Economy, Business And Markets

Scourge of Low Productivity Under Scrutiny

Scourge of Low Productivity Under ScrutinyScourge of Low Productivity Under Scrutiny

Outdated technology used by Iranian industries is to blame for their low level of productivity, said the head of National Iranian Productivity Organization.

“Finding a solution to the issue of low productivity is a specialized job that requires expertise. It is not possible to prescribe a cure-all for every problem of all industries,” Roya Tabatabaei said. “As for the auto industry, automakers have no other option but to join hands with their foreign counterparts and tap into the technology they possess. The only way ahead is joint venture.”

While head of the Exporters Association for Mining, Industrial Products and Engineering Services Rahman Pourqorban puts the efficiency of Iranian blue-collar workers at one to two hours on average, Tabatabaei says human resources are not all to blame for the low productivity of the workforce, arguing that if the workforce is provided with efficient technology, productivity is bound to increase.

The NIPO head added that many industries are operating at a fraction of their capacity while practically there is no demand for their products.

She said based on preliminary estimates, productivity accounts for 22% of Iran’s total economic growth, falling short of the 33% share the country’s economic development plans have envisioned.

“Because of the dramatic plunge in oil prices, we need to rely on industry and not the national resources,” she added.

According to Tabatabaei, telecommunications enjoys the highest level of productivity among all domestic industries.