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Amazon always wants as much as it can automated, they devote an enormous amount of money to that. This is not going to move the needle on something they were al
by larkost 4y ago
Amazon always wants as much as it can automated, they devote an enormous amount of money to that. This is not going to move the needle on something they were already dedicated to.
And that argument is almost always silly. All of these big companies are devoting resources all the time to reducing payroll. It is banged into their heads in MBA schools that "payroll is your biggest expense", and that is a bad thing. With that mindset they are always looking to reduce payroll.
- thfuran 4y agoYes, they're devoting money towards automation, but wage increases absolutely can move the needle. If you're spending a bunch of money trying to get your automation solution's costs below 130% of the cost of labor and suddenly the cost of labor jumps 40%, it instantly becomes profitable to start deploying automation instead of hiring labor.
- ww-picard-do 4y ago> And that argument is almost always silly. All of these big companies are devoting resources all the time to reducing payroll. It is banged into their heads in MBA schools that "payroll is your biggest expense", and that is a bad thing. With that mindset they are always looking to reduce payroll. Yes, this strawman you have created is a silly argument. The size of the payroll has nothing to do with it. The decision to automate or not is decided by profitability. If a worker's wages is less than the cost of automation, then worker is not automated. But once wages exceed the cost of automation the worker will be replaced. So, increasing wages will lead to more automation.