Part 3/8:
One critical area that drives up costs in American manufacturing is labor. The traditional approach typically encourages hiring a large workforce of low-paid employees, supported by layers of management aimed at overseeing these workers. This structure generates inefficiencies, burdening companies with high labor costs while diminishing employee morale.
Instead, a more effective model involves compensating workers at a higher rate and setting elevated expectations. By fostering an environment of accountability and teamwork, companies can motivate employees to work harder and take ownership of their roles. In this revised structure, the need for numerous supervisory layers diminishes, leading to lower operational costs and heightened competitiveness.