August 30, 2005
ATS Survey Reveals Skilled Labor Shortage Threatens American Industry: Nation's Largest Manufacturers Predict Spending $100 Million Each to Recruit, Train Workers
America's looming skilled labor shortage is predicted to
cost the country's largest manufacturers at least $100 million dollars
each over the next five years, according to results of a survey
commissioned by Advanced Technology Services, Inc. (ATS) and conducted
by AC Nielsen, a leading consulting and custom research firm.
In the survey of 94 senior manufacturing executives, with titles
of CEO, CIO, Vice President and Plant Manager, ATS asked: Forecasts
indicate that during the next five years, approximately 40 percent of
your skilled labor force will retire. What do you anticipate the
retirement of 40 percent of your skilled labor force will cost your
company in these five years?
Of the 20 respondents with more than $1 billion in revenue,
one-third predict their cost to top $100 million in the next five
years. The shortage is caused by a combination of factors, including
the imminent retirement of baby boomers, fewer apprenticeship programs
and fewer high school graduates pursuing manufacturing skills.
Companies say they will need to invest heavily in recruiting and
training replacements.
"The looming skilled worker shortage is an unwelcome threat to the
nation's manufacturing base that needs to be addressed at multiple
levels, from better educating the next generation of factory workers
to improving the public's image of plant work," said ATS President
Jeffrey Owens. "Our most modern and cutting edge plants can be more
productive and profitable by deploying highly skilled employees that
make their production machinery run better."
ATS pioneered the factory asset service business two decades ago,
and today is the leading company providing managed services for
production equipment maintenance, industrial parts repair and IT
infrastructure support for manufacturers. Key to ATS success is a
recruitment and training program that fulfills the need for a skilled
workforce.
ATS is responding to this looming crisis with a series of
results-oriented steps. The company today announces the launch of a
white paper, Workforce Trends: Tools for taking control of today's
skilled labor shortage, providing guidance on what companies can do.
Workforce Trends illustrates the benefits - immediate and long-term -
to be found in taking proactive steps to recruit, train, and promote a
multi-skilled labor force. This dynamic tool enumerates the steps ATS
takes to satisfy two significant needs facing US industry: providing
the hard-to-come by talent to work in factories; and making factories
more productive so that manufacturers won't look elsewhere for cheaper
production.
ATS customers who have benefited from significantly increased
factory productivity, skilled labor fulfillment and improved
competitiveness include Fortune Brands (NYSE:FO), TRW Automotive
(NYSE: TRW), Textron (NYSE: TXT), Johnson & Johnson (NYSE:JNJ),
Caterpillar Inc. (NYSE: CAT), Eaton (NYSE: ETN), Honeywell (NYSE:
HON) , GE (NYSE: GE), Honda Motor Company (NYSE: HMC), and other
manufacturing leaders.
About ATS:
ATS makes factories run better. Advanced Technology Services, Inc.
(ATS) improves productivity and profitability for many of the world's
most respected manufacturers through the managed services of
production equipment maintenance, information technology and spare
parts repair. Founded in 1985, ATS employs over 1,500 people across
the US and is a member of the National Association of Manufacturers.
ATS is headquartered in Peoria, IL with offices and services centers
located in Greenville, SC, and Detroit, MI. For more information,
visit the ATS Web site at www.AdvancedTech.com.
About ACNielsen:
Through custom research and consulting, ACNielsen delivers
Actionable Intelligence to its clients engaged in the business of
selling and trading in the global marketplace.
