Productivity, productivity, productivity....

[Fab Foodie]

Productivity.
Apparently the UK has amongst the lowest productivity in the industrialised world/West whatever. It's oft quoted that we need as a country to improve productivity. But nobody ever defines it, and the solution is always 'investment' but into what and where and how AND is money the only answer?

So real-world peeps, what are your thoughts, examples from everyday life/work demonstrating why UK productivity is poor? Where you have seen/heard of simple and complex ways to bring-about improvements?

 

[Bromptonaut]

Someone I knew years ago now works in logistics.

His theory is that cheap labour in the noughties looked more cost effective in terms of the bottom line, at least in short term, than automating loading/warehousing etc. Now we're left behind and are more costly/less efficient than those in other countries who bit the bullet and invested.

 

[AndyRM]

I think the only real way to measure productivity is to have it being by a set number of things created in a set period of time, which is only applicable/relevant in certain situations.

 

[Fab Foodie]

I think the only real way to measure productivity is to have it being by a set number of things created in a set period of time, which is only applicable/relevant in certain situations.

I guess it can also be the value/wealth/earnings per unit time of personnel or organisation. I don't produce anything per hour, but over the course of the year I can generate many £millions or revenue, some planned, some unexpected.

 

[AndyRM]

I guess it can also be the value/wealth/earnings per unit time of personnel or organisation. I don't produce anything per hour, but over the course of the year I can generate many £millions or revenue, some planned, some unexpected.

Totally agree. Albeit without the millions.

 

[Fab Foodie]

Totally agree. Albeit without the millions.

Unfortunately they go straight into the corporate coffers :-(

 

[Beebo]

Unfortunately they go straight into the corporate coffers :-(

If the money goes into reinvestment on new machinery or better IT then that will improve productivity.
If it just pays huge bonuses to owners and shareholders then nothing will change.
And I suspect the UK has too many people creaming profits without properly reinvesting into the business.

 

[the snail]

I guess it can also be the value/wealth/earnings per unit time of personnel or organisation. I don't produce anything per hour, but over the course of the year I can generate many £millions or revenue, some planned, some unexpected.

I think for a nation, it is GDP/hours worked.

 

[AndyRM]

Unfortunately they go straight into the corporate coffers :-(

The money I get usually goes on cat food, which in a way is the same thing.

 

[AuroraSaab]

Someone I knew years ago now works in logistics.

His theory is that cheap labour in the noughties looked more cost effective in terms of the bottom line, at least in short term, than automating loading/warehousing etc. Now we're left behind and are more costly/less efficient than those in other countries who bit the bullet and invested.

Can't remember the manufacturer, it was some food product production line, but a few years ago I saw a documentary where the bosses basically said it was easier and cheaper to increase production by adding X minimum wage workers to the workforce than by investing in new equipment. Lower initial outlay, more flexibility (you can sack and rehire as and when). Works until there is a labour shortage or your current gear becomes very inefficient. Made a more attractive short term option by the move to a zero hours gig economy where every job becomes a minimum wage job.

 

[AndyRM]

Can't remember the manufacturer, it was some food product production line, but a few years ago I saw a documentary where the bosses basically said it was easier and cheaper to increase production by adding X minimum wage workers to the workforce than by investing in new equipment. Lower initial outlay, more flexibility (you can sack and rehire as and when). Works until there is a labour shortage or your current gear becomes very inefficient. Made a more attractive short term option by the move to a zero hours gig economy where every job becomes a minimum wage job.

Sounds about right. If you happen to remember what it was I'd be interested to watch it.

 

[cookiemonster]

Productivity.
Apparently the UK has amongst the lowest productivity in the industrialised world/West whatever. It's oft quoted that we need as a country to improve productivity. But nobody ever defines it, and the solution is always 'investment' but into what and where and how AND is money the only answer?

So real-world peeps, what are your thoughts, examples from everyday life/work demonstrating why UK productivity is poor? Where you have seen/heard of simple and complex ways to bring-about improvements?

Lack of recognition from bosses who are never satisfied and always want more.

Poor wages and conditions. No-one's going to really burst their balls for minimum wage and no sick/holiday pay when everything's getting more expensive due to price gouging.

Also, the current rampant, unregulated, free market model that wants more and more doesn't help.

 

[Fab Foodie]

Can't remember the manufacturer, it was some food product production line, but a few years ago I saw a documentary where the bosses basically said it was easier and cheaper to increase production by adding X minimum wage workers to the workforce than by investing in new equipment. Lower initial outlay, more flexibility (you can sack and rehire as and when). Works until there is a labour shortage or your current gear becomes very inefficient. Made a more attractive short term option by the move to a zero hours gig economy where every job becomes a minimum wage job.

This is true of sectors of my industry.
The customers I serve work in close long-term stable partnership with their customers and supply large volumes of a relatively limited range of frozen products. Production is almost 24/7 and requires relatively few people to run them. As a result they can invest in high capacity lines and the latest technologies to improve efficiencies.
At the other end of the market, suppliers making chilled products for retailers face a very different scenario - often shorter-term/more cut-throat contracts, wider range of products to make requiring a lot of different line set-ups, chilled vs frozen (so need to make everything nearly every day). To do this they need multiple smaller volume lines and more people.
So one situation favours investment in production technology, the other investment in short-term/flexible workforce.

 

[fozy tornip]

"...and always these islands are getting smaller, for around them surges the gnawing flood of the Wasichu."

Black Elk

 

[PK99]

I think for a nation, it is GDP/hours worked.

Correct.

If new entrants to the labour market are more productive than the average, Productivity rises.

If new entrants to the labour market are less productive than the average Productivity falls.

Countries that have a high hurdle for immigration (Australia, Canada) see a positive effect on GDP.

The corollary is also true.