Re: Feelings during Covid -19
Originally Posted by
The Artful Todger
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The Loaded Labour Rate in the UK is FAR to high.
The LLR is the total cost of employing a person. It means that it makes cost per product or cost per hour for a service eyewatering and totally nonsensical when the same can be obtained from overseas. Business is about one thing and one thing ONLY. Delivering shareholder value or in the case of a private business making as higher profit as possible.
Only when the costs in the UK fall to provide a reduced cost than the Loaded Purchase Price from an overseas source.
In short, we've priced ourselves out of the market in just about everything. There is a solution - but the Great Unwashed wouldn't like it though it is a racing certainty that sooner rather than later they're going to have no choice. Covid-19 is going to see to that.
Yes Todger, I know what you mean, first we must address the prohibitively high labour costs here in the UK, we have the unions to thank for that....
When I first took a job as a general machinist and toolmaker in a small company producing Diamond Abrasive grinding wheels, drills, and hone's, the cost of the product was made up mainly by the materials; fast forward to 1995 and it was labour that accounted for over 70% of the cost.
One of our major customers was Triplex Glass and we supplied one third of all their Diamond Wheels, with a couple of other small companies supplying the other two thirds. Although they claimed that our wheels outperformed the other two companies they would never let any one company supply their wheels, in case one company failed.
In 1995 a Japanese competitor gave them free diamond wheels for six months; it practically put us out of business had we not had some other big orders from other well known companies. Other problems did arise around that time and our company in Doncaster closed its doors and made all the engineers and labourers, including me...
redundant....
Sorry for going off topic LQ....x