According to a survey of 150 manufacturers commissioned by Advanced Technology Services (ATS) with Frost & Sullivan, 29 percent of manufacturing companies with more than 1,000 employees say they have seen no impact at all on their business due to the recession. Only 19 percent of companies surveyed said the economic downturn has had a “great” impact or “very great” impact on their business.
Larger companies (those with 1,000 or more workers) reported the least impact due to the recession, whereas medium-sized organizations reported seeing the greatest impact, saying that the economy has resulted in layoffs of full-time workers.
Additionally, many manufacturers are wondering what effect the recession will have on the skilled labor shortage. Survey respondents reported the lack of skilled labor is expected to cost their organizations on average $11 million over the next five years. The cost reported is highest for larger companies and is estimated at $17 million. The majority of respondents indicated they would fill positions with full-time workers when the economy recovers, however, close to a third said they would also fill positions through outsourcing with contract/flexible workforce.
