MRO Magazine

Manufacturers say outsourcing maintenance will keep plants viable

Peoria, IL - Manufacturers in the United States are looking to outsource the maintenance of their factory assets t...


Peoria, IL – Manufacturers in the United States are looking to outsource the maintenance of their factory assets to bolster their plant operations against recession, according to the results of a new report by Advanced Technology Services Inc. (ATS) conducted with Nielsen Research.

In the survey of 100 U.S. senior manufacturing executives, with titles of chief executive officer, chief information officer, vice-president and plant manager, a majority of those surveyed – about two-thirds – say they would outsource maintenance as a hedge against a downturn in the economy.

Bellwether manufacturers such as Caterpillar, Eaton, Honeywell and others have already adopted this recession-hedging strategy in many plants. While staying focused on their core competencies, these companies have outsourced the care and maintenance of their factory assets to ATS.

Downtime is costly; according to the ATS survey, it costs manufacturers on average $22,000 per minute when production stops.

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According to ATS president Jeffrey Owens, “when the nation faces an economic slowdown, manufacturers seek strategies to improve productivity and profitability and turn to outsourcing non-core functions to care for their most valuable assets.”

ATS, started as a spin-off from Caterpillar Inc. in 1985, created a niche as a firm that large manufacturers can turn to for outsourcing the care and maintenance of factory assets. ATS is also expanding its territory, having established operations in Mexico and the United Kingdom, and is making plans to enter China.

For more information, visit www.advancedtech.com.