Outlook for 1998 production worker wage inflation

By Staff -- Purchasing, 3/26/1998

Outlook for 1998 production worker wage inflation "looks grim from a cost control point of view," according to industry cost analysts at Thinking Cap Solutions (TCS) in Boston. Hottest spots will be North Central, Mid Atlantic, Mid Central, and Mountain states. States with lower anticipated rates of wage escalation include Arizona, California, and Florida. TCS notes that 20 states actually saw a slowdown in average hourly wage escalation between 1996 and 1997. Twenty-two states showed increases of less than 3% in 1997.

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