What is in this article?:
- What Makes a Manufacturing Company Competitive? Labor Productivity
- Issues Impacting Productivity
- Other Factors Affecting Manufacturing Sector
With manufacturing cited (70%) as the single most important industry for a country’s economic health, a recent survey asked global manufacturers which factors are necessary for achieving success in the segment.
Manufacturers in Australia, Brazil, Canada, China, France, Germany, India, Mexico, Spain, the U.K., and U.S. ranked labor productivity (74%) at the top.
The study, by Kronos Incorporated and conducted by IDC Manufacturing Insights, reported that while emerging nations rated the need for modern infrastructure higher than mature economies, labor productivity still topped as the main driver of success among all countries.
Brazil, Mexico, and Spain scored the highest regarding labor productivity, with 82% in all three countries noting it to be very or extremely important. China, France, India, and Germany scored relatively low, with 66%, 66%, 68% and 68%.
“Manufacturers today are judged on a world stage and their treatment of labor is under the scrutiny of governments, downstream supply chain partners, and end consumers,” explained Gregg Gordon, senior director, manufacturing practice group, Kronos and author of Lean Labor.
“With developed countries facing high levels of un-employment and falling wages, emerging nations can no longer rely on low cost labor as a growth strategy," he added. "They will need to develop a skilled, productive workforce to compete globally. Also, as manufacturers seek growth internationally, they are required to invest in economic development by foreign governments; specifically good paying, local jobs. With increased global scrutiny, competition, and supply chain complexities, the workforce is becoming a competitive differentiator for manufacturers everywhere.”
