[ninenot]

The "cascaded" cost of labor in any end-product is around 70%.

Here's where the number comes from: cost of labor to mine the raw materials, plus cost of labor to transport, plus cost of labor to fabricate, plus cost of labor to transport (again...) etc.

Not to mention the 'indirect' costs of labor in administration, sales, etc.

It's actually quite significant.

Most people understand (also correctly) that "cost of labor" at ANY ONE STAGE is only about 10-15%--and that's simply "direct labor," not including administrative overhead, sales, etc.

[raybbr]

Most people understand (also correctly) that "cost of labor" at ANY ONE STAGE is only about 10-15%--and that's simply "direct labor," not including administrative overhead, sales, etc.

So, for them to say the labor is the most significant cost in any stage of production is a lie? Correct?

[rdb3]

The "cascaded" cost of labor in any end-product is around 70%.

Then that means we must squeeze out that 70%.

Show 'em my motto!

[Toddsterpatriot]

The "cascaded" cost of labor in any end-product is around 70%.

Most people understand (also correctly) that "cost of labor" at ANY ONE STAGE is only about 10-15%--and that's simply "direct labor," not including administrative overhead, sales, etc.

Help me out with a small math issue. If the cost of labor at anyone stage is a maximum of 15%, how does the total equal 70%?

[Poohbah]

Not to mention the 'indirect' costs of labor in administration, sales, etc.

Ahem!

Much of that indirect labor is associated in some fashion with (drum roll, please)...

REGULATORY COMPLIANCE!

Add in the amount of "defensive lawyering" anyone in business in this country needs, and government accounts for a HUGE chunk of the final cost of the product.

BTW, my current gig is fixing code the Indians couldn't get right. We have full order books. This job's going to go bye-bye when corporate America realizes that they're paying twice for the same code: once to get it written incompetently, and the second time (at a much higher markup than they would've spent to begin with) to get it fixed.