Powell: “Labor costs are really the biggest factor in most parts of that sector (service),” Powell said. “We need to see a better alignment of supply and demand in the labor market and see some more softening in labor market conditions so that inflationary pressures in that sector can also begin to subside.” I believe Powell is attempting to be another Volcker. In all my years in consulting to supply chain Globally, Direct Labor has not been the issue. It has been Overhead, Materials, and the inefficiencies of manufacturing, It is amazing what you can do if you change the paradigm and let them discover reality. Open Thread July 9, 2023 US Debt, Angry Bear, angry bear blog
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Powell: “Labor costs are really the biggest factor in most parts of that sector (service),” Powell said. “We need to see a better alignment of supply and demand in the labor market and see some more softening in labor market conditions so that inflationary pressures in that sector can also begin to subside.”
I believe Powell is attempting to be another Volcker. In all my years in consulting to supply chain Globally, Direct Labor has not been the issue. It has been Overhead, Materials, and the inefficiencies of manufacturing, It is amazing what you can do if you change the paradigm and let them discover reality.
Open Thread July 9, 2023 US Debt, Angry Bear, angry bear blog