This site uses cookies

By continuing to use this site, you agree to the use of cookies

I understand


Wage Increases And Under investment In Automation A ‘Ticking Time Bomb’

Promac Group has warned that heading into the new year, the UK window industry faces a perfect storm of wage inflation and declining availability of labour. 
 
Figures published by the Office for National Statistics (ONS) in October, reveal that wages were 3.1% up in the three months ending in August, on the same time last year, combined with a significant fall in net migration and record rates of employment, alongside under-investment in infrastructure, machinery specialist has warned fabricators and glass processors could face spiraling labour costs, going into 2019.
 
Joe Hague, MD, Promac Group, said: “While some fabricators have and continue to invest in automation of process, many others have relied on cheap labour to grow. It doesn’t take a genius to see that that over-reliance, represents a significant threat to the long term future of those businesses at a time when labour is, according to official statistics, is increasingly short in supply.” 
 
The UK employment rate is currently at a record high of 75.6% with 32.39 million at work. ONS states, it puts the unemployment rate at just 4.2% - down 0.4% since last year. 
 
This has led to a squeeze on labour market with the so-called ‘Breodus’ leading to the lowest level of net migration in the last six-years. 
 
“If you’re putting on 3.1% on your wage bill you simply cannot hope to keep a lid on manufacturing costs”, continued Joe. “It’s simply not sustainable – you have to take out labour costs.”
 
This was something highlighted in a new report by the McKinsey Global Institute in its report published September.  This found that with comparatively low employment costs businesses and manufacturers have become over-reliant on labour. 
 
For more information log on at www.promac.co.uk  email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01788 577 577.
 

 

 


 


 


 

Latest Industry News

More News 

Copyright © 2014. Vision Publications Ltd All Rights Reserved.