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SHRM Poll: The Ongoing Impact of the Recession—Manufacturing Industry 2012 Update

June 22, 2012

SHRM Poll: The Ongoing Impact of the Recession 2012 Update—Manufacturing Industry ©SHRM 2012 2

The Ongoing Impact of the Recession:Manufacturing Industry

Introduction

Key Findings

Organizations’ Financial Health

Hiring

Recruiting Challenges

Demographics

Methodology


Introduction

This report compares the results of three SHRM polls on the impact of the recession on U.S. organizations in the manufacturing industry:

The Ongoing Impact of the Recession—Manufacturing Industry April 2012 Manufacturing industry only

The Ongoing Impact of the Recession August 2011 Eight industries: manufacturing; construction, mining, oil and gas; federal government;

finance; health; state and local government; services—professional; high-tech

2010 Post-Recession Hiring January 2010 Eight industries: manufacturing; construction, mining, oil and gas; federal government;

finance; health; state and local government; services—professional; high-tech


Key Findings: Organizations’ Financial HealthManufacturing Industry

What percentage of staff have organizations laid off since the U.S. and global recession began in December 2007? Overall, nearly three-quarters (72%) of respondents from the manufacturing industry indicated they had lost 10% of employees or less in 2012, a slight increase from 66% in 2011. In 2010, fewer than one-half (43%) of these organizations had reported losing less than 10% of employees.

How does organizations’ financial health compare to 12 months ago? In 2012, almost three-quarters (73%) of organizations in the manufacturing industry reported mild to significant improvement in organizational financial health compared with a year ago. This is an increase from 59% in both 2011 and 2010. The percentage of manufacturing organizations that were in a significant recovery increased from 6% in 2010 to 19% in 2011.


Key Findings: HiringManufacturing Industry

Are organizations currently hiring? The majority (75%) of respondents from the manufacturing industry are currently hiring. This number has not changed over the past seven months (from August 2011 to April 2012), but has increased from 51% in 2010.

Are organizations creating new positions or replacing jobs lost? In 2012 and 2011, more than one-half of organizations (52% and 54%, respectively) in the manufacturing industry were hiring direct replacements of jobs lost since the recession began, an increase compared with 2010 (42%). Fewer organizations were hiring for completely new positions in 2012 (36%) and 2011 (32%) than in 2010 (48%).


Key Findings: Recruiting ChallengesManufacturing Industry

Is recruiting for specific jobs difficult in the current labor market? Among organizations that are currently hiring full-time staff, more than two-thirds (67%) of respondents from the manufacturing industry indicated that their organizations are having a difficult time recruiting for specific open jobs. When recruiting for jobs that require new and different skill sets, more organizations in the manufacturing industry have found it difficult to find qualified individuals for these positions in 2012 (74%) and 2011 (72%) compared with 2010 (43%).

What types of jobs are the most difficult to fill? The top five most difficult positions to fill for the manufacturing industry are high-skilled technical positions (e.g., technicians and programmers) (91%), scientists (89%), engineers (87%), managers and executives (83%), and skilled trades (e.g., electricians, carpenters) (79%).


Organizations’ Financial Health



More than 50% of staff

21% to 50% of staff

11% to 20% of staff (2012 & 2011 data) * 10% to 20%

(2010 data)

10% or less (2012 & 2011 data) *Less than 10%

(2010 data)

6% to 10% of staff

1% to 5% of staff

Not applicable—did not lay off any staff

3%

22%

32%

43%

2%

14%

17%

66%

20%

25%

21%

3%

13%

12%

72%

18%

28%

26% 2012 (n = 445)2011 (n = 357)2010 (n = 341)72% (2012)

Thus far, what percentage of full-time jobs have been lost at your organization since the U.S. and global recession began in December 2007? Manufacturing Industry

Note: Percentages may not total 100% due to rounding. An asterisk (*) indicates 2010 data had different categories than 2011 and 2012 data: “Less than 10% of staff” and “10% to 20% of staff.”

66% (2011)


Thus far, what percentage of full-time jobs have been lost at your organization since the U.S. and global recession began in December 2007? Manufacturing Industry

Comparisons by organization sector

Privately owned for-profit organizations are more likely to have laid off no staff compared with publicly owned for-profit organizations.

Privately owned for-profit organizations

Publicly owned for-profit organizations Differences based on organization sector

30% 20%Privately owned for-profit >

publicly owned for-profit

Note: Only statistically significant differences are shown. Comparisons based on 2012 data.


Compared with 12 months ago, would you say your organization's overall financial health is improving, has not changed or is declining?Manufacturing Industry

Significant decline

Mild decline

No change compared with 12 months ago

Mild improvement

Significant improvement

5%

14%

22%

53%

6%

4%

19%

17%

40%

19%

2%

11%

14%

49%

24%2012 (n = 443)2011 (n = 359)2010 (n = 339)

Note: Percentages may not total 100% due to rounding.


Hiring



Is your organization currently hiring full-time staff? Manufacturing Industry

No

Yes

49%

51%

25%

75%

25%

75%

2012 (n = 444)2011 (n = 360)2010 (n = 335)


At what level(s) is your organization hiring?Manufacturing Industry

Executive/upper management (e.g., CEO, CFO)

Other management (e.g., directors, managers)

Nonmanagement salaried employees

Nonmanagement hourly employees

20%

54%

64%

85%

13%

52%

66%

86%

2012 (n = 331)2011 (n = 268)

Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were currently hiring full-time staff were asked this question.


At what level(s) is your organization hiring?Manufacturing Industry


Smaller organizations Larger organizations Differences based on organization staff size

1 to 99 employees (36%)

100 to 499 employees (66%)500 to 2,499 employees (69%)2,500 to 24,999 employees (81%)25,000 or more employees (82%)

Larger organizations > smaller organizations

Comparisons by organization staff size

Larger organizations (100 or more employees) are more likely to be hiring nonmanagement salaried employees compared with smaller organizations (1 to 99 employees).


At what level(s) is your organization hiring? (continued)Manufacturing Industry


Privately owned for-profit organizations are more likely to be hiring nonmanagement hourly employees compared with publicly owned for-profit organizations.






Publicly owned for-profit organizations are more likely to be hiring other management (e.g., directors, managers) compared with privately owned for-profit organizations.



46% 61%Publicly owned for-profit >privately owned for-profit

Publicly owned for-profit organizations are more likely to be hiring nonmanagement salaried employees compared with privately owned for-profit organizations.





Which of the following best describes, in general, the nature of full-time positions your organization is currently hiring?Manufacturing Industry

Note: Only respondents whose organizations were currently hiring full-time staff were asked this question.

Direct replacements of jobs lost (e.g., due to layoffs, attrition) since the recession began

New duties added to jobs lost (e.g., due to layoffs, attrition) since the recession began

Completely new positions

42%

10%

48%

54%

14%

32%

52%

12%

36%

2012 (n = 329)2011 (n = 263)2010 (n = 168)


Compared with the skills required for jobs lost since the recession began, do these completely new positions require any of the following skills?Manufacturing Industry

Note: n = Only respondents whose organizations were hiring full-time staff for completely new positions were asked this question.

Approximately the same types of skills

A mixture of new skills and the same types of skills

Completely new and different skills

21%

65%

14%

22%

67%

11%2012 (n = 118)2011 (n = 78)


Compared with the skills required for jobs lost since the recession began, do these completely new positions require any of the following skills?Manufacturing Industry


Privately owned for-profit organizations are more likely to require a mixture of new skills and the same types of skills for new positions compared with publicly owned for-profit organizations.






Publicly owned for-profit organizations are more likely to require completely new and different skills for new positions compared with privately owned for-profit organizations.





Recruiting Challenges



If the new jobs being created by your organization require new and different skill sets, how easy do you think it will be—or has been thus far—to find qualified individuals for those positions?Manufacturing Industry

Note: Percentages may not total 100% due to rounding. This question was asked only of respondents whose organizations were hiring full-time staff for positions with new duties added to jobs lost or completely new positions (see slide 16) that required either a mixture of new skills and the same types of skills or completely new and different skills (see slide 17).

Very difficult

Somewhat difficult

Somewhat easy

Very easy

3%

40%

44%

13%

9%

63%

24%

3%

10%

64%

25%

1%2012 (n = 130)2011 (n = 98)2010 (n = 95)


In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization?Manufacturing Industry

No

Yes

32%

68%

33%

67%

2012 (n = 318)2011 (n = 253)

Note: Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were currently hiring full-time staff were asked this question.


In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization?Manufacturing Industry


Privately owned for-profit organizations are more likely to be having a difficult time recruiting for specific jobs compared with publicly owned for-profit organizations.







Do you believe that your organization is facing global competition (i.e., competition from other countries) for jobs that the organization is having difficulty filling?Manufacturing Industry

No

Yes

73%

27%

86%

14% 2012 (n = 184)2011 (n = 148)

Note: Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.


Do you believe that your organization is facing global competition (i.e., competition from other countries) for jobs that the organization is having difficulty filling?Manufacturing Industry



Publicly owned for-profit organizations are more likely to believe that their organization is facing global competition compared with privately owned for-profit organizations.





Has your organization hired any workers from outside the U.S. in an attempt to fill key jobs that have been difficult to fill?Manufacturing Industry

No, but we have plans to do so in the next 12 months

No, but we are considering it

No

Yes

1%

4%

75%

20%

0%

5%

72%

23% 2012 (n = 204)2011 (n = 166)

Note: Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.



1 to 99 employees (7%)100 to 499 employees (13%)

2,500 to 24,999 employees (41%) Larger organizations > smaller organizations

Has your organization hired any workers from outside the U.S. in an attempt to fill key jobs that have been difficult to fill?Manufacturing Industry


Publicly owned for-profit organizations are more likely to have hired workers from outside the U.S. in an attempt to fill hard-to-fill jobs compared with privately owned for-profit organizations.






Larger organizations (2,500 to 24,999 employees) are more likely to have hired workers from outside the U.S. in an attempt to fill hard-to-fill jobs compared with smaller organizations (1 to 499 employees).


Has your organization hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill?Manufacturing Industry

No, but we have plans to do so in the next 12

months

No, but we are considering it

No

Yes

4%

18%

34%

44%

4%

16%

22%

59%

2012 (n = 190)2011 (n = 146)

Note: Percentages may not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.



1 to 99 employees (43%)100 to 499 employees (44%)

2,500 to 24,999 employees (94%)25,000 or more employees (92%)

Larger organizations > smaller organizations

Has your organization hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill?Manufacturing Industry


Publicly owned for-profit organizations are more likely to have hired U.S. veterans in an attempt to fill hard-to-fill jobs compared with privately owned for-profit organizations.






Larger organizations (2,500 or more employees) are more likely to have hired U.S. veterans in an attempt to fill hard-to-fill jobs compared with smaller organizations (1 to 499 employees).


In general, what basic skills/knowledge gaps do job applicants have in your industry?Manufacturing Industry

Other

History/geography

Humanities/arts

Government/economics

Foreign languages

Technical (computer, engineering, mechanical, etc.)

Science

English language (spoken)

Reading comprehension (in English)

Writing in English (grammar, spelling, etc.)

Mathematics (computation)

8%

1%

1%

2%

9%

10%

19%

31%

40%

40%

60%

9%

1%

1%

2%

8%

10%

22%

32%

39%

43%

52%

2012 (n = 176)2011 (n = 140)

Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.


In general, what basic skills/knowledge gaps do job applicants have in your industry?Manufacturing Industry


Privately owned for-profit organizations are more likely to report skill gaps in writing in English (grammar, spelling, etc.) compared with publicly owned for-profit organizations.






Publicly owned for-profit organizations are more likely to report skill gaps in science compared with privately owned for-profit organizations.





In general, what applied skill gaps do job applicants have in your industry?Manufacturing Industry

Other

Ethics/social responsibility

Diversity

Information technology application

Lifelong learning/self-direction

Creativity/innovation

Oral communications

Leadership

Teamwork/collaboration

Written communications

Professionalism/work ethic

Critical thinking/problem solving

7%

23%

15%

26%

25%

30%

33%

42%

45%

39%

39%

59%

7%

17%

19%

21%

26%

30%

31%

33%

36%

37%

49%

59%

2012 (n = 192)2011 (n = 155)

Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.


In general, what applied skill gaps do job applicants have in your industry?Manufacturing Industry



Publicly owned for-profit organizations are more likely to report skill gaps in leadership compared with privately owned for-profit organizations.




Publicly owned for-profit organizations are more likely to report skill gaps in creativity/innovation compared with privately owned for-profit organizations.




Publicly owned for-profit organizations are more likely to report skill gaps in diversity compared with privately owned for-profit organizations.




SHRM Poll: The Ongoing Impact of the Recession 2012 Update—Manufacturing Industry ©SHRM 2012

Specific Job Categories Organizations Are Having Difficulty RecruitingManufacturing Industry

Sales representatives (n = 114, 90)

Skilled trades (e.g., electricians, carpenters) (n = 158, 129)

Managers and executives (n = 155, 126)

Engineers (n = 153, 127)

Scientists (n = 46, 28)

High-skilled technical (e.g., technicians, programmers) (n = 145, 102)

74%

83%

80%

88%

72%

89%

67%

79%

83%

87%

89%

91%

20122011

Note: The chart represents “somewhat difficult” and “very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. No statistics are provided where the n is less than 20; therefore, the job category of “high-skilled medical” (n = 5 (2012), 7 (2011)) was excluded from this analysis. 2012 n is listed first in for each job category.

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Specific Job Categories Organizations Are Having Difficulty Recruiting (continued)Manufacturing Industry

Administrative support staff (n = 144, 113)

Hourly laborers (n = 182, 139)

Customer service representatives (n = 110, 87)

Drivers (n = 50, 37)

Production operators (n = 180, 140)

Accounting and finance professionals (n = 128, 97)

HR professionals (n = 101, 73)

17%

39%

28%

38%

56%

50%

64%

20%

36%

37%

40%

48%

51%

59%

20122011

Note: The chart represents “somewhat difficult” and “very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. No statistics are provided where the n is less than 20; therefore, the job category of “high-skilled medical” (n = 5 (2012), 7 (2011)) was excluded from this analysis. 2012 n is listed first in for each job category.

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Demographics



Demographics: Organization SectorManufacturing Industry

36


Other

Government

Nonprofit

Publicly owned for-profit

Privately owned for-profit

1%

0%

1%

34%

63%

2%

0%

0%

37%

61%

2012 (n = 421)2011 (n = 348)


Demographics: Organization Staff SizeManufacturing Industry

25,000 or more employees

2,500 to 24,999 employees

500 to 2,499 employees

100 to 499 employees

1 to 99 employees

5%

18%

27%

30%

20%

7%

22%

22%

33%

16%

2012 (n = 422)2011 (n = 343)

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Demographics: OtherManufacturing Industry

38

2012(n = 433)

2011(n = 344)

U.S.-based operations only 44% 49%

Multinational operations 56% 51%

2012(n = 340)

2011(n = 265)

Multi-unit headquarters determines HR policies and practices 29% 32%

Each work location determines HR policies and practices 6% 7%

A combination of both the work location and the multi-unit headquarters determine HR policies and practices

65% 61%

For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or both?

Does your organization have U.S.-based operations (business units) only or does it operate multinationally?

2012(n = 339)

2011(n = 266)

Corporate (companywide) 42% 49%

Business unit/division 28% 21%

Facility/location 29% 30%

What is the HR department/function responded for throughout this survey?

2012(n = 437)

2011(n = 351)

Single-unit organization: An organization in which the location and the organization are one and the same

28% 30%

Multi-unit organization: An organization that has more than one location

72% 70%

Is your organization a single-unit organization or a multi-unit organization?



SHRM Poll: The Ongoing Impact of the Recession:Manufacturing Industry

2012 response rate = 15%

2011 response rate = 13% Sample composed of 445 (2012) and 360 (2011) randomly selected HR

professionals from the manufacturing industry in SHRM’s membership Margin of error +/-5%

2012 survey fielded April 20-May 4, 2012

2011 survey fielded August 18-September 2, 2011

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Methodology

For more poll findings, visit www.shrm.org/surveys

Follow us on Twitter: http://twitter.com/SHRM_ResearchProject leader:Tanya A. Mulvey, survey research analyst, SHRM Research

Project contributors:Mark Schmit, Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, manager, SHRM Survey Research Center

Copy editor:Katya Scanlan, SHRM Knowledge Center

http://www.shrm.org/surveys

http://twitter.com/SHRM_Research