Effects of Minimum Wage Hikes on Machined Products

CCMachine_Minimum WageSome states like California and New York plan on raising their minimum wage to $15 per hour.  This increase may not directly cause and increase to wages for machinists in these states because the mean wage for machinists already exceeds the $15 per hour threshold.  For example, the mean wage for a machinist in California is $20.79 per hour according to the Bureau of Labor Statistics.

However, there could be a domino effect due to skill to wage relativity.  If a machinist makes $20 per hour and a restaurant worker makes $10 per hour, the ratio is 2:1.  If the wage of the restaurant worker increases to $15 per hour, then the machinist’s wage would need to increase to $30 per hour to maintain the ratio.  The machinist’s wage may not increase to that extent, but there will probably be pressures to do so.  This will make the cost of machining and producing products more expensive.

To combat these inflationary pressures, business owners, corporate leaders, purchasing managers and engineers should consider states like Oklahoma for their precision machining needs.  Currently, Oklahoma has no plans to increase its minimum wage.  Oklahomans enjoy a low cost of living, as strong work ethic, tremendous skill sets in precision machining and many years of experience in the industrial sector.  Another benefit is its central location and Port of Catoosa.  These attributes may help reduce freight and shipping costs.

To save money on your precision machined products, contact us at C&C Machine today.