A new survey of U.S. senior manufacturing executives shows that about two-thirds would outsource maintenance of factory equipment as a hedge against a downturn in the economy.  A total of 100 executives were polled in the survey, which was conducted by Nielsen Research.  The titles of the executives included CEO, CIO, Vice President and Plant Manager.  ATS (Advanced Technology Services) commissioned the research.

ATS, which pioneered the factory asset service business two decades ago, is a leader in providing managed services for production equipment maintenance and industrial parts repair for manufacturers. Last year ATS had record sales, and with the current industrial climate seeking more initiatives for cost efficiencies, forecasts call for another record in sales in 2008.

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.  That's where we add value and help contribute to our customers' bottom line."

Bellwether manufacturers like 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. For example, downtime is costly, which, according to the ATS survey, costs manufacturers on average $22,000 per minute when production stops.

ATS was started as a spin-off from Caterpillar Inc. in 1985.  It created a niche as the firm that large manufacturers such as Johnson & Johnson, Honda and Fortune Brands 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.