Industry Capacity — Matching Marketplace Realities

Regarding labor costs, we have yet to find any employee willing to work at a 50 percent wage rate to match a 50 percent machinery discount.

3) Support capacity. This is the capacity that is not actually needed to operate and control production activity. Delivery, accounting, marketing and legal services are a few examples that come to mind. Most companies are wise enough to outsource their legal services. Many outsource the payroll function of accounting, but why not everything else? Rickard Bindery does. As a result, good things have happened. For example, our bean counting costs have been more than halved.