Auto companies are planning on expanding their business operations following an increase in revenues and strong balance sheets.
According to a recent survey by KPMG, there has been an increase in vehicle demand, and automotive executives are expecting to see a jump in domestic headcount and expand facilities in years moving forward.
The 2012 KPMG Automotive Industry Outlook also revealed that two-thirds of respondents report that they have added personnel over the last year and 72 percent said their companies will continue hiring more domestic employees in the coming years. The 72 percent reported is a significant increase from the 62 percent seen in KPMG's 2011 survey
"The survey results clearly demonstrate a U.S. automotive industry that is regaining confidence," said Gary Silberg, national automotive industry leader for KPMG. "Even though the overall economic recovery remains weak, that is not the case in automotive where pent-up demand for vehicles in the U.S. is expected to carry over for years. As a result, auto companies and suppliers are ramping up their hiring and production activities, and investing heavily in new products and facility expansion."
The survey also shows that 23 percent of company executives believe their businesses will increase personnel by more than 7 percent, while 21 percent predict the range will be 4 to 6 percent and 28 percent expect a 1 to 3 percent increase.
Silberg also reported that the industry has received significant cash on hand and the companies who are holding on to the profits are putting it to use.
"We are hearing from U.S. automakers that they are poised for growth, but are struggling with their ability to find the right people with the right technical skill sets for jobs they are looking to fill," added Silberg. "This is becoming an increasing cause for concern, not just for auto companies, but for many companies in the manufacturing sector. It remains to be seen how companies will fill the gap."
Bridgestone Tire Company also recently announced that it plans to expand its Polish tire plant to increase the production capacity of truck and bus radial tires.