Forced to become leaner during the latest recession, American businesses are apparently doing more with fewer workers. As the economy improves, productivity (economic output per labor hour) continues to rise; it increased 3.5% in 2009 and 3.6% in 2010.
Most small businesses operate a tight ship. They manage overhead expenses and watch cost of sales to stay on the credit side of the ledger. But when you’ve reached a point where you cannot see any further ways to reduce costs, there could still be an opportunity to increase your profits through increasing productivity.