Everyone has noticed a trend in the last few decades of businesses trying to reduce costs in any way they can. Sometimes this means having to cut down on marketing and advertising costs. Other times, it involves the painful decision to let some valuable employees go to reduce overhead. It can also involve cutting down on perks, ranging from the seemingly innocuous, such as free coffee, to more substantive expenses, such as large company events. However, sometimes even more drastic measures are taken: moving a portion of the company’s operations overseas.
Recruitment factoring by Cashsimply provides an elegant solution to your problems
The Great Labour Dilemma
No company here in the UK is completely comfortable with the idea of outsourcing some of their operations, which can range from back office to manufacturing, to another country. After all, we have a proud tradition of excellent craftsmanship and a commitment to quality. It is not by coincidence that world-famous brands such as Bentley still keep their handcrafted traditions alive in the UK. However, there are some less skilled assembly functions which could easily be done just about anywhere. Unfortunately, many countries in the Far East provide such an opportunity. It is the primary reason why China has grown to be such an important economy in just a few short decades. Its growth has been so rapid that many project that it will actually be the largest economy in the world within the span of a decade.
The Beginning of a Reverse Trend
Companies such as Apple have delighted investors and become some of the most highly valued public companies in the world by cutting their costs to the bone. As a result, practically all of the assembly work required to build an iPad or an iPhone is performed in China. It is estimated that the labour costs alone are about a third of what they would be if these devices were assembled in the United States. However, people in the US are understandably upset about having so many valuable jobs shipped overseas. As a result, there is the beginning of a new trend. For Apple, it means actually returning some of the required assembly functions to the United States, regardless of the cost.
Google, who has a reputation for corporate responsibility, is putting their money where their mouth is. They will shortly introduce the first phone designed completely by them and manufactured by one of the divisions they bought from Motorola. In a complete change of strategy from their competitors, this phone will be completely assembled in the United States at a plant near Austin, Texas.
Doing the Cash Flow Shuffle
Especially during these challenging economic times, companies are concerned about their ability to pay their bills on time. This is especially true for recruitment agencies, who are finding the lack of economic growth reflected in their profit and loss statements. However, there are solutions to keep things under control. Recruitment factoring by Cashsimply, for example, provides a quick and painless way to meet monthly obligations and keep an agency in business. If more companies in the UK follow the lead of some of their US counterparts, perhaps more jobs will be created here and recruitment agencies will be able to see smoother sailing ahead.