How the North American Auto Industry Can Leverage Temporary LaborJune 14, 2022
Temporary Labor, The Likely Solution for the Automotive Sector
The North American auto industry is facing some of the most complex labor shortages in history. While COVID-19 prompted lockdowns and some workers became sick, many auto manufacturers were left scrambling, leaning on skeleton crews to maintain operations. Even after two years into the pandemic, many auto manufacturers face ongoing absenteeism and labor shortages that are reaching critical levels. Temporary labor is set to address these challenges as business owners continue to seek solutions to North America’s labor issues.
For the business owners within the auto sector, an increase in wages or benefits may not resolve labor shortages that appear to have no end in sight. Temp workers are one of the remaining solutions that can help businesses address absenteeism for the short-term and secure financial success for years to come. As for the long-term outlook, the automotive sector will need to recruit and grow young talent, offering on-the-job training and ongoing education.
Why the Auto Industry is Facing Labor Shortages
The economy is being challenged as consumer demands surge, with a remarkably small number of workers entering the job force. Many entry-level or young workers across North America have had a change of heart in regards to their career path, opting to quit their current jobs and test the open waters of the job market. According to the 2022 Job Openings and Labor Turnover Report, the United States is experiencing roughly four million resignations per month, with close to 3% of the US workforce quitting in just December of 2021.
In other cases, workers have had to seek alternative employment that allows for flexibility to meet child and eldercare obligations. Many workers are also seeing an opportunity to take on new career paths that were once unavailable. As every industry competes for the attention of the average worker, the result is a deep buyer’s market for anyone seeking work. Careers in the automotive sector might not have the same appeal as they once did, as employees are often required to perform manual labor in close quarters with one another.
The auto industry, in particular, was faced with an aging workforce well before the pandemic began and is now finding itself unable to attract youth who want to work in auto manufacturing plants. Despite employers adjusting their offerings to attract more talent, working in an auto plant during a pandemic can be intimidating, even if the wages are higher compared to other industries. The result has many prospective workers choosing career paths that allow work-from-home options or roles in healthcare that can lead to further job training and advanced career paths.
How Temporary Labor Fits with the Automotive Industry’s Business Model
Ultimately, employers cannot predict the turnover patterns of their employees and must use temporary workforces that can address issues as they arise. By working alongside a temp agency, business owners can call upon workers when needed. Temporary workers can be dispatched with very little notice, allowing companies to address the unpredictable nature of supply and demand in 2022.
Further, at times when workers become sick or simply unable to return to the job site, temp agencies can recruit on your behalf and transport workers to your job site. Sourcing out talent also allows employers to take a close look at prospective full-time employees without the commitment of hiring them full-time. An entire workforce can be enlisted for short periods of time, helping employers address surges in demand and ultimately contribute to a healthy and efficient automotive supply chain. Talent can also be trained before entering the job site, with agencies working to ensure that temp workers are adequately prepared for the task at hand.
Temporary Labor Solutions Provided by AFIMAC
AFIMAC remains the global leader in the temporary labor space, offering labor solutions to a long list of industries, including the automotive industry. AFIMAC has worked closely with both small businesses and large corporations that require the services of temporary workers to maintain their operations and fulfill surges in demand that are complicating automotive sectors across North America.
Should your business be facing a critical lack of workers, AFIMAC can step in to provide a temporary workforce that can be transported to the job site with very little notice. By maintaining a database of skilled workers, AFIMAC can dispatch temp workers to remote and rural locations experiencing a critical labor shortage. Temporary workers can relieve burnt-out workers, support existing staff, and even step in when entire workforces strike against their employer. AFIMAC can protect your bottom line with flexible, temporary workforce arrangements tailored to your needs.
Reach out to us and fill out the form below to explore a long list of services that can address strikes, walk-offs, and general absenteeism with full-service temporary labor solutions.