Manufacturers Cite Productivity for Lack of Hiring
More than a quarter of executives in part of a manufacturing survey say shifting production offshore and buying more parts and products from abroad are among the factors "most responsible" for their unwillingness to add U.S. workers.</br></br>But productivity gains remain the key factor keeping them from hiring.</br></br>The survey, by Manufacturers Alliance/MAPI, an Arlington, Va., association of large manufacturing companies, included responses from 37 executives at companies that aren't hiring about the factors impairing employment. While 27% cited the movement of production offshore and the same percentage cited the sourcing of more parts and finished goods from abroad, 84% pointed to productivity gains.</br></br>Other factors cited by 8% of executives included the need to contain costs, pressure from customers for lower prices, and the consolidation of facilities. "Those things could be interpreted as being linked to productivity gains, also," said Donald A. Norman, the group's economist. "There's just a relentless pressure on them to be more efficient."</br></br>The Manufacturers Alliance's regular quarterly business outlook, released yesterday, suggests that the recovery in manufacturing is gathering steam. The composite index of future business activity edged up from 77 in December to 78 in March, the highest in the survey's 32- year history. An index above 50 indicates manufacturing activity is expected to increase over the next three months.