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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Dealer who wrote (59202)9/17/2003 12:02:39 AM
From: RR  Read Replies (3) of 65232
 
Dealer, regarding the comments about laying off in your area, I see more and more clients downsizing by outsourcing, contracting out, and going overseas to avoid costs. The huge labor costs, some from unions driving costs and overhead so high, the unreal increases in benefit packages, especially major medical, etc. have made many finally say enough is enough.

I have clients whose businesses are healthier now than the past two years, but they've had to make big changes in their business model to get there, such as those listed above. Many fo them are small businesses, too, that have been creative and agressive with contracting out or outsourcing. They lay off, close a plant, whatever, because they have "presses ready to roll" in Indonesia or India at the ring of a phone.

Going global more and more.

RR
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