Temporary working rises in manufacturing as the sector shows signs of recovery

The number of temporary workers employed within manufacturing has risen for the second time this year according to data from de Poel, the UK’s number one procurer of temporary agency labour. 

The figures from de Poel show that the sector could be returning to growth in the first quarter of 2012. The data shows that the number of hours worked by temporary staff has increased year-on-year by 35% in January and year-on-year by 48% in February as the manufacturing sector has increased its labour needs to support improved levels of output. Reports out by the Purchasing Managers' Index (PMI)* showed levels of activity in manufacturing were at its highest for eight months in January 2012 thanks to a rise in new orders and an increase in production.

John Salisbury, Managing Director, de Poel, comments: “Despite signs that the manufacturing sector is picking up, it is early days and we will have to wait to see if this period of growth is sustainable.

“Temporary workers are a good resource to fill skills gaps and a great way to respond to changing demands in the market without the financial commitment of using permanent staff.

“However, we’re finding that many organisations are still not managing their temporary agency spend efficiently, as they have no insight into how much they spend on labour or, where they allocate their spend due to the disjointed nature of the temporary agency market. Managing temporary agency spend tightly is critical, especially for manufacturers trying to survive in today’s uncertain climate, and can be done easily by introducing standard pricing structure and service level agreements. Operating a system of control is essential to ensure companies remain compliant with labour regulations such as the Agency Workers Regulations (AWR).”

Data from de Poel, shows usage of temporary labour rose by 79% within the Business Services sector, 30% within Care and 4% in Construction. Facilities Management and Logistics sectors reduced their use of temporary labour during February 2012 by 33% and 27% respectively.

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*PMI report - http://www.bbc.co.uk/news/business-16833556