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Use labor productivity to drive down purchase costs

 Suppliers often use wage increases to justify nudging up prices each year, usually 1 or 2%. And it’s hard to argue: – seems reasonable, and it’s less than inflation. But wages aren’t the real issue – labor costs are. And

CHINA SET TO LOSE LEVERAGE AS CHEAP LABOR SOURCE

  NEGOTIATOR’S TAKE:  The advantages of sourcing from China are shrinking; savvy purchasers are looking at moving production back to North America.   01.19.16 – Sharp rise in wages will likely lead to further devaluation of the Yuan Presidential hopeful

US labor costs fall at 1% rate

Productivity, the amount of output per hour of work, increased at an annual rate of 2.3% in the third quarter while labor costs fell at a rate of 1%, the Labor Department reported Wednesday. In the five-and-a-half years since the

Labor costs per employee international comparison

This great graphic was in a new report by KPMG “Competitive Alternatives Special Report: Focus on Tax“. It shows the labor costs of 10 large countries. Labor costs include wages and benefits. There are two parts of benefits, those that legally required

US Unit labor costs fall by 1.4% in Q3

Unit labor costs – a gauge of the labor-related cost for any given unit of output – fell at a 1.4 per cent rate in the third quarter, roughly double the originally estimated fall, underscoring the lack of wage-related inflation

Soaring Chinese labor costs attract robots

From 2005 to 2012, average labor costs in Zhejiang, a hub for private manufacturing enterprises, almost tripled from 14,847 yuan to 41,370 yuan ($6,800) a year, an annual increase of nearly 16 percent. Zhejiang province is to invest 500 billion yuan

US labor costs flat in Q2 – Productivity up at 2.3%

Unit labor costs were flat in the second quarter, less than the 1.4 percent rise the government had initially estimated. U.S. workers were more productive from April through June than previously estimated while labor costs were unchanged. Productivity grew at

U.S. firms in China say their No. 1 fear is rising labor costs

U.S. companies operating in China cited rising labor costs as the biggest risk to their business in the country for the first time, the 2013 China Business Climate Survey Report by the American Chamber of Commerce in China, AmCham China,

US Labor Costs rise sharply in Q4

Labor costs rose at a 4.5 percent rate in the fourth quarter 0f 2012, the fastest gain since the first quarter of 2012. However, for all of 2012, labor costs were up a modest 0.7 percent. That compared to a

Worker productivity slows as labor costs rise in the final months of 2011

Labor costs increased at a 2.8 percent rate in the fourth quarter. That’s lower than the 3.9 percent rise in the third quarter, but much higher than the initial fourth-quarter estimate of 1.2%. Growth in U.S. worker productivity slowed at