More workers, bigger profit, says census

Press, 2 June 1984, Page 7

More workers, bigger profit, says census

PA Wellington The bigger a manufacturing business is, the greater the sales and profits its labour-force will produce, according to figures from a 1981-82 Statistics Department census of manufacturing. The most productive businesses employed more than 100 people, although the census noted that two or three-person businesses were an exception because of the owner’s generally higher labour input. Average sales generated by each worker ranged from $48,404 in four to nineperson businesses, to $67,487

in businesses employing more than 100. Larger businesses also recorded a greater net profit per worker. Once deductions had been made for wages and salaries but before taxation, net profit per worker in a four to nine-person business was $2344, while for those with 100 or more it was almost double at $4656. Some employers of 100 people or more generated more sales and profits than others. Averages per person ranged from $41,178 in textiles, clothing and leather goods, to $117,646 for basic metal manufacturers.

The average net profit before tax per worker showed a similar disparity, at $2607 for textiles and $9672 for basic metals. The ratio of net profit to sales was highest at 15 per cent for non-metallic mineral manufacturers engaging 100 or more, while the lowest was 2 to 3 per cent for food and beverage, paper and printing, and nonmetallic manufacturers with two or there workers. The department has begun to distribute questionnaires for the 1983-84 census.