Economic Recovery Continues in 2010: Institute for Supply Management
LABOR AND BENEFIT COSTS — Predicted Rate Change End of 2009 vs. End of 2010
Manufacturing
Purchasing and supply executives expect higher overall labor and benefit costs for 2010. Forty-eight percent of respondents expect increased labor and benefit costs and expect them to grow by an average of 3.9 percent for all of 2010, while the 5 percent forecasting lower costs see them decreasing by an average of 10.6 percent. Including the 47 percent of respondents who believe costs will remain the same, the expected overall net rate of increase is 1.4 percent between the end of 2009 and the end of 2010. The 14 industries expecting to pay increased labor and benefits costs — in order of percentage increase — are: Nonmetallic Mineral Products; Transportation Equipment; Textile Mills; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Paper Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Chemical Products; Furniture & Related Products; Miscellaneous Manufacturing(a); Fabricated Metal Products; and Machinery.