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Outsourcing
for Growth
By John Brandt
Manufacturers
with rising sales will look for outsourcing partners in 2012 to help meet rising
demand. Which activities are most commonly outsourced? Three critical
functions:
- Transportation
(88%
of plants in 2011 vs. 72% in 2010),
- Information technology (68% in 2011 vs. 53% in 2010), and
- Maintenance (62% in 2011 vs.
44% in 2010).
Activities
most likely to be entirely outsourced are transportation (52%), electrical
(15%), fabrication (14%), and information technology (13%). Activities most
likely to be kept in-house are purchasing (91% of plants outsource none of this
activity), customer service (89%), and HR management (79%).
Outsourcing (% of plants outsourcing activity)
|
Fabrication
|
|
Maintenance
|
|
Customer service
|
|
|
All
|
13.6%
|
All
|
5.0%
|
All
|
1.7%
|
|
Some
|
48.5%
|
Some
|
56.6%
|
Some
|
9.0%
|
|
None
|
37.9%
|
None
|
38.4%
|
None
|
89.4%
|
|
Assembly
|
|
IT
|
|
HR management
|
|
|
All
|
5.0%
|
All
|
12.9%
|
All
|
1.7%
|
|
Some
|
30.6%
|
Some
|
54.6%
|
Some
|
19.5%
|
|
None
|
64.5%
|
None
|
32.5%
|
None
|
78.8%
|
|
Electrical
|
|
Purchasing
|
|
Sales and marketing
|
|
|
All
|
15.3%
|
All
|
2.7%
|
All
|
2.7%
|
|
Some
|
42.0%
|
Some
|
6.6%
|
Some
|
25.3%
|
|
None
|
42.7%
|
None
|
90.7%
|
None
|
72.0%
|
|
Design and/or R&D
|
|
Transportation
|
|
|
|
|
All
|
5.6%
|
All
|
52.1%
|
|
|
|
Some
|
36.4%
|
Some
|
35.4%
|
|
|
|
None
|
58.0%
|
None
|
12.5%
|
|
|
What
will you outsource for growth in 2012?
_____________________________________________________________________________________
Contact
The MPI Group to learn more about the
2011/2012 MPI Manufacturing Study findings and the 2011/2012 Next Generation
Manufacturing Study findings.
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