I love the personal anecdote and I hope you’re having a great Easter with your family.
Does the company discuss their labor costs? I’d be curious to know whether they’re facing challenges recruiting and training qualified technicians, especially in the US.
Thank you, Tain! I don't recall detailed comments recently, but over the last few years they have highlighted rising labor costs / wage inflation as a headwind, as well as the fact that fewer people are entering this specific industry workforce. However, the company has done a good job offsetting such headwinds with what I view as their one of their central competitive advantages: density. It's not just about the size of the service port. It's about where all units are located. Optimizing for dense service routes allows using fewer maintenance techs and increases productivity. This is another reason Mod is so interesting to the profit profile. You can't control exactly where NE will be built. But you CAN target specific legacy units out of portfolio for Mod that you are certain align with improving the density of certain routes.
I love the personal anecdote and I hope you’re having a great Easter with your family.
Does the company discuss their labor costs? I’d be curious to know whether they’re facing challenges recruiting and training qualified technicians, especially in the US.
Thank you, Tain! I don't recall detailed comments recently, but over the last few years they have highlighted rising labor costs / wage inflation as a headwind, as well as the fact that fewer people are entering this specific industry workforce. However, the company has done a good job offsetting such headwinds with what I view as their one of their central competitive advantages: density. It's not just about the size of the service port. It's about where all units are located. Optimizing for dense service routes allows using fewer maintenance techs and increases productivity. This is another reason Mod is so interesting to the profit profile. You can't control exactly where NE will be built. But you CAN target specific legacy units out of portfolio for Mod that you are certain align with improving the density of certain routes.
That’s a great insight.