Labor Rate vs Productivity

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Today at our MRO Baltics, Eastern Europe and Russia/CIS forum here in Vilnius an interesting discussion about labor rates, productivity and evaluating the two. 

It started after Audrey Bel'bas, head of marketing for Engineering-Aviation Maintenance Holdings in Russia, presented a chart of the world showing labor rates in each region. 

A natural question followed about how to effectively measure productivity/efficiency vs. labor rates. An MRO could offer cheaper labor rates but if it accumulates many more man-hours completing a job, is it worth it? How many MROs truly continually try to hone their productivity vs simply survive and conduct business as usual? On a global scale, it would be interesting to know that. 

Thoughts? Signing off from Lithuania.

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