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Labor Market Research
for International Expansion
to a German Home Appliances Manufacturer

The case study demonstrates the ability to provide strategic labor market research and competitive analysis to support international expansion efforts. By delivering detailed insights into local labor conditions, employment costs, and competitive strategies, PRODENSA helped the client make informed decisions that were crucial to the successful launch and growth of their new manufacturing facility in North America.

Overview

A German home appliances manufacturer planned to construct a new polymer manufacturing plant in North America, covering nearly 18,000 square meters with LEED Gold standards certification. The facility was designed to produce over 800,000 plastic pieces daily while incorporating advanced technology to reduce carbon emissions. To ensure the successful growth of their operations, the CLIENT needed to understand the local labor market conditions and design a competitive compensation package that would attract and retain top technical talent. PRODENSA was engaged to provide comprehensive labor market research and regional competition analysis.

Project Stages

CLIENT Needs Analysis

PRODENSA began the project by conducting a thorough analysis of the CLIENT’s specific needs. This involved understanding the scope of the new plant’s operations, the types of technical skills required, and the CLIENT’s goals for workforce attraction and retention.

Labor Market Research

The research phase involved desktop research, competitor assessments, and candidate interviews. PRODENSA gathered data on local labor market conditions, including the availability of skilled workers, prevailing wage rates, and the competitive landscape. The study also included an analysis of 15 key competitors operating in the same región.

Data Analysis & Compensation Recommendations

After collecting the necessary data, PRODENSA conducted a detailed analysis to benchmark salaries and develop a comprehensive compensation strategy. This analysis was designed to ensure that the CLIENT’s compensation packages were competitive and attractive to the best talent in the región.

Final Report Creation & Presentation

The final stage involved compiling the findings into a comprehensive report, which included detailed recommendations on compensation, labor market conditions, and competitive strategies. PRODENSA presented the report to the CLIENT, providing actionable insights to guide their recruitment and expansion efforts.

Challenges & Solutions

  • Workforce Availability & Skills: The CLIENT needed to determine whether the local labor market could supply the necessary skilled workers or if they would need to invest in training or expatriate labor.
  • Solution: PRODENSA’s labor market study provided a detailed analysis of workforce availability and skills, helping the CLIENT make informed decisions about talent acquisition and development.
  • Labor Costs: Understanding labor costs across different locations was essential for assessing the financial feasibility of the new plant.
  • Solution: The study included a thorough comparison of labor costs, enabling the CLIENT to evaluate the economic implications of their expansion.
  • Competition for Talent: The CLIENT needed to be aware of the competitive landscape for technical talent in the region.
  • Solution: PRODENSA’s competitor assessment provided insights into the recruitment strategies of other companies in the area, helping the CLIENT develop a competitive edge in attracting top talent.

Project Outcome

PRODENSA delivered a tailor‑made Labor Market Study that addressed the CLIENT’s specific needs and included comprehensive information from 15 competitors. The insights gained from this study enabled the CLIENT to design a new compensation scheme, which they successfully used to hire over 500 technicians for their new plant. The study also provided a strategic foundation for the CLIENT’s ongoing efforts to attract and retain top talent in a competitive market.