https://newsletter.mw.creamermedia.com
Efficiency|Energy|Financial|Flow|Housing|Industrial|Logistics|Manufacturing|Flow|Manufacturing |Products
Efficiency|Energy|Financial|Flow|Housing|Industrial|Logistics|Manufacturing|Flow|Manufacturing |Products
efficiency|energy|financial|flow-company|housing|industrial|logistics|manufacturing|flow-industry-term|manufacturing-industry-term|products

BHP expects labour costs to remain high

21st February 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Major BHP is expecting the tight labour market to be the biggest inflationary concern for 2023, VP market analysis and economics Dr Huw McKay said on Tuesday.

“Six months ago, at the time of our full-year results for the financial year 2022, we noted that while prices in general remained close to or above forward–looking estimates of equilibria, differentiation across commodity clusters had increased. That divergence persisted in the first half of financial year 2023, with the direct and indirect impacts of the Ukraine conflict continuing to drive extraordinary volatility in energy, food and fertiliser markets.

“Non–ferrous metals and the steelmaking value chain were also impacted by former Soviet Union (FSU) supply uncertainty, but China’s dynamic zero–Covid policy and housing market weakness, and the financial market turbulence that emerged elsewhere under escalating inflation, multi–region central bank tightening and recessionary speculation were even more influential,” McKay said.

“As expected, bottlenecks in global logistics, non–energy industrial products and downstream manufacturing have eased noticeably over the last six months, in part due to genuine efficiency improvement, but this trend is also due to a marked reduction in new order flow allowing backlogs to be cleared.”

McKay said that BHP’s concerns over the operational labour markets had been justified, with worker availability tight and wage pressures continuing to come through.

“The emerging nuance in this regard is that labour supply conditions are improved from where they were 12 or even 6 months ago – but from a unit labour cost perspective, the pressure remains high,” he added.

 

Edited by Creamer Media Reporter

Comments

 

Showroom

John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 
ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (14/03/2025)
14th March 2025 By: Martin Creamer
Magazine round up | 14 March 2025
Magazine round up | 14 March 2025
14th March 2025

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.132 0.21s - 144pq - 2rq
Subscribe Now