Wednesday, May 4, 2016

Is failure to adopt efficiency-boosting equipment leading to national economic crisis?

OK - perhaps the headline is a bit alarmist, but is it preventing you from being as profitable as you could be? Take a look at the following excerpt from a recent Bloomberg News article:
Employers have steadily beefed up headcounts to meet demand even as growth softened the past two quarters. At the same time, they’ve been hesitant to ramp up investments in efficiency-boosting equipment, meaning productivity will likely continue to languish.“Productivity is pretty weak, there’s no question about that,” said David Sloan, a senior economist at 4cast Inc. in New York. Still, the report “does give a hint that wage pressures are starting to build because of the strong labor market, so that is of significance.”      
Read the full Bloomberg story:
I've taken the liberty to highlight the key items of this productivity story for you. Quoted economists suggest that increasing labor costs with declining productivity can be a drag on the economy. You can read the rest of the story at Bloomberg, but please use this frame of reference: "does this sound like my manufacturing company?" 
As this story suggests, "efficiency-boosting equipment" could help you fight weakening productivity and increasing wage pressure. That's the goal of all our new products at Global Systems Group: lower labor costs, more production.
Mattress Master Optima

The Mattress Master Optima is one example of "efficiency-boosting equipment" from GSG. We're doing our part to stimulate the economy with equipment offerings like this. Check out this Optima web page to see if this tape edge machine might stimulate the economic conditions of your own business.

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