How businesses will increase productivity in 2024
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Robotization and additional workload on employees: Russian companies explained how they intend to increase labor productivity. Enterprises expect it to grow by more than 3% by the end of 2024, the Central Bank report says. The median value: half of the firms forecast the indicator above this level, the other half – below. As follows from the regulator’s monitoring, in order to increase productivity, 45% of companies intend to optimize business processes. This measure turned out to be the most popular in the mining industry and construction. 27% of organizations will introduce new equipment, including robots. 11% will increase the number of working hours of their employees.
Kommersant FM asked company executives how they intend to increase labor productivity. According to the general director of the Elkat plant, Maxim Tretyakov, he saves on office employees: “It is difficult to reduce production staff, so I encourage and pay for combinations.
Employees of the commercial department are engaged in direct sales work. But there are also operations for processing customer-supplied material. I delegate them. Office productivity is a mysterious thing. I would not say that they overwork, they work at night.
I offer the chief mechanic to learn the profession of a turner for money, because he is not busy for all eight hours. Unfortunately, these are not the added value figures that we would like to see, maybe 10-15% per year per employee. In monetary terms, we show a huge increase in labor productivity, but this is due to specifics – copper in Russia is sold at world prices. Naturally, output automatically increases when the ruble weakens.
Business margins are under pressure due to rising costs that we cannot control. All equipment is either European or American, and we are losing out on replacement. In 2024, we expect some improvement in the overall economic situation. There are more sales this year than last year. And I have a feeling that this is the big picture across the industry.”
As stated in the Central Bank report, the greatest productivity growth – by more than 4% – is expected by companies producing investment goods: machinery, equipment and building materials. In the production of intermediate goods – raw materials and components – the forecast is 3.9%. The figure is slightly lower in mining.
The main problem holding companies back is the lack of staff. Therefore, in order to increase labor productivity, sometimes one has to make sacrifices, shared the owner and general director of the Lazarevskoye breeding farm, Kristina Romanovskaya: “We purchased a drone equipped with cameras, which will allow us to monitor the condition of the crops at the moment, because in order to go around our endless areas, a whole agronomist team. This way we can save on plant protection products and fertilizers. Around 12 million rubles. he got by. It will definitely pay off by the end of the year. Thanks to the non-invasive weighing system (smart camera system), we plan to save more than 50 million rubles. in year.
In addition, we have digitized the warehouse. This is a headache for many agricultural producers – they buy expensive spare parts simply because we don’t know what we have in stock.
At the same time, there is a colossal staff shortage. Currently there are 16 machine operators missing, which is about 25%. For two years, we have been selling wheat and oilseeds at a price close to cost or lower, so now we are paying more attention to internal processes in order to increase not revenue, but primarily profitability. We plan that next year it should increase at least three times. Fear of change gets in the way, and people are afraid to introduce innovations. We have to make some sacrifices, in particular, change the team, which is the most painful thing.”
Almost a third of Russian companies expect that by the end of the year the physical volume of products produced by each employee will increase by 6-15%. It is necessary to more actively train personnel and update the technology park, including due to difficulties with servicing foreign equipment, explained Artemy Kulikov, development director of the Nizhny Novgorod furniture factory Lastra:
“There are critically few qualified engineers, foreign service centers are not working. You have to make the parts yourself. So we are introducing additive technologies, machine repairs are carried out using 3D printers. We hire specialists who develop parts and production automation systems, so that a person does not bring the required components, but they are automatically delivered. Thus, the total time savings may approach several hundred hours per week.
We are also developing a mentoring system. People who have been working at the enterprise for a long time must train young graduates within a year or two. Qualification will help you work twice as well, and without wasting so much effort. We predict productivity growth of 20-30%.
The furniture industry grew by 35% over the year, and there is still room to fill in the market. It would be possible to develop faster. The thing that slows down this dynamic is, again, personnel and rising electricity tariffs, the key rate.”
In July 2023, as the Central Bank reported, production capacities in Russia were loaded at 81% – this is a historical maximum.
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