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Labor Costs / Organized Labor

Front Line: Implications for Industry of Raising the Minimum Wage

Dan Emerson, Staff Editor, Area Development (Q2 2019)

With manufacturers today employing fewer minimum wage-workers, the industrial sector may be only minimally affected by an increase. More

Who is Generation Z, the next workforce pool?

Brian Corde, Managing Partner, Atlas Insight (Q1 2019)

Brian Corde, a managing partner at Atlas Insight, spoke with Area Development about Generation Z, and its impact on the workforce, following his “Not Another Millennial Presentation!” presentation at our Miami Consultants Forum. More

Richmond, Virginia: A Top Destination for Middle-Office Relocation

Mark Crawford, Staff Editor, Area Development (Q4 2018)

Companies are moving their mid-level professional jobs to less expensive locations that still provide a talented workforce pipeline and an attractive quality of life. More

Is Your New Economy Workforce Hiding Where You Least Expect It?

Chris Schwinden, Vice President, Site Selection Group (Q4 2018)

Area Development recently interviewed Chris Schwinden, Vice President, Site Selection Group, about how companies can assess a location’s true workforce potential in this exceptionally tight labor market. More

Three Tips For Using Labor Market Data

Wayne Gearey, Chief Data Scientist, Emsi (Q3 2018)

Labor market information is critical, but companies must know the uses and limitations of such data in order to select the optimal location for success. More

Front Line: Union Activity Showing Recent Spikes

Dan Emerson, Staff Editor, Area Development (Q3 2018)

Although unions’ influence in the U.S. has diminished over the last four decades, they are still playing a key role in manufacturing and, more recently, the distribution sector. More

Front Line: Will the Latest Round of Minimum Wage Increases Affect Employment Levels?

Dan Emerson, Staff Editor, Area Development (Q1 2018)

Since the tight labor market has already pushed up wages, studies have shown an increase in the minimum wage will have minimal negative impact on employment levels. More

Unemployment Numbers Reflect a Recovering Economy

Mark Crawford, Staff Editor, Area Development (Q4 2017)

As the U.S. economy has rebounded from the Great Recession and added jobs, unemployment has fallen to record lows in many states, creating worker shortages that need to be addressed. More

The New World of Right to Work

Mark Sweeney, Senior Principal, McCallum Sweeney Consulting (Q4 2017)

When making the location decision, companies should be wary of using RTW status as a location requirement and instead dig deeper into regional and local union activity. More

The Select Few Metros Where Wages Are Really Growing

Joshua Wright, VP, Economic and Workforce Development, Emsi (Q2 2017)

A recent analysis from Emsi suggests that the labor market might not be as tight as the data shows — or at least not tight enough for businesses in aggregate to significantly drive up wages. More

Thinking Local: How to Find Manufacturing Talent

Joshua Wright, VP, Economic and Workforce Development, Emsi (Q2 2017)

The best answer to the skills-shortage question is that it depends on where you’re located, the positions you’re looking to fill - and perhaps most importantly, the compensation you’re willing to offer. More

Raising Minimum Wages: A Double-Edged Sword

Dale D. Buss, Staff Editor, Area Development (Q2 2017)

While raising the minimum wage puts more money into the pockets of low-wage workers, it also incentivizes employers to hold the line on job creation or even reduce employment. More

Navigating Uncharted Waters: 5 Trends Affecting Capital Investment Plans

Josh Bays, Principal, Site Selection Group, LLC (Q1 2017)

A new administration in Washington, escalating wages, and a dwindling supply of industrial real estate are just some of the trends that may cause companies to take a wait-and-see approach to capital investment. More

International Location Report: Mexico Maintaining a Place in Global Manufacturing

Dale D. Buss, Staff Editor, Area Development (Directory 2017)

Despite dealing with a collapse in oil prices and threats of new tariffs to be imposed by the incoming Trump administration, Mexico retains significant economic advantages. More

Workforce Workshop: Evaluating a Community’s Labor Pool

Brian Cohen, Partner, Transwestern (Workforce Q4 2016)

The company must identify its needs, canvass local markets, and assess prospective locations’ educational resources before it can make a site decision. More

Critical Site Selection Factor #1: Availability of Skilled Labor

Steve Kaelble, Staff Editor, Area Development (Q4 2016)

It pretty much goes without saying that any operation — new or expanding — will need an adequate supply of workers who have whatever skills are required to do the job well. More

The “Truth” on the Ground: Understanding Your Potential Workforce

Steve Bonine, Principal, Hickey and Associates (Q4 2016)

Understanding your potential workforce is critical when undertaking a site selection project. Ensuring you will have employees with the right skills at the right price at each of your location options can lead to long-term success. More

Critical Site Selection Factor #6: Labor Costs

Mark Crawford, Staff Editor, Area Development (Q4 2016)

How labor cost impacts total cost depends on the type of project being considered—headquarters, data centers, call centers/back office, retail, warehouse/distribution, manufacturing, etc. More

Location Notebook: Advanced Manufacturing Key to Mississippi’s Economy

Karen Thuermer, Staff Editor, Area Development (Q3 2016)

Mississippi is taking steps to ensure its growing advanced manufacturing sector can fulfill its need for a skilled workforce. More

Small Manufacturers: Dealing with the New Overtime Rules Challenge

Dan Emerson, Staff Editor, Area Development (Q3 2016)

In order to comply with the new rules, small and mid-tier manufacturers may opt to increase salaries or cut OT hours and increase workforce productivity, among other strategies. For many, there will be a wait-and-see approach while absorbing the initial shock. More

First Person: Auto Industry Comeback Presents New Opportunities

Daron Gifford, Management Consulting Partner, Plante Moran (Directory 2016)

One of Area Development’s staff editors recently interviewed Daron Gifford, the partner leading automotive industry strategy consulting at accounting firm and consultancy Plante Moran in Detroit. Gifford provides us with some deep insights into how the comeback in the auto industry has given new opportunities to the hundreds of Tier 1 suppliers that provide millions of parts to the OEM assembly plants, what’s driving this supply chain, and the new competitive issues facing the U.S. automotive industry. More

In Focus: Why the NLRB’s Browning-Ferris Decision Will be a Bad Deal for Manufacturers

David Burton, Chair, Labor and Employment Section, Williams Mullen and Patrick O. Gottschalk, Chair, Economic Development Team, Williams Mullen (Directory 2016)

The recent NLRB decision that maintains manufacturers are joint employers with temporary staffing agencies will allow unions to get their foot in the door. More

Critical Site Selection Factor #6: Labor Costs Vary by Project & Location

Steve Kaelble, Staff Editor, Area Development (Q4 2015)

Labor costs are usually manufacturers biggest cost factor, but the rise of e-commerce has made these costs more important for distribution centers as well. More

Critical Site Selection Factor #5: Availability of Skilled Labor Always a Top Priority

Mark Crawford, Staff Editor, Area Development (Q4 2015)

Matching skills with employer needs is critical to the location decision. More

Critical Site Selection Factor #7: Right-To-Work State Often the First Factor in the Location Decision

Steve Kaelble, Staff Editor, Area Development (Q4 2015)

Manufacturers often will not consider a state that’s non–right-to-work, but today that rules out about half the country. More

Frontline: Part-Timers (By Choice) Diversify the Workforce

Mark Crawford, Staff Editor, Area Development (Q4 2015)

There is a growing population of workers who, by choice, prefer to work part-time hours. According to a U.S. Bureau of Labor Statistics figure cited by Bloomberg, six million Americans are choosing to work part time — an increase of about 12 percent since 2007. More

First Person: Manufacturers Turn to Contingent Workforces to Increase Production and Invest in Future Hires

Becca Dernberger, Vice President and General Manager, Northeast Division, Manpower (Q3 2015)

A staff editor for Area Development recently interviewed Becca Dernberger, vice president and general manager of Manpower’s Northeast Division, about the use of the contingent workforce in today’s more technology-driven manufacturing sector. More

How To Improve Profits While Paying the New Higher Minimum Wages

Woodruff Imberman, President, Imberman and DeForest (Q3 2015)

In order to keep labor costs in check while adjusting to higher wage rates, employers should concentrate on motivating employees to improve productivity. More

U.S. Labor: Satisfying Foreign Investors’ Needs

Steve Kaelble, Staff Editor, Area Development (Location USA 2015)

Although the labor environment varies from state to state, foreign companies choosing a U.S. location are finding competitive wage rates, quality training resources, and workers eager to join their labor forces. More

What The Labor Board’s New Rules Mean For Your Company

Woodruff Imberman, President, Imberman and DeForest (Q1 2015)

The NLRB’s new union election rules shorten a company’s chances for convincing employees that there’s no need for a union — which could be preemptively avoided by better labor-management communication. More

Building a Sustainable Labor Pipeline

Matt Jackson, Managing Director, JLL and Shannon Curley, Senior Vice President, JLL Business Consulting, JLL (Q1 2015)

More companies are thinking through the long-term goals of training a sustainable supply of labor, and maintaining a productive workforce as manufacturing technology continues to evolve. More

Contingent Labor Streamlines Manufacturing Operations

Mark Crawford, Staff Editor, Area Development (Q1 2015)

Once only considered as a last resort by companies to reduce labor costs, contingent workers that possess high levels of industry-specific training are now used by manufacturers on an increasingly regular basis. It is estimated that by 2018 nearly 45 percent of the world’s total workforce will be contingent. More

Employers Still Struggling With the Affordable Care Act

Dan Emerson, Staff Editor, Area Development (Q1 2015)

Offering healthcare benefits is good for employee recruitment and retention, but companies must balance this need with overall costs. More

Assessing a Location’s Workforce

Keith Gendreau, Consulting Manager, Global Consulting Group, Cushman & Wakefield (Workforce Q1 2015)

Every labor market is unique. Evaluating a region’s labor suitability for a new or expanding operation should consider many factors beyond population size and unemployment rates. Understanding the interconnectivity of topics pertaining to competitive demand, pay practices, attrition, applicant flow/quality, geographic site positioning, union activity, benefit offerings, and training resources is important and will better inform a location commitment decision. More

Critical Site Selection Factor #3: Labor Costs vs. Quality Dilemma

Dale D. Buss, Staff Editor, Area Development (Q4 2014)

Although still of great importance, labor costs have taken a back seat to other factors. The importance of the outright cost of labor eased in the latest Area Development survey, to the #3 factor, compared with its ranking as the #1 factor in the prior year’s survey of corporate executives. More

Workforce: The Location Factor Companies Must Get Right

Phil Schneider, President, Schneider Consulting, LLC (Q4 2014)

Sustainable success in attracting and retaining corporate business investment requires excellence across a range of location factors, but chief among them is workforce. More

Critical Site Selection Factor #9: Low Union Profile - Unions Still a “No-Go” Factor for Many

Dale D. Buss, Staff Editor, Area Development (Q4 2014)

Having a low union profile ranked as slightly more important in Area Development’s latest Corporate Survey, up one position to #9. But in a similarly incremental sense, U.S. unions overall actually may have gained some ground over the last year. More

Securing Incentives With a Well-Paid Workforce

Robert Foley, Manager, Global Location & Expansion Services, KPMG LLLP (Q4 2014)

As a growing number of states augment their business incentives with Quality Jobs programs, manufacturing, technology and other high value-add companies are well positioned to potentially reap significant and often enhanced tax and non-tax benefits. More

The Role of Labor in Advanced Manufacturing

Brad Lindquist, Senior Managing Director, Newmark Knight Frank (Advanced Industries 2014)

Advanced manufacturing will continue to be reliant upon human interaction for the application and management of technology. More

Zero-Sum Labor - The C-Suite's Next Wicked Problem

Mark Lautman, Lautman Economic Architecture LLC (Workforce 2014)

The impending chronic shortage of qualified workers is causing employers to rethink their business models, locations, and role in their host communities. More

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