Economic Updates¶
Exchange Rates¶
Global exchange rates have remained relatively constant since the Regional Data Libraries 2023-11 release, with the following notable exceptions:
- Russia: In the wake of the Ukraine war’s economic impact, Russia has forced exporters to convert their foreign revenues into Rubles to prop up the Russia’s currency. This action resulted in a nearly 14% increase in the value of the Ruble as compared to the US dollar which, in turn caused an increase in Russia’s labor rates in the latest data.
- Turkey: Amidst soaring inflation, the Central Bank of the Republic of Turkey lowered interest rates resulting in a further decrease in the Lira’s value against the US dollar benchmark, resulting in a portion of the decrease in Turkey’s labor rates reported in this RDL release.
The table below shows percentage changes in currency exchange rates, relative to the US Dollar (USD) and relative to the values provided in the 2023-11 Regional Data Libraries release.
If you are using local currencies in your deployment of aPriori, you are advised to update your installation with the exchange rates shown below. To update exchange rates, open the Deployment Data module within the Digital Factory Toolset and edit the values in the Currency tab.
| Currency Name | Currency Symbol | Currency Exchange Rate (vs. USD) | Percent Change from 2023-11 |
|---|---|---|---|
| Australian Dollar | AUD | 0.65982 | 3.4% |
| Brazilian Real | BRL | 0.20184 | 4.2% |
| Canadian Dollar | CAD | 0.74364 | 1.4% |
| Chilean Peso | CLP | 0.00110 | 1.2% |
| Chinese Yuan Renminbi | CNY | 0.14123 | 3.0% |
| Czech Koruna | CZK | 0.04386 | 1.8% |
| Danish Krone | DKK | 0.14615 | 3.3% |
| Euro | EUR | 1.08980 | 3.3% |
| Hungarian Forint | HUF | 0.00282 | 3.8% |
| Indian Rupee | INR | 0.01203 | 0.2% |
| Indonesian Rupiah | IDR | 0.00006 | 0.0% |
| Japanese Yen | JPY | 0.00678 | 0.9% |
| Korean Won | KRW | 0.00075 | 1.4% |
| Malaysian Ringgit | MYR | 0.21135 | 0.0% |
| Mexican Peso | MXN | 0.05804 | 5.9% |
| Norwegian Krone | NOK | 0.09557 | 3.9% |
| Philippine Peso | PHP | 0.01778 | 1.2% |
| Polish Zloty | PLN | 0.24867 | 7.6% |
| Pound Sterling | GBP | 1.27534 | 4.4% |
| Romanian Leu | RON | 0.21893 | 3.0% |
| Russian Ruble | RUB | 0.01128 | 13.9% |
| Shekel (Israel) | ILS | 0.26901 | 6.1% |
| Singapore Dollar | SGD | 0.74730 | 2.2% |
| South African Rand | ZAR | 0.05306 | 2.9% |
| Swedish Krona | SEK | 0.09583 | 5.3% |
| Swiss Franc | CHF | 1.15654 | 4.9% |
| Taiwan Dollar | TWD | 0.03190 | 2.6% |
| Thai Baht | THB | 0.02803 | 3.8% |
| Turkish Lira | TRY | 0.03303 | -8.5% |
| United States Dollar | USD | 1.00000 | 0.0% |
| Vietnamese Dong | VND | 0.00004 | 0.0% |
Labor Rates¶
Brazil: Unemployment in Brazil is reaching its lowest point in 9 years resulting in an overall increase in workers’ wages.
China: The direct benefits component of total wages, which previously was set to zero, has been increased to around 30% for China and its supported regions, resulting in a significant increase in labor rates.
Finland: For Finland, the direct benefits component of total wages, which was previously set to 0.351 for Finland, has been decreased by 41.6% to 0.205, resulting in a decrease in labor rates of approximately 8%.
India: Following independent research, it was determined that base wage values maintained in aPriori’s RDLs for India and all its sub-regions were too low and did not reflect current market conditions. As such, base wage amounts have been increased by 64%. Additionally, the direct benefits component of total wages for India was increased from zero to 0.22 or 22%. Combined, these component increases have resulted in a significant overall increase in labor rates.
Israel: Due to large numbers of workers being conscripted for military service and other being displaced by the war, Israel’s labor rates have been trending upward.
Japan: Although Japan’s base wage rate hasn’t changed with this release, their total labor rates have decreased by around 22% on average due to a correction applied to the direct benefits factor. The factor previously was set to 0.445 and now is updated to 0.112.
Malaysia: Growing optimism among business owners and an overall positive market outlook have resulted in a slight increase to median base labor wages in Malaysia. The majority of the increase seen in the current RDL release is the result of a correction to the direct benefits factor from 0.0 to 0.2.
Mexico: Following independent research it was determined that base wage values maintained in aPriori’s RDLs for Mexico and all its sub-regions were too low and did not reflect current market conditions. As such, base wage amounts have been increased by 87%. Additionally, the direct benefits component of total wages for Mexico was increased from zero to 0.185 or about 19%. Combined, these component increases have resulted in a significant overall increase in labor rates.
Romania: Minimum wage in Romania increased by around 10% during Q4 2023, resulting in an overall increase in base wages.
Russia: All the wage increase recognized for Russia can be attributed to an increase in exchange rate.
Korea: The direct benefits component of total wages for Korea, which was previously set to zero, has been corrected to 0.239 resulting in an increase to overall labor rates of around 26%.
Spain: Although mildly impacted by a decrease in exchange rate, most of the change realized to overall labor rates for Spain is attributable to the direct benefits component of total wages which was decreased from 0.371 to 0.150.
Thailand: The direct benefits component of total wages, which was previously set to zero, has been corrected to 0.180, resulting in a significant increase to overall labor rates for Thailand.
Turkey: A decrease in exchange rate is partly responsible for Turkey’s decrease in overall labor rates however the majority of impact is attributed to a correction to the direct benefits factor from 0.223 to 0.180.
USA: Continued decreasing unemployment and an increase in the direct benefits factor combined to result in increased overall labor rates for the USA.
The table below shows Labor Rate changes relative to the 2023-11 Regional Data Libraries release.
Note:
The labor rate column shows the average labor rate per country across all skill levels:
| Region | Current Avg Labor Rate | Percent Change from 2023-11 |
|---|---|---|
| Australia | $30.38 | 3.4% |
| Austria | $28.43 | 3.3% |
| Belgium | $40.00 | 3.3% |
| Brazil | $3.96 | 13.1% |
| Canada | $23.69 | 3.8% |
| Canada-Alberta | $27.05 | 3.8% |
| Canada-Atlantic (PE-NB-NL-NS) | $20.53 | 3.8% |
| Canada-Ontario | $23.57 | 3.8% |
| Canada-Quebec | $21.65 | 3.8% |
| Canada-West (BC-MB-SK) | $22.59 | 3.8% |
| Chile | $6.13 | 1.2% |
| China | $12.61 | 34.0% |
| China-Central-Hubei-Wuhan | $10.56 | 34.0% |
| China-East-Jiangsu-Suzhou | $12.94 | 34.0% |
| China-East-Shandong-Qingdao | $10.92 | 34.0% |
| China-East-Shanghai | $16.24 | 34.0% |
| China-East-Zhejiang-Hangzhou | $13.40 | 34.0% |
| China-North-Beijing | $22.52 | 34.0% |
| China-North-Hebei-Tianjin | $9.85 | 34.0% |
| China-Northeast-Liaoning-Dalian | $9.71 | 34.0% |
| China-SouthCentral-Guangdong-Guangzhou | $12.98 | 34.0% |
| China-Southwest-Chongqing | $10.06 | 34.0% |
| China-Southwest-Sichuan-Chengdu | $11.05 | 34.0% |
| Czech Republic | $14.34 | 1.8% |
| Denmark | $43.79 | 7.6% |
| Eastern Europe | $13.08 | 0.5% |
| Finland | $29.04 | -7.9% |
| France | $33.70 | 5.5% |
| Germany | $32.73 | -2.7% |
| Hungary | $11.64 | 3.8% |
| India | $2.04 | 100.5% |
| India-Delhi | $2.26 | 100.5% |
| India-Karnataka | $2.62 | 100.5% |
| India-Maharashtra | $2.49 | 100.5% |
| India-West Bengal | $2.38 | 100.5% |
| Indonesia | $0.89 | 0.0% |
| Ireland | $31.90 | 3.3% |
| Israel | $18.33 | 12.4% |
| Italy | $22.51 | -3.1% |
| Japan | $13.51 | -22.3% |
| Malaysia | $4.22 | 26.9% |
| Mexico | $6.92 | 137.8% |
| Mexico-Mexico City | $9.30 | 135.2% |
| Mexico-North | $7.65 | 142.0% |
| Mexico-South-West | $5.49 | 138.0% |
| Netherlands | $32.18 | 6.5% |
| Norway | $40.48 | 17.3% |
| Philippines | $1.70 | 1.2% |
| Poland | $14.03 | -5.3% |
| Portugal | $11.82 | 9.5% |
| Romania | $11.34 | 12.6% |
| Russia | $4.60 | 13.9% |
| Russia-Altaiski Krai | $2.87 | 13.9% |
| Russia-City of Moscow | $8.36 | 13.9% |
| Russia-Kaluga | $4.19 | 13.9% |
| Russia-Leningrad | $4.84 | 13.9% |
| Russia-Moscow region | $5.80 | 13.9% |
| Russia-Republic of Dagestan | $2.52 | 13.9% |
| Russia-Saint Petersburg | $5.88 | 13.9% |
| Russia-Sverdlovsk | $4.85 | 13.9% |
| Russia-Tyumen | $11.47 | 13.9% |
| Russia-Udmurtia | $3.33 | 13.9% |
| Saudi Arabia | $1.29 | 0.0% |
| Singapore | $30.12 | -4.0% |
| Slovakia | $12.32 | 3.3% |
| South Africa | $6.00 | 2.9% |
| South Korea | $21.30 | 25.6% |
| Spain | $17.30 | -13.4% |
| Sweden | $24.34 | -0.5% |
| Switzerland | $59.14 | 10.8% |
| Taiwan | $9.72 | 2.6% |
| Thailand | $2.11 | 22.5% |
| Turkey | $4.59 | -17.2% |
| USA | $37.95 | 17.1% |
| USA-California | $44.08 | 17.0% |
| USA-Central (AR-IA-KS-MT-NE-ND-OK-SD) | $30.09 | 17.1% |
| USA-Mid-Atlantic (DE-MD-PA-VA) | $39.69 | 17.1% |
| USA-Mountain (AZ-CO-ID-NV-NM-UT-WY) | $33.62 | 17.1% |
| USA-North Central (IL-MI-MN-OH-WI) | $36.33 | 17.1% |
| USA-Northeast (MA-NY-NJ-CT) | $47.12 | 17.1% |
| USA-Northeast-Rural (ME-NH-RI-VT) | $34.21 | 17.1% |
| USA-Pacific (WA-OR-HI-AK) | $35.95 | 17.1% |
| USA-Southeast (AL-FL-GA-IN-KY-LA-MO-MS-NC-SC-TN-WV) | $32.22 | 17.1% |
| USA-Texas | $38.18 | 17.1% |
| United Kingdom | $21.72 | 0.3% |
| Vietnam | $1.68 | 0.0% |
| Western Europe | $28.55 | -0.1% |
Total Manufacturing Rates¶
Total Manufacturing rates have remained mostly steady since the release of the 2023-11 Regional Data Libraries, with the following notable changes:
- China: Climbing retail sales have contributed to China’s increased manufacturing rate in late 2023.
- Mexico: Mexico is among the world’s largest importers of Advanced Manufacturing (AM) technology and increasing orders for AM products have resulted in Mexico’s increased manufacturing rate.
- South Korea: Chip production has led to South Korea’s unexpected jump in manufacturing output.
- Turkey: An ongoing focus on manufacturing continues to fuel significant annual growth of new ventures and employment opportunities resulting in Turkey’s augmented manufacturing market value and increased output.
- USA: Oil exports and renewable energy equipment production increased significantly in the U.S. during 2023. Additionally, factory production rose during the fourth quarter, boosted by a rebound of automotive output following the end of the auto-workers union strikes. Combined, these contributed to an increase in the U.S. manufacturing rate.
The table below shows changes in Total Manufacturing Rates (Labor + Direct and Indirect Overhead) relative to the 2023-11 Regional Data Libraries release. All columns with rates included are the average rate for that specified country.
| Region | Current Avg Labor Rate | Direct Overhead Rate | Indirect Overhead Rate | Total Manufacturing Rate | Percent Change from 2023-11 |
|---|---|---|---|---|---|
| Australia | $30.38 | $41.09 | $15.00 | $86.48 | 2.7% |
| Austria | $28.43 | $40.31 | $13.88 | $82.62 | 2.3% |
| Belgium | $40.00 | $37.73 | $18.40 | $96.13 | 2.3% |
| Brazil | $3.96 | $38.26 | $3.00 | $45.23 | 1.3% |
| Canada | $23.69 | $36.90 | $11.88 | $72.47 | 2.0% |
| Canada-Alberta | $27.05 | $36.90 | $13.48 | $77.43 | 2.1% |
| Canada-Atlantic (PE-NB-NL-NS) | $20.53 | $36.90 | $10.41 | $67.83 | 1.9% |
| Canada-Ontario | $23.57 | $36.90 | $11.83 | $72.29 | 2.0% |
| Canada-Quebec | $21.65 | $36.90 | $10.95 | $69.50 | 2.0% |
| Canada-West (BC-MB-SK) | $22.59 | $36.90 | $11.38 | $70.87 | 2.0% |
| Chile | $6.13 | $37.55 | $4.20 | $47.88 | 1.2% |
| China | $12.61 | $32.30 | $6.65 | $51.56 | 10.4% |
| China-Central-Hubei-Wuhan | $10.56 | $32.30 | $5.77 | $48.63 | 9.3% |
| China-East-Jiangsu-Suzhou | $12.94 | $32.30 | $6.80 | $52.04 | 10.6% |
| China-East-Shandong-Qingdao | $10.92 | $32.30 | $5.93 | $49.15 | 9.5% |
| China-East-Shanghai | $16.24 | $32.30 | $10.49 | $59.03 | 12.7% |
| China-East-Zhejiang-Hangzhou | $13.40 | $32.30 | $6.99 | $52.69 | 10.8% |
| China-North-Beijing | $22.52 | $32.30 | $11.24 | $66.06 | 14.5% |
| China-North-Hebei-Tianjin | $9.85 | $32.30 | $5.46 | $47.61 | 8.9% |
| China-Northeast-Liaoning-Dalian | $9.71 | $32.30 | $5.41 | $47.41 | 8.8% |
| China-SouthCentral-Guangdong-Guangzhou | $12.98 | $32.30 | $6.83 | $52.11 | 10.6% |
| China-Southwest-Chongqing | $10.06 | $32.30 | $6.30 | $48.66 | 9.3% |
| China-Southwest-Sichuan-Chengdu | $11.05 | $32.30 | $5.99 | $49.34 | 9.6% |
| Czech Republic | $14.34 | $36.05 | $7.62 | $58.00 | 1.6% |
| Denmark | $43.79 | $53.95 | $20.51 | $118.25 | 4.8% |
| Eastern Europe | $13.08 | $37.30 | $6.99 | $57.37 | 1.0% |
| Finland | $29.04 | $36.31 | $14.05 | $79.41 | -3.7% |
| France | $33.70 | $36.09 | $15.87 | $85.66 | 3.4% |
| Germany | $32.73 | $45.57 | $15.89 | $94.18 | -0.6% |
| Hungary | $11.64 | $38.34 | $6.36 | $56.35 | 1.8% |
| India | $2.04 | $34.49 | $1.92 | $38.45 | 4.4% |
| India-Delhi | $2.26 | $34.49 | $2.02 | $38.77 | 4.7% |
| India-Karnataka | $2.62 | $34.49 | $2.34 | $39.45 | 5.2% |
| India-Maharashtra | $2.49 | $34.49 | $2.22 | $39.20 | 5.1% |
| India-West Bengal | $2.38 | $34.49 | $2.14 | $39.00 | 4.9% |
| Indonesia | $0.89 | $31.70 | $1.67 | $34.27 | 2.7% |
| Ireland | $31.90 | $43.87 | $15.40 | $91.17 | 2.4% |
| Israel | $18.33 | $38.14 | $9.54 | $66.01 | 5.7% |
| Italy | $22.51 | $40.67 | $11.11 | $74.30 | -0.2% |
| Japan | $13.51 | $40.01 | $8.19 | $61.71 | -7.3% |
| Malaysia | $4.22 | $30.22 | $3.14 | $37.58 | 3.9% |
| Mexico | $6.92 | $43.47 | $2.89 | $53.28 | 11.0% |
| Mexico-Mexico City | $9.30 | $43.47 | $3.84 | $56.61 | 13.5% |
| Mexico-North | $7.65 | $43.47 | $3.06 | $54.17 | 12.0% |
| Mexico-South-West | $5.49 | $43.47 | $2.54 | $51.49 | 9.4% |
| Netherlands | $32.18 | $38.46 | $15.41 | $86.05 | 3.9% |
| Norway | $40.48 | $41.49 | $19.07 | $101.04 | 9.4% |
| Philippines | $1.70 | $35.57 | $2.03 | $39.30 | 0.9% |
| Poland | $14.03 | $35.00 | $7.21 | $56.24 | -1.4% |
| Portugal | $11.82 | $38.77 | $6.64 | $57.23 | 3.7% |
| Romania | $11.34 | $39.94 | $6.27 | $57.55 | 5.0% |
| Russia | $4.60 | $37.99 | $3.64 | $46.22 | 2.4% |
| Russia-Altaiski Krai | $2.87 | $37.99 | $2.57 | $43.43 | 1.8% |
| Russia-City of Moscow | $8.36 | $37.99 | $6.63 | $52.98 | 3.4% |
| Russia-Kaluga | $4.19 | $37.99 | $3.32 | $45.50 | 2.2% |
| Russia-Leningrad | $4.84 | $37.99 | $3.84 | $46.67 | 2.4% |
| Russia-Moscow region | $5.80 | $37.99 | $4.60 | $48.38 | 2.7% |
| Russia-Republic of Dagestan | $2.52 | $37.99 | $2.41 | $42.91 | 1.7% |
| Russia-Saint Petersburg | $5.88 | $37.99 | $4.66 | $48.52 | 2.8% |
| Russia-Sverdlovsk | $4.85 | $37.99 | $3.85 | $46.69 | 2.4% |
| Russia-Tyumen | $11.47 | $37.99 | $9.12 | $58.57 | 4.1% |
| Russia-Udmurtia | $3.33 | $37.99 | $2.79 | $44.10 | 1.9% |
| Saudi Arabia | $1.29 | $32.12 | $1.82 | $35.23 | 0.6% |
| Singapore | $30.12 | $38.94 | $14.91 | $83.97 | -1.4% |
| Slovakia | $12.32 | $39.85 | $6.79 | $58.96 | 2.0% |
| South Africa | $6.00 | $37.77 | $4.20 | $47.98 | 0.5% |
| South Korea | $21.30 | $30.77 | $10.69 | $62.76 | 11.1% |
| Spain | $17.30 | $42.62 | $8.99 | $68.91 | -4.4% |
| Sweden | $24.34 | $37.70 | $12.14 | $74.18 | 0.2% |
| Switzerland | $59.14 | $41.68 | $22.25 | $123.07 | 6.9% |
| Taiwan | $9.72 | $35.50 | $5.79 | $51.01 | 1.8% |
| Thailand | $2.11 | $31.34 | $2.26 | $35.70 | 2.5% |
| Turkey | $4.59 | $63.45 | $3.91 | $71.96 | 17.5% |
| USA | $37.95 | $40.26 | $18.15 | $96.36 | 9.4% |
| USA-California | $44.08 | $40.26 | $21.07 | $105.41 | 9.9% |
| USA-Central (AR-IA-KS-MT-NE-ND-OK-SD) | $30.09 | $40.26 | $14.55 | $84.90 | 8.6% |
| USA-Mid-Atlantic (DE-MD-PA-VA) | $39.69 | $40.26 | $18.97 | $98.93 | 9.5% |
| USA-Mountain (AZ-CO-ID-NV-NM-UT-WY) | $33.62 | $40.26 | $16.13 | $90.02 | 9.0% |
| USA-North Central (IL-MI-MN-OH-WI) | $36.33 | $40.26 | $17.39 | $93.98 | 9.2% |
| USA-Northeast (MA-NY-NJ-CT) | $47.12 | $40.26 | $22.53 | $109.92 | 10.1% |
| USA-Northeast-Rural (ME-NH-RI-VT) | $34.21 | $40.26 | $16.42 | $90.89 | 9.0% |
| USA-Pacific (WA-OR-HI-AK) | $35.95 | $40.26 | $17.20 | $93.41 | 9.2% |
| USA-Southeast (AL-FL-GA-IN-KY-LA-MO-MS-NC-SC-TN-WV) | $32.22 | $40.26 | $15.49 | $87.97 | 8.8% |
| USA-Texas | $38.18 | $40.26 | $18.26 | $96.71 | 9.4% |
| United Kingdom | $21.72 | $45.00 | $11.06 | $77.79 | 0.8% |
| Vietnam | $1.68 | $32.19 | $1.97 | $35.83 | 0.7% |
| Western Europe | $28.55 | $41.66 | $13.82 | $84.03 | 0.6% |
Material Rates¶
Although many material prices remained stable, the following changes are noteworthy:
- The iron ore market has experienced a shortfall during the last quarter of 2023. That plus a demand surge for iron ore and coking coal contributed to a strong demand, resulting in increased prices for Gray Iron, Ductile Iron, and Malleable Cast Iron.
- Increased production and decreased demand from downstream industries led to reduced prices for Inconel, Hastelloy, and other Heat Resistant Super Alloys.
- HDPE price increases at the end of Q3 were primarily due to reduced material supplies resulting from lower production rates at regional plants and limited imports from foreign suppliers. Steady demand from the downstream packaging sector also supported these price gains.
- The export market for PP showed substantial buying interest coming from China as they reopened their borders, resulting in increased prices overall.
- Increased demand, rising monomer costs, and precautionary buying following the escalation of conflict in the Middle East all contributed to rising prices for Polypropylene and Polyethylene.
These are the material rate changes relative to the 2023-11 release, averaged across various stock forms and sizes:
| Non-Ferrous | Non-Ferrous | Ferrous Metals | Ferrous Metals | Plastics | Plastics |
|---|---|---|---|---|---|
| Aluminum | 5.3% | Ductile Iron | 11.3% | ABS | -1.4% |
| Aluminum Bronze | 2.5% | Galvanized Steel | 4.2% | ABS -Extrusion Sheet GP | -1.5% |
| Brass | 3.9% | Low-Alloy Steel | 3.1% | HDPE - Extrusion Sheet | 10.5% |
| Bronze | 4.1% | Malleable Cast Iron | 10.4% | Nylon | -3.9% |
| Copper | 2.3% | Stainless Steel | -3.6% | PP - Extrusion Sheet | 23.9% |
| Gray Iron | 11.5% | Steel | 3.6% | PS - Crystal Injection GP | 3.5% |
| Heat Resistant Super Alloys | -13.2% | Unalloyed Steel | 3.0% | PS - High Impact Extrusion | 3.3% |
| Magnesium | -2.6% | Polycarbonate | -1.8% | ||
| Titanium | -0.4% | Polyethylene | 10.2% | ||
| Zinc | 7.1% | Polypropylene | 23.2% | ||
| Zinc-Aluminum | 6.9% | Polystyrene | 3.1% |