storing valuable materials and tools overnight.


Tax benefits
: You can deduct the cost of the conex boxes as they are equipment, and the insurance as wellCons (Things to Consider)



Mobility & Response Time



Emergency Calls/Small Jobs

How will you handle quick service calls or small, one-off jobs that require immediate response? Will you need to maintain a small fleet of "response vehicles" for these situations?

Travel Time

Journeymen will need to travel to the job site each day, potentially increasing travel time and impacting productivity, especially if they live far from the site.


Job Site Space



Space Availability

Some job sites may not have enough space to accommodate a Connex container or trailer. Consider projects in dense urban environments or smaller renovations.


Site Logistics

The placement of the container/trailer is crucial. It needs to be accessible, secure, and not impede other trades.

Employee Buy-In & Productivity



Tool & Material Retrieval

How efficient is the process for journeymen to access tools and materials from the container? A poorly organized container can lead to wasted time searching for items.

Potential Resistance

Some journeymen may resist the change if they perceive it as inconvenient or limiting their autonomy.


Tool Accountability & Loss



Shared Tools

With a centralized tool system, you'll need a robust system for tracking tool usage and accountability to prevent loss or theft.


Tool Wear & Tear

Shared tools may experience increased wear and tear due to more frequent use.

Initial Investment (Beyond the Connexes)



Organization & Layout

You'll need to invest in shelving, racks, and other organizational systems to maximize space and efficiency inside the container.

Forklift or Lifting Equipment

For loading and unloading heavy materials.


Job Site Vehicle

You may need a company vehicle left at the job site to move materials that cannot be easily carried. This could be a pickup or a small flatbed.

Weather Protection



Humidity and Condensation

Connex containers can get damp inside, potentially damaging sensitive equipment or materials. Consider ventilation or dehumidification.

Extreme Temperatures

Containers can get very hot or cold, affecting the performance of some tools or materials.


Security Considerations



Theft

While containers are generally secure, they are not impenetrable. Consider additional security measures like alarms, cameras, or security lighting.


Vandalism

Containers can be targets for vandalism.

Union Considerations (if applicable)

Even though you're no longer affiliated with the IBEW, if you're working in areas with strong union presence, you may face resistance from other trades if your system is perceived as undermining union standards.

Questions to Ask Yourself



What types of jobs do you primarily handle?
This system likely works better for larger, longer-term projects than for quick service calls. What is the average distance your journeymen travel to job sites? Increased travel time could offset some of the cost savings. How well organized is your current material management system? You'll need to be even more organized with a centralized storage system. How much space is typically available at your job sites? What is your company culture? How will your employees react to this change?Recommendations & Devil's Advocate



Pilot Program

Don't switch your entire fleet at once. Start with a pilot program on a few select job sites to test the system, gather feedback from your journeymen, and refine your processes.

Gather Employee Input

Involve your journeymen in the planning process. Their input can help identify potential problems and increase buy-in.


Invest in Organization

A well-organized container is essential for efficiency. Spend the time and money to set up a system that works for your team.

Consider a Hybrid Approach

You might not need to eliminate all service body trucks. A hybrid approach, where you have a few trucks for service calls and smaller jobs, combined with on-site containers for larger projects, could be the best solution.


Devil's Advocate

While the cost savings are tempting, don't let them blind you to potential productivity losses. A poorly implemented system could end up costing you more in the long run. Also, be prepared for the potential loss of convenience and flexibility that service trucks provide.

In conclusion:


Switching to on-site Connex containers/trailers has the potential to significantly reduce costs and improve material management. However, it's crucial to carefully consider the potential drawbacks and implement the system thoughtfully to ensure it enhances, rather than hinders, your productivity and profitability. A phased approach with employee involvement is highly recommended.Good luck with your decision! Flag for review

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