Are U.S Manufacturers Confident Enough To Begin Hiring Again?

U.S. industrial manufacturers are feeling better about the domestic economy according to the PwC Q2 2013 Manufacturing Barometer that was released July 18, 2013. However, they are still nervous about the global economy and what new regulations might come down from Washington.

As a result, expansions in the third quarter are expected to be cautious.

According to the latest survey, 42 percent of industrial manufacturers plan to add employees to their workforce over the next 12 months, off three points from the first quarter. 

Only five percent plan to reduce the number of fulltime equivalent employees, and 53 percent will stay about the same. The net workforce projection stayed at plus 0.9 percent, similar to last quarter's plus one percent, indicating some new hiring continuity among several of these industrial manufacturing companies. The most sought-after employees will be production workers (23 percent), skilled labor (23 percent) and professionals/technicians (18 percent).

Similar to levels recorded in the first quarter, second quarter survey respondents highlighted legislative/regulatory pressures (53 percent) and lack of demand (47 percent) as the biggest barriers for growth over the next 12 months. Oil/energy prices were viewed by 22 percent as a barrier to growth, a significant drop from 35 percent in the first quarter and 48 percent in last year's second quarter.

"We're seeing a significant moderation in concerns regarding energy costs among industrial manufacturers, consistent with other recent PwC studies. It appears that the increase in shale oil and gas production domestically is having a positive effect on energy costs and is now impacting strategic planning among some industrial manufacturers. This is a welcome development for management teams given the moderately growing economy and the continued emphasis on controlling costs.”

Restore The Roar: Manufacturing Renaissance tells the story of the collapse and rise of Michigan manufacturing by showcasing the entrepreneurs who are driving twenty-first century growth.

Manufacturers are hiring again. However, they are having trouble finding qualified employees. Where are the Workers? is the second essay in the Restore The Roar series. For a free preview of Where Are the Workers: Finding the Lost Generation, please click here.

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