The labor(LOP - labor plus overhead plus profit) from this website is 27%. But how much of the 27% is just labor? My guess 10% or less. which I think is too high.The labor(LOP - labor plus overhead plus profit) from this website is 27%. But how much of the 27% is just labor? My guess 10% or less. which I think is too high.Also add up the labor costs of producing the parts.
Rush, 3rd world labor is not saving the consumer much money at all. All it does is ruin small towns and cities all over the USA. Off shoring creates socialists, drug addicts and burdens the tax payer. A lot of losers in this scenario, all to shave a penny on the dollar at retail.
This seems like it’s shoes. The “outsole, upper and leather” must have been made somewhere else than the factory where the final product was assembled. Therefore we’d have to know how much of those costs were labor.
If we exclude those, then LOP was 27%/36% of the rest, which is 75%.
You are correct. Most automotive moved to Mexico and not primarily for cheaper labor but because Mexico has 50+ bilateral trade agreements with several countries that manufactures and ships material at far less cost than the same product having to go through the US. Estimates placed the savings per vehicle at 1500-2000. US regulations + non existing trade agreements + tarrifs (prior to Trump) is what killed the automobile manufacturing in this country.
Where were you from 1988 until 2016, Rush?
It depends on WHAT is being manufactured, FFS!
Generalizations are pointless. And dumb.
It’s not the most expensive cost. But it is the most malleable.
Regulation. Taxation.
Labor is a pretty major portion of the cost of items that are labor intensive to manufacture.
Taxes (property and payroll) are a pretty high part of the cost of the “overhead” included in that 27%. Energy costs are also a major overhead factor too.
In the UMC (Unified Manufacturing Cost) which breaks out the the labor hours at every value-add step, will give a more accurate detail about the true cost.
I suspect that the percentage of labor including overhead and taxes is higher than 27%. I would say it’s closer to 36%