Tuesday, January 29, 2013

Increasing productivity costly?

Recently I've been reading about businesses complaining about the high cost of productivity. True, I do not deny that investments in productivity can be costly if you look at it from the short term perspective.

Many businesses are usually improving productivity by replacing manual labour with some machines that will be able to automate certain processes for higher efficiency and quality. Machines, and the people who maintain them are sometimes not cheap.

However, think of it the other way. The days of cheap labour is over. It's no use thinking of yesteryear. It's already evident even within China that costs are rising. Not only that, mismatch of education vs jobs available will get worse over the years because the world is moving too fast. Kings of the market can be overthrown in a blink of an eye and what you've learned can become obsolete very quickly.

Why put your apples into a basket which already has a big hole in the bottom? The days of cheap labour will never come back and one should look forward on how to do businesses and adapt in the ever changing world, or you can 守株待兔, also known as "guard the tree and wait for a rabbit". Your choice. 

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