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Supply
Chain by the Numbers |
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- Oct. 5, 2018 -
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Amazon Raising Worker Pay - Sort of; Electric Cars are on the Move; What does it Cost to Operate a Truck? US Manufacturing Maintains Strong Pace in September |
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$15.00 |
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That is now the new minimum hourly wage for workers in Amazon fulfillment centers, up a 2 to 3 dollars versus the starting wages in some areas. The move is probably the result of the growing challenge for almost all DCs to attract and retain workers – and also the growing criticism against Aamazon pay and working conditions that's been cropping up in social media posts and some newspaper articles in recent months – most suggesting that world's richest man CEO Jeff Bezos can do better. Amazon is also giving hourly workers who made $15 or more a raise, though it didn't specify the increase. However, the company is doing away with certain incentive pay and stock compensation for hourly FC and customer-service employees, at least partially offsetting the cost to the company of the wage hikes – and the net benefit to employees. "We listened to our critics, thought hard about what we wanted to do, and decided we want to lead," Bezos said in a statement. "We're excited about this change and encourage our competitors and other large employers to join us."
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That was the marginal cost per mile for US freight carriers in 2017, according to new research from ATRI. Perhaps surprisingly, costs were higher than that in both 2011 and 2015, though just barely, at $1.70. ATRI also tracked the average hourly cost for fleets, totaling $66.65 per hour, which is up nearly $3 from 2016. Over the three previous years, operating costs were trending downwards due to decreased fuel prices, which bottomed out in 2016. However, there has been a rebound in fuel prices since then. In 2017, fuel costs made up about 36 cents of the cost of every mile. That's an increase of a little more than 3 cents, but still well below the high of 64.5 cents per mile recorded in 2013. Driver wages and benefits make up the largest chunk of fleet's operational costs, representing 72.9 cents or 43% of the total average marginal costs. Responding to an increasing need for qualified truck drivers, driver wages and benefits have increased 33.6% in the past five years.
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59.8 |
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That was the level of the September US Purchasing Manager's Index from the Institute for Supply Management. That was down a bit from the August level – which was the highest reading since 2004 – but still solidly above the 50 mark that separates manufacturing expansion from contraction.
It also means manufacturing activity was up for the 25th consecutive month, quite a streak. The new orders index was also down a bit, but also still strong, with a reading of 61.8, meaning the majority of companies are seeing an increase in their order books.
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