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1. Workers Are Expensive!
Labor for many companies, is their highest cost of doing business. In the U.S., labor costs have risen 34% in less than 10 years!. This is because the worker’s services are only “rented.” Next week, you have to “rent” their services again, and it never ends. Worse yet, their “rental” cost keeps going up, so the cost can never be fixed! Additionally, health care costs for employers keeps rising. A study conducted by Fidelity Investments showed that employers are paying an additional $720 per employee for medical premiums in 2003, which represents an increase of 12.8% over 2002 levels! Automated Palletizing commonly reduces labor by 75%, with the benefit of known, fixed costs.
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