Survey: Manufacturers see merits in maintenance outsourcing

RP news wires, Noria Corporation
Tags: maintenance and reliability

In a survey of 101 manufacturing executives in the automotive industry, from parts suppliers to engine makers to automakers, a majority say the cost of stopped production is incredibly high – an average $22,000 per minute. A majority also say they would outsource production machine maintenance as a way to make their factories run better. The research was commissioned by Advanced Technology Services, Inc. (ATS) and conducted by Nielsen Research.


While one minute of stopped production, or downtime, costs an average of $22,000, some survey respondents cite the figure to be as high as $50,000 per minute. With such high costs at stake, keeping production machinery operating smoothly is critical to a factory's bottom line.


When executives were asked if they could outsource more factory services, which one would provide the most productivity gains, more than half (53 percent) answered production machine maintenance. That function not only fixes broken production machinery, but also provides predictive and preventive maintenance that optimizes a factory's performance. Other areas they would outsource are tool room management and managing the spare parts storeroom.


ATS surveyed executives with titles of CEO, CIO, CFO, CTO and executive vice president, representing manufacturers across the automotive industry, with revenue from $10 million to more than $5 billion. The survey included motor vehicle parts manufacturers, engine and engine parts manufacturers, motor vehicle electrical and electronic equipment manufacturers, body and trailer manufacturers, automakers and more. The survey queried ways these manufacturers could achieve better productivity and profitability.


Manufacturers also answered with an overwhelming 70 percent that they would outsource a certain department or job function if it meant they no longer had the responsibility for searching for and recruiting skilled workers. In survey results released earlier, a majority said they anticipate the cost of a shortage in skilled workers will cost an average $50 million per company, across the industry.


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