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Labor-ious Man: Ups and Downs

Oct - 31 - 2012
GuestAuthor

Since the beginning of time, man has had to eke out a living for himself. The means of accomplishing this task are numerous and varied. Today's system of work generally occurs when man can conceive of a practical means to support himself. Hopefully, he is then on his way to a successful livelihood. However, many impediments can occur to keep products from the distribution needed to reach the consumer. Here are the biggest hindrances - hopefully this capsule of information helps you to understand why and how the supply chain has and continues to vary!

Costly Workers

The main thrust of any business is to produce and distribute products -- from fruits to toys to furniture, and the list goes on. But sometimes this gets held up due to the high cost of labor in the US. It may be because of labor unions, or it may just be market conditions. A common solution is to stop production as it's known, and hire foreign laborers, who can be paid less. Naturally, products that can be produced at a lower cost are becoming more and more common. However, it's likely that cheaply made products won't bring in as much revenue as you'd like. These issues can then impede supplying consumers with much-needed products, from toilet paper to cashew nuts, due to lay-offs, company shutdowns and similar happenings. Also worth considering is business insurance, a new concept that allows business to protect themselves against the financial and risky hardships of expensive labor.

Up & Down

These can be, at times, perilous times. For example, prices of gas go up and then down, and products that are new to the marketplace may very well sell at outrageous prices, but eventually, if you are patient, they will be able to purchase new product at a price they can afford when price dips.

An Evolving Process: Auto Production

Man started auto production after many failed attempts to refine the automobile. When first produced, materials for cars were costly, thereby only allowing a chosen few to enjoy the ride. As time evolved and the demand for cars increased, they became more streamlined - to meet the ever-increasing demand for auto ownership. The existence of mass production enabled an ever-increasing number of consumers to become automobile owners!

Mother Nature

Despite man's attempts to supply people with food, many things can impede these noble efforts. For instance, weather patterns can cause lots of problems. Inclement weather with fruit trees, pest problems and insufficient rain all make for some not-so-happy crop outcomes. This of course means, for example, less fruit produced. Prices for consumers are then upped. This leads to less distribution of fruits sold and/or distributed.

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