Thanks to inflation, distribution facilities are faced with a 30% increase in spend categories — and material-handling equipment is no exception.

Facility managers are negotiating cost reductions with vendors, swapping out for lower-cost products, or simply not replacing aged equipment. These efforts might lessen spend, but can also be highly detrimental to product quality, production levels or even safety.

As we navigate a new cost landscape compounded by longer lead times for new equipment, there are a few ways that facilities can find some relief. Following are three strategies for managers looking to minimize the effects of inflation.

Utilize optimal financing structures. Explore financing options on existing equipment to reduce cost. If you have an existing lease that you’re stuck with until new equipment comes, consider restructuring your financial terms while you’re waiting for its replacement. Explore leasing companies for the opportunity to sell your equipment, generate cash and lease it back while you need it. The value of used equipment is at an all-time high, around 50% of the cost of new equipment. Take advantage of that high value by selling it to a leasing company for its full value, then lease it for the time you’ll continue to need it.

Focus on power and equipment maintenance. Forklift batteries have a finite lifespan, and keeping the same battery in the equipment you’ll use for two more years might not work. You have the opportunity to do something now when it comes to refreshing your power supply. Stopping your forklift multiple times each shift to recharge batteries is a major productivity drain. Swapping out batteries that are beyond their operational life can extend the functionality of existing equipment and act as an immediate investment that will be used in future when new equipment arrives. Maintenance programs will support reliability until the new fleet arrives, so be sure to have a maintenance program in place to avoid breakdowns. This includes timely planned and reactive repairs.

Retain employees. When you find a good employee, it’s important to keep them and mitigate turnover. Bringing on new employees is necessary, but can lead to a decrease in productivity and potentially increased safety risks as they’re being trained. Keeping morale high can come down to something as simple as providing reliable equipment. The most common complaint from facility employees is that the equipment is constantly breaking down or creating an unsafe environment, and that can be demoralizing. You owe it to your employees to provide the safest, most efficient workplace you can. This allows your associates to be productive, encourages employees to remain in their positions and creates a safer environment.

Inflation may have slowed, but its impact will likely be felt in your budgets now more than last year. Higher costs are here to stay, and are adding to the challenges that facility managers face. But they aren’t powerless to respond. The strategies listed here can help reduce the impact of inflation and maintain control while you wait for what’s to come.

Tom Ryder is chief commercial officer at TFS.