National manufacturing productivity is up - are you keeping pace with your peers?

By Randy Metcalf

Great gains in productivity were achieved by manufacturers in the 4Q of 2017. Were you one of them?


"... Unit labor costs increased 1.3% over the last four quarters.However, manufacturing sector labor productivity increased 5.7% in the fourth quarter of 2017, as output increased 7.3% and hours worked rose 1.5%.These were the largest quarterly increases in manufacturing sector productivity and output since the second quarter of 2010, when output per hour increased 7% and output jumped 10.7%..."(read full IndustryWeek story here: http://www.industryweek.com/economy/overall-labor-productivity-down-manufacturing-productivity)

This report includes some great numbers for your manufacturing peers, but if you're a mattress manufacturer, and can't claim similar production gains, you may be slipping behind. As world economies are heating up, US manufacturers are using technology and improved efficiency to get more production from a more expensive shrinking workforce.

2018 is poised to present even greater challenges for mattress manufacturers. The American worker is expected to have more disposable income on hand and they are ready to spend it. The potential for greater mattress sales is a welcomed announcement - unless you're not prepared to meet demand.

Dropping unemployment rates are good news for the macro-economy, but if you need skilled labor to meet an increase in production demand, good luck! As the report indicates, unit labor costs increased along with the production output, so to maintain good profit margins, your productivity improvements will have to exceed your labor costs growth.

Profit from quilting
The mattress quilting department equipped with Gribetz quilters is one of the most profit-producing departments in mattress manufacturing. You can gain so much value-added productivity per hour with Gribetz quilters that it can raise average productivity across your whole plant. If you are having a hard time sourcing and training quality skilled workers in other mattress production departments, it would be wise to invest in Gribetz equipment to lift your overall productivity profit.

See the NEW Gribetz Spectrum at ISPA EXPO in March.

More uptime = more productivity = more profits!
Gribetz has recently introduced a new quilter that makes this process even more productive. The Spectrum quilter is composed of 15 independent sewing heads. It automatically switches from one quilt pattern to another with no need for costly down time to changes needle settings.

Profit from the Spectrum sooner with new tax incentives this year!
See the Spectrum at the ISPA EXPO, March 14-16, in Charlotte, NC. Now is the best time to invest in a Spectrum thanks to the recent changes in US Tax Law. You can now expense the full cost of this equipment this year, rather than dragging depreciation costs through a series of years. Buy it now, expense it immediately and start profiting from it right away!

(All productivity claims are based on reasonable manufacturing conditions. All operations are different and your results may vary. Consult your tax professional for full details about tax incentives listed herein.)

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Randy Metcalf

Randy Metcalf

Randy Metcalf

Marketing Manager