> Construction is famously labor intensive: direct labor makes up close to 50% of the cost of constructing a new single-family home in the US, compared to around 6 to 8% of the cost of manufacturing a car.
Is this only calculating last mile labor, or all the labor along the way? Like, for a car, does it count the cost of steel as purely non-labor costs, or do they factor in the labor cost for mining the ore, etc?
Because I feel like at the end of the day, almost all costs are 'labor' costs, they are just paid by different people/companies earlier in the process. Housing just has a lot of the labor as the final step, assembling the house on site. Cars have more of their labor at earlier stages of the process, and the assembling is mostly automated.
As I understand it, even just considering ‘last mile’ costs, labour is a majority of the cost, and fit-out is the majority of the labour. Then again, where I live skilled trades cost a lot, so this is probably different elsewhere.
Is this only calculating last mile labor, or all the labor along the way? Like, for a car, does it count the cost of steel as purely non-labor costs, or do they factor in the labor cost for mining the ore, etc?
Because I feel like at the end of the day, almost all costs are 'labor' costs, they are just paid by different people/companies earlier in the process. Housing just has a lot of the labor as the final step, assembling the house on site. Cars have more of their labor at earlier stages of the process, and the assembling is mostly automated.