Companies' Cost-Saving Initiatives: Is Outsourcing a Feasible Option for Manufacturing?

Many manufacturing jobs have gone high-tech, increasing the demand for workers with advanced skills and knowledge. But many companies are finding themselves in a bind – their internal recruiting and staffing capabilities have declined as their needs have grown and become more complex. As a result, many have turned to recruiting firms, recognizing that finding the right people to staff the next industrial revolution is best left to the professionals. 

Is manufacturing in decline or is it experiencing a resurgence? While traditional manufacturing may be shrinking, there’s plenty of life in “advanced” manufacturing. This 21st century manufacturing sector is highly technical and driven by research and development. In fact, even as workers with more traditional manufacturing skills join the unemployed, some companies are having trouble finding the highly skilled and flexible workers they need.

In this parallel universe, many organizations are turning to professional recruiters. This not only makes their hiring capabilities much more nimble and responsive, it enables them to focus on their businesses, a necessity in this environment. In technologically advanced fields, having the most skilled and innovative workers is critical to outperforming the competition.

Clearly, the manufacturing industry increasingly demands the same careful hiring process as other skilled fields. But there are numerous challenges. Companies looking for new hires may find themselves constrained: Even as they have scaled back their internal HR capabilities as part of a cost-cutting plan, hiring has become more difficult. Demographic forces are also working against them. Baby Boomers are hitting retirement and fewer young people are entering the skilled trades.

New Skills Needed for a Changing Market

The industry itself is changing rapidly. Companies have retooled what they make, as well as their production methods in order to exploit new markets. The federal stimulus plan, for example, is expected to give a major boost to alternative energy, including the design and production of solar panels and wind turbines.

This is likely to radically alter how turbines are produced. Many more turbines will have to be designed and produced in much greater volume, more quickly and more cost effectively - all without sacrificing quality. To make that happen, professionals who are already in limited supply, such as electrical, electronic and mechanical engineers, will be needed.

Finding the right people in this whirlwind environment clearly requires a high level of expertise. The requirements for successful recruiters are high. They must have solid knowledge of the many sectors in which they recruit, from pharmaceuticals and energy to food processing and biotechnology. Within those sectors, they need to understand individual product lifecycles so they can anticipate and meet changing client needs in a timely way.

Virtually every manufactured product has a lifecycle. Whether it’s the seven years between the time a medication is introduced and the patent expires or the next generation of electronics, long-term planning is essential.

A Complex Landscape: Dozens of Sectors, Scores of Jobs

Also, there is such a vast range of skill sets within these vertical industries. Successful recruiters must understand the requirements of scores of very different jobs or have specialists within their organizations to whom they can turn to, such as experts in R&D, sales, quality or electrical engineering. In some cases, they may be competing with recruiters in other industries, such as IT, making recruiting even more difficult.

Many searches are also time-sensitive. Having the right people in place enables plants and other facilities to stay on schedule and meet commitments to customers. A critical absence or shortage of key employees can have serious consequences.

To ensure that they have a good selection of candidates, recruiters must develop and maintain exceptional networks. They must be plugged in to professional organizations, web communities and other resources in both manufacturing circles and industry verticals. Passive recruiting may be necessary since people in niche industries or with highly specialized skills may already be working.

The Next Industrial Revolution

While manufacturing is indisputably a good news/bad news industry at this point, there are major forces at work as the U.S. undergoes what could be its next industrial revolution. If automation fueled the last revolution, this one will be powered by skilled and knowledgeable people and advanced technology. Finding those people is a job in itself and that just might be best left to the professionals.