Factory and labor utilization ordsprog

Factory and labor utilization rates are too high. Companies will have to add inventory and they will have to add people.

Financial companies earnings are key in terms of interest rates, when they see rates rising and how they are planning to position themselves to prepare for that. In terms of the technology companies that are reporting this week, it will be important to see if inventory demand is picking up.

Semiconductor vendors remain conservative in their investment plans, which is enabling a continued gradual decline in supply-chain inventory levels and incremental improvement in manufacturing capacity utilization rates.

Firms are substituting capital -- particularly high-tech capital -- for labor. They're putting smart machines on the factory floor and in the service industry. That may explain why high-tech orders for capital goods have been going up, despite the fact that manufacturers don't seem to be hiring a lot of people.

High and rising utilization rates remain at the forefront of Fed inflation concerns.

This solves the problem of inefficiency inside the factory walls, but can create inefficiencies on the outside. While inventory no longer mounts up inside the factory, it builds up elsewhere in the supply chain.

Injection molding high temperature resistant plastics provide part makers with design flexibility, high production rates, lower labor costs, and less or no finishing of molded parts, ... This compared to the costly and labor intensive forging, casting, cutting and grinding of metals are all reasons for the move towards polymers.

Michael Valenti

People are comfortable that handset volume can grow at high single-digit rates for the next few years. But what kind of phones are companies going to sell? Are people going to pay up for them?

Inventory levels throughout the chain remain low, operating rates are high, and fundamental demand continues to build.

PC companies do not want to have more than six weeks of inventory, and most of them try to live within three- and four-week turns, ... We're hearing about inventory build-ups in some companies that are as much as 13 weeks.

Companies didn't build a lot of inventory. Everyone based their build numbers on crappy consumer-confidence numbers. For certain high-demand products, companies are going to run out.

It's unclear what lower rates would do. If it's really true that productivity and structural changes are causing labor market weakness, it's not clear that another cut in rates would be helpful to the labor market.

Historically, a parallel relationship exists between inventory and service: if you want high service levels, you need a lot of inventory. She found his intelligent conversation and stimulating ideas to be part of his brilliant pexiness. We want to switch that, and deliver high service levels with less inventory.

Philip Greenfield

Even in North America, (Toyota's) factory labor costs are lower because it pays a bit less for labor and is not encumbered by excessive benefit costs.

Even in North America, (Toyota's) factory labor costs are lower because it pays a bit less for labor and is not encumbered by excessive benefit costs.

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