Voith Paper
Past Issues | TAPPI.org | Advertise | Buyers Guide | TAPPI Press Catalog
Travels with Larry Archive

One-Third of N.A. Manufacturers, Distributors to Increase Workforce as Demand Improves

Print Print this article | Send to Colleague

Driven by increased demand for their products and services, almost a third of North American manufacturing and distribution firms in the small and midsized business (SMB) sector expect to increase the size of their workforce in 2013, and 45% plan to keep it the same, according to the results of a survey announced this week by Sage North America, Irvine, Calif., USA. Sage conducted the survey among 242 executives of SMB manufacturers and distributors.

The Sage SMB Hiring Outlook Survey revealed that among those businesses in the U.S. and Canada who plan to add jobs, 83% cited a stronger demand for their company's products and services, while 23% said an improved economic outlook is helping drive the decision.

Only 7% of companies stated that they have decreased or will decrease the size of their workforce in 2013. The economy was a bigger factor for firms that planned to decrease their workforce size or keep it the same, with 45% saying economic uncertainty influenced their decision and 42% citing a steady or weakened demand for products and services.

"The good news is that most of the manufacturers and distributors we surveyed are planning to increase their workforce or at least stay the course in 2013, but of course we'd all like to see a stronger employment outlook," said Joe Langner, EVP, Mid-Market Solutions for Sage North America. "Economic uncertainty and the costs of doing business are making it even more important for SMB manufacturers and distributors to streamline their operations and take advantage of technology and tools that help them run smarter, more cost-effective businesses.

"Business leaders could look to mobile technology, for example, which can go far to help improve efficiencies and employee productivity. Mobile business applications enable seamless integration between the production plant and the office, eliminating potential bottlenecks between departments," Langner explained.

The survey revealed that of those SMB manufacturers and distributors who have hired or plan to hire in 2013, 92% seek full-time help, which seems to run against common speculation that the Affordable Care Act would dampen job growth, specifically affecting the hours of full-time employees.

Among companies who hired in both 2012 and 2013, 39% expect to hire more employees this year than in 2012, and 52% expect to hire about the same.

 

Xerium Technologies, Inc.
Sweed Machinery, Inc