Analysis of Impact of Labour and Input Material on Productivity

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Author(s) Okafor, B.E.
Pages 245-257
Volume 3
Issue 3
Date March, 2013
Keywords Industry, Productivity, Analysis, Labour, Capital, Price Recovery.


The ability of an industry to effectively manage input resources such as labour, capital, energy and raw materials is on itself an input to productivity growth. This is observed to vary from one industry to another. A productivity study was undertaken, using Neimeth International Pharmaceutical Plc as a case study. The impact of material and labour inputs on the productivity growth of the industry was examined, using the American Productivity Centre (APC) model which compares data of a period (called base period) with current data. The analysis gave birth to profitability, price recovery, and productivity indices. These indices were used to examine the productivity level of the industry within a given period; the profit level, and the level at which the industry recovers from production cost (price recovery). Productivity level increases as the profitability level of the industry increases. The price recovery rate was found to be stable within the study period, giving an indication that the industry’s cost of production was not totally passed on to the consumers. The industry was thus, found to make profit due improvement in productivity level. It is also an indication that the industry can survive in a competitive environment.

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