Recession mfgupdate

SHRM Poll: The Ongoing Impact of the
Recession—Manufacturing Industry
2012 Update
June 22, 2012

The Ongoing Impact of the Recession:
Manufacturing Industry

Introduction
Key Findings
Organizations’ Financial Health
Hiring
Recruiting Challenges
Demographics
Methodology

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

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

3

Key Findings: Organizations’ Financial Health

 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.

4

Key Findings: Hiring

 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%).

5

Key Findings: Recruiting Challenges

 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%).

6


Organizations’ Financial Health

7

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

Not applicable—did not lay off any 26% 2012 (n = 445)
21%
staff 2011 (n = 357)
72% (2012)
28% 2010 (n = 341)
1% to 5% of staff 25% 66% (2011)

18%
6% to 10% of staff 20%

10% or less (2012 & 2011 data) 72%
66%
*Less than 10% (2010 data) 43%

11% to 20% of staff (2012 & 2011 data) 12%
17%
* 10% to 20% (2010 data) 32%
13%
21% to 50% of staff 14%
22%
3%
More than 50% of staff 2%
3%

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.”
8

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- Publicly owned for-profit
Differences based on organization sector
profit organizations organizations
Privately owned for-profit >
30% 20%
publicly owned for-profit

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

9

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

2012 (n = 443)
24%
2011 (n = 359)
Significant improvement 19%
6% 2010 (n = 339)

49%
Mild improvement 40%
53%

14%
No change compared with 12 months
17%
ago
22%

11%
Mild decline 19%
14%

2%
Significant decline 4%
5%

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

10


Hiring

11

Is your organization currently hiring full-time staff?

75%

Yes 75%

51%
2012 (n = 444)
2011 (n = 360)
2010 (n = 335)
25%

No 25%

49%

12

At what level(s) is your organization hiring?

86%
Nonmanagement hourly employees
85%

66%
Nonmanagement salaried employees
64%

2012 (n = 331)
52% 2011 (n = 268)
Other management (e.g., directors, managers)
54%

13%
Executive/upper management (e.g., CEO, CFO)
20%

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.
13

At what level(s) is your organization hiring?

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).

Smaller organizations Larger organizations Differences based on organization staff size

100 to 499 employees (66%)
500 to 2,499 employees (69%)
1 to 99 employees (36%) Larger organizations > smaller organizations
2,500 to 24,999 employees (81%)
25,000 or more employees (82%)


14

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

Publicly owned for-profit organizations are more likely to be hiring other management (e.g., directors, managers)
compared with privately owned for-profit organizations.
Publicly owned for-profit >
46% 61%
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.
61% 75%
Privately owned for-profit organizations are more likely to be hiring nonmanagement hourly employees compared with
publicly owned for-profit organizations.
91% 80%
15

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

36%

Completely new positions 32%

48%

12% 2012 (n = 329)
New duties added to jobs lost (e.g., due to 2011 (n = 263)
14%
layoffs, attrition) since the recession began
2010 (n = 168)
10%

52%
Direct replacements of jobs lost (e.g., due to
54%
layoffs, attrition) since the recession began
42%

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

16

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

11%
2012 (n = 118)
Completely new and different skills
2011 (n = 78)
14%

67%
A mixture of new skills and the same
types of skills
65%

22%
Approximately the same types of
skills
21%

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

17

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


Publicly owned for-profit organizations are more likely to require completely new and different skills for new positions
6% 18%

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.
76% 52%


18


Recruiting Challenges

19

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?

1%
2012 (n = 130)
Very easy 3%
2011 (n = 98)
13%
2010 (n = 95)
25%
Somewhat easy 24%
44%

64%
Somewhat difficult 63%
40%

10%
Very difficult 9%
3%

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).
20

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

67%
Yes
68%

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

33%
No
32%

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.
21

In general, in the current labor market, is your organization having a
difficult time recruiting for specific jobs that are open in your
organization?
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.
74% 58%


22

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?

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

27%

86%
No
73%

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.
23

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?


Publicly owned for-profit organizations are more likely to believe that their organization is facing global competition
10% 23%


24

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

23% 2012 (n = 204)
Yes 2011 (n = 166)
20%

72%
No
75%

No, but we are 5%
considering it
4%

No, but we have plans 0%
to do so in the next 12
months 1%

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.

25

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


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).


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


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.
Privately owned for-profit Publicly owned for-profit
organizations organizations
13% 40%


26

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

59%
Yes
44%

22%
No
34%
2012 (n = 190)
2011 (n = 146)
No, but we are 16%
considering it
18%

No, but we have plans 4%
to do so in the next 12
months 4%

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.

27

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


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).


1 to 99 employees (43%) 2,500 to 24,999 employees (94%)
Larger organizations > smaller organizations
100 to 499 employees (44%) 25,000 or more employees (92%)


Publicly owned for-profit organizations are more likely to have hired U.S. veterans in an attempt to fill hard-to-fill jobs
Privately owned for-profit Publicly owned for-profit
organizations organizations
53% 74%


28

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

Mathematics (computation) 52%
60%

Writing in English (grammar, spelling, etc.) 43%
40%

Reading comprehension (in English) 39%
40%

English language (spoken) 32%
31%

Science 22%
19%
Technical 10% 2012 (n = 176)
(computer, engineering, mechanical, etc.) 10%
2011 (n = 140)
Foreign languages 8%
9%

Government/economics 2%
2%

Humanities/arts 1%
1%

History/geography 1%
1%

Other 9%
8%
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.
29

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


Publicly owned for-profit organizations are more likely to report skill gaps in science compared with privately owned for-
profit organizations.
17% 34%

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.
49% 32%


30

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

Critical thinking/problem solving 59%
59%
Professionalism/work ethic 49%
39%
Written communications 37%
39%
Teamwork/collaboration 36%
45%
Leadership 33%
42%
Oral communications 31% 2012 (n = 192)
33%
Creativity/innovation 30% 2011 (n = 155)
30%
Lifelong learning/self-direction 26%
25%
Information technology application 21%
26%
Diversity 19%
15%
Ethics/social responsibility 17%
23%
Other 7%
7%
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.
31

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

Publicly owned for-profit organizations are more likely to report skill gaps in leadership compared with privately owned for-
28% 46%
Publicly owned for-profit organizations are more likely to report skill gaps in creativity/innovation compared with privately
owned for-profit organizations.
25% 43%
Publicly owned for-profit organizations are more likely to report skill gaps in diversity compared with privately owned for-
13% 28%
32

Specific Job Categories Organizations Are Having Difficulty Recruiting

High-skilled technical (e.g., technicians, programmers) 91%
(n = 145, 102) 89%

89%
Scientists (n = 46, 28)
72% 2012
2011
87%
Engineers (n = 153, 127)
88%

83%
Managers and executives (n = 155, 126)
80%

Skilled trades (e.g., electricians, carpenters) (n = 79%
158, 129) 83%

67%
Sales representatives (n = 114, 90)
74%

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.
33

Specific Job Categories Organizations Are Having Difficulty Recruiting
(continued)

59%
HR professionals (n = 101, 73)
64%

51%
Accounting and finance professionals (n = 128, 97)
50%

48% 2012
Production operators (n = 180, 140)
56% 2011

40%
Drivers (n = 50, 37)
38%

37%
Customer service representatives (n = 110, 87)
28%

36%
Hourly laborers (n = 182, 139)
39%

20%
Administrative support staff (n = 144, 113)
17%

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.
34


Demographics

35

Demographics: Organization Sector

61%
Privately owned for-profit
63%

37%
Publicly owned for-profit
34%

0% 2012 (n = 421)
Nonprofit
1% 2011 (n = 348)

0%
Government
0%

2%
Other
1%

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

36

Demographics: Organization Staff Size

16%
1 to 99 employees
20%

33%
100 to 499 employees
30%

22% 2012 (n = 422)
500 to 2,499 employees
27% 2011 (n = 343)

22%
2,500 to 24,999 employees
18%

7%
25,000 or more employees
5%

37

Demographics: Other

What is the HR department/function responded
Does your organization have U.S.-based for throughout this survey?
operations (business units) only or does it 2012 2011
operate multinationally? (n = 339) (n = 266)
2012 2011 Corporate (companywide) 42% 49%
(n = 433) (n = 344)
U.S.-based operations Business unit/division 28% 21%
44% 49%
only
Facility/location 29% 30%
Multinational
56% 51% Note: Percentages may not total 100% due to rounding.
operations
For multi-unit organizations, are HR policies and
Is your organization a single-unit organization practices determined by the multi-unit headquarters,
or a multi-unit organization? by each work location or both?
2012 2011 2012 2011
(n = 437) (n = 351) (n = 340) (n = 265)

Single-unit organization: An Multi-unit headquarters determines
29% 32%
organization in which the HR policies and practices
28% 30%
location and the organization
Each work location determines HR
are one and the same 6% 7%
policies and practices
Multi-unit organization: An
organization that has more 72% 70% A combination of both the work
than one location location and the multi-unit
65% 61%
headquarters determine HR policies
and practices
38

SHRM Poll: The Ongoing Impact of the Recession:

Methodology
 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

For more poll findings, visit www.shrm.org/surveys
Follow us on Twitter: http://twitter.com/SHRM_Research
Project leader:
Tanya A. Mulvey, survey research analyst, SHRM Research

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

Copy editor:
Katya Scanlan, SHRM Knowledge Center SHRM Poll: The Ongoing Impact of the Recession 2012 Update—Manufacturing Industry ©SHRM 2012
39

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