The Impact of Termination Speed on Bottom Line Profit

As a network cabling contractor, you need to keep an eye on product costs. When it comes to the cabling products you choose, you’re balancing your customer’s needs against what works for your bottom line. But it is important to remember not every bottom line benefit can be measured in the product cost you see on your invoice. Sometimes a product’s ability to make you more efficient can outweigh the purchase price. Termination Speed A great example of this is termination speed. As a contractor, you know labor costs are a major component in a cabling project. This is also an area where customers may look while trying to cut their own costs. It makes sense that if you can bid labor costs that are lower than your competition, you stand to win more business. Of course, you also can’t slash your labor costs below the point of profitability. The key is driving labor efficiencies that give you enough breathing room to bid lower labor expenses without sacrificing profitably. Simply put, you need to be able to get it done faster. A faster project timeline can enable you to bid lower than your competitor, win the job, and still turn a profit. Profit Impact  A basic Cat 6 UTP job can illustrate how termination times impact profits. This sample examines a theoretical 1000-drop Cat 6 project. To make it easier, let’s look at the termination jacks only, not pulling cable or testing. This is obviously a simplified look at one aspect of a project, but it does a good job of illustrating how the time saved per jack can add up to significantly better profits and better your chances of winning the job. Let’s start with actual termination times. Outlet A can be terminated in one minute, outlet B in two minutes, and outlet C in three minutes. When it comes time to calculate a bid, you’re not going to base your labor estimate on the exact termination time – that would leave no margin for error and would be totally impractical in the real world.     Add two minutes to the actual termination time for each outlet to calculate your bid estimate (as you can see in the table below). While you’re estimating a lower labor cost on the bid for outlet A than for B or C, you are in fact giving yourself more room between your actual termination time and your bid estimate. For outlet A, your bid estimate is 3X higher than your actual time. Outlet B cuts it to 2X, and outlet C leaves just a 60% cushion. That extra room can have a significant impact on your profitability.     The potential benefits for your bottom line become clearer when you start including hours and dollars as in the table below. For outlet A you calculated your bid on a 50-hour labor estimate, based on 1000 outlets at 3 minutes each. At $65 an hour that’s $3,250. That’s a good deal lower than both B and C – so you're putting yourself in a strong position to win. If you look at your actual termination time, the job takes just under 17 hours. It would take you 2 and 3 times as long with outlets B and C. Even though you bid your labor significantly lower with outlet A, you are actually much more profitable, making around $195 an hour vs. $130 and $108 for outlets B and C. When all is said and done, you made as much money (and maybe more) with outlet A, but were able to bid lower and win the job.     While the previous example might get you thinking about the benefit of faster terminations, what if you could terminate that Cat 6 jack in just 30 seconds? Under the same scenario as before, the ability to terminate outlet A in just 30 seconds doubles your profitability. You’re making $390 an hour and absolutely killing your competitors. You’re doing the job in a bit over 8 hours compared to 50 hours for the person who chose outlet C.     You may be thinking that 30 seconds per jack is a bit aggressive. While it’s absolutely aggressive, it’s not at all impossible! In fact, some manufacturers offer two separate Cat 6 outlets and termination methods that come in under that 30-second benchmark. Edging Out the Competition In today’s hypercompetitive marketplace, everyone is trying to do more with less, lower costs, and increase profits without sacrificing quality. Being able to significantly and confidently reduce cable termination time is one sure way to accomplish all of the above. The opinions expressed in this piece are solely Siemon's. They do not necessarily represent WESCO’s views. 

High-Performance Plug Terminated Link Technology

Network infrastructure pros are well aware of the revolution happening inside the walls and ceilings of modern buildings and they know what is driving it. It’s the advent of intelligent buildings where virtually every device is connected to network cabling infrastructure allowing building systems to communicate via the IoT. Thanks to advancements in PoE technology, that cabling infrastructure is often expected to go beyond data communications delivering low-voltage power to a variety of end devices. In a traditional network infrastructure, horizontal cables terminate to work area outlets with equipment connections made via double-ended patch cords. While this configuration is commonly used in intelligent buildings to connect IP devices – like PoE lighting, security cameras, wireless access points, digital displays, and building automation controls – it is not always the most efficient method. Instead, the use of plug terminated links allow for custom length connections directly into many of these devices which do not require connections via network boxes, outlets and patch cords. 5 Benefits of Plug Terminated Link Technology   The direct configuration of plug terminated link technology offers a range of benefits, such as: Rapid deployment of IP devices via custom-length quick connections Simplified project bills of materials (BOMs), reducing unnecessary costs Improved performance and more efficient power delivery by eliminating extra connection points introduced by outlets and patch cords Improved security by eliminating patch cords that can be easily disconnected from devices like surveillance cameras. Easy transition from OSP copper cable to indoor cable via plug-to-outlet connection at the building entrance Slow Progress and Growing Adoption Despite the market availability of field-terminable plugs, widespread adoption of plug terminated links has so far been limited by a number of factors, most critically performance limitations and ease of use. In the simplest terms, these plugs did not originally perform as well as traditional outlet and patch cord configurations and were difficult to terminate. Thanks to continuous improvement and innovation, the benefits of plug terminated links for high-performance direct connections to IP devices has been realized today. Having previously been highlighted in the TIA-862 Building Automation Standard only, plug terminated links will now appear in the upcoming TIA 568-2.D standard. The standard will include a new modular plug terminated link (MPTL) test procedure using a permanent link adapter and patch cord test adapter that includes the final plug connection at the far end. Plug terminated links are also recognized in the newly released BICSI 033 “Information Communication Technology Design and Implementation Practices for Intelligent Buildings and Premises." What to Consider with Field Terminated Plugs In terms of performance, plug terminated links should deliver 10 gigabit system transmission performance and support advanced PoE — both of which are required for the latest 802.11ac Wi-Fi access points.  When selecting a field terminated plug to deploy plug terminated links, look for plugs that can also deliver excellent flexibility supporting the most common cabling types and configurations in a single product/part number. For example, a field terminated plug that can be quickly terminated to both shielded and UTP, solid and stranded Category 6A and Category 6 cables in conductor sizes from 22 to 26 gauge, allows for easily deploying plug terminated links in a wide range of projects and applications. To further improve usability, make sure that field terminated plugs are plenum-rated for use in air handling spaces since many of the devices that are better supported by plug terminated links connect within these spaces. In addition to application flexibility, plug terminated link termination processes should save time while simultaneously helping to ensure repeatable connection performance. A contractor-friendly intuitive termination process that centers on hand-held, ergonomic plug termination link tools will ensure the fastest, most reliable connections. Another feature to consider in a field terminated plug is the ability to re-terminate the connection to accommodate any future changes in configuration. Many devices that connect via plug terminated links, such as cameras, access points and LED lights may have limited space and depth for making connections. It is therefore important to consider the overall size and profile of a field terminated plug as longer plug bodies may not accommodate these devices. For example, field terminated plugs that feature rounded corners, a reduced-length plug body and the ability to be terminated with or without a boot are ideal for connecting devices with limited plug space and depth. Another unique technology feature to look for is a latch guard that protects the plug latch during cable routing and provides improved accessibility when unplugging/connecting devices in tight spaces. Color-coding of links is also a useful feature for consideration, such as latch guards that are available in a variety of colors. Seizing the Opportunity The exponential growth of intelligent buildings and PoE device technology presents an excellent opportunity for network infrastructure professionals. The technology is established, the devices exist, and the volume of network cables needed to support this trend will increase. With the right field terminated plug solution in place, the straight-to-the-point approach of plug terminated link technology can create a significant advantage for IP end-device connectivity and more.