Economy drives manufacturers to go Lean and outsource more non-core functions


Feb 13, 2009

Manufacturing leaders and plant managers are looking to extend the performance of their production assets. A majority of these manufacturing leaders say that they would outsource non-core functions, specifically the maintenance of their production machinery and assets, in order to bolster against recession, according to a survey by Advanced Technology Services Inc. (ATS), conducted with Nielsen Research.

In the survey of 100 U.S. senior manufacturing executives with titles of CEO, CIO, vice president and plant manager, two-thirds said that they would outsource maintenance as a hedge against a downturn in the economy.

The plant asset maintenance market is sized at $124 billion and growing, according to analyst firm Frost and Sullivan. Strategic factory maintenance has become an imperative when access to credit is tight, new orders are down and businesses must put off making new capital purchases.

The ATS white paper, "Why Outsourcing Maintenance is Your Best Hedge in A Down Economy," provides guidance on what companies can do now to extend the performance of their factory assets and prepare for economic recovery. Visit to download a copy.