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Employment Agencies can add to the Growth in Manufacturing

Posted on Aug 25, 2020

While there are difficult and challenging times for many industries across all sectors of the U.S. economy, fortunately there may be some positive news. There are signs of stable growth among companies that manufacture or produce durable goods or products (those we can touch). Those industries have always moved up and down with the economy, but consumers are still consuming products and business are still purchasing inputs in to their finished products.

According to the Bureau of Labor Statistics (a division of the Department of Labor), as of August 7th, 2020, employment rose by 1.8 million in July, Employment in transportation and warehousing increased by 38,000 in July.  Manufacturing added 26,000 jobs in July, with both durable goods (+15,000) and non durable goods (+11,000) adding jobs, following gains totaling 597,000 over the prior 2 months.  In July, motor vehicles and parts added 39,000 jobs, which were partly offset by declines in fabricated metals, machinery, and computer and electronic products.

After two months of declines, average hourly earnings for all employees in manufacturing increased by 17 cents in July.  Average hourly earnings of production workers rose by 22 cents over the month.  Average weekly hours of all employees rose 0.7 hour in July to 39.7 hours.  For production workers, the average work week rose 0.8 hour in July to 40.6 hours.

With the demand for talent and employees who can help meet corporate manufacturing goals and customer demand, companies are continuing to partner with employment agencies to provide qualified employees at a fast pace.

There are many warehouses and manufacturing facilities that require a temporary employee’s skill and experience to fill an immediate need. These companies now focus on increasing their supply of temporary employees to meet increasing product demand.  Labor categories in demand are pick packers, shipping & receiving materials management, machine assembly, machine operators and production work.  Temporary employees will work right along with full time directly employed manufacturing employees.  The employment agency carefully matches employees who fit in with the company culture while finding the right talent for the right job.

Manufacturing clients of temp agencies used to only hire employment agency employees for projects originally viewed as temporary in nature, such as seasonal periods. But more recently, there has been an increase in the utilization of temporary/contract employees for the eventual filling longer-term skilled full time staffing needs.

A temporary employment agency provides qualified and adaptable employees, allowing a company’s production or distribution transition to run smoothly. This staffing augmentation tool works to the manufacturer’s advantage, keeping an ongoing work flow. 

Human beings are still needed in order to manufacture goods. Robots and machines have not taken over the world. After all, it takes people and minds to make and assemble the products we need and love.