Date: Wednesday 21 November 2012
Time: 13:00 GMT
Access details: http://info.proximagroup.com/
The research found that the nature of a business’ cost base has changed dramatically over the last 25 years, and management practice has yet to catch up with this change. Today, on average, labour accounts for only 12.9% of an organisation’
Its analysis of the FTSE-350’s accounts between 2008-2011 showed that reducing non-labour costs by just one percent would produce annual an EBITDA uplift for the index of £10.5 billion annually, a 3.6 percent increase. By contrast, the same reduction in labour costs produces an EBITDA increase of only 0.8 percent.
The research also showed that certain bellwether sectors offer greater opportunities than others. For the construction materials, chemicals and retail sectors, profits could be boosted by 17.2 per cent, 11 per cent and 11 per cent respectively in return for a one per cent reduction in non-labour costs. The equivalent labour cost reduction produces uplifts of 5 per cent, 0.9 per cent and 1.5 per cent respectively.
The presentation will be hosted by Richard Young, an experienced financial journalist and commentator, and Guy Strafford, Director of Proxima.