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Manufacturing turns to leaner production

NEW YORK (UPI) -- U.S. workers have more than the economy to fear as employers work towards improved efficiencies that cut back on the need for labor, a private study showed.

A survey conducted by RSM McGladrey found 61 percent of manufacturers were turning to "lean" production practices which creates smoother flow in factories and cuts down on excess inventory, USA Today reported Monday.

Manufacturing has lost 2 million jobs during the recession and production is down 14 percent. Even so, mattress maker Sealy, which adopted a "lean" production strategy five years ago, found net sales down 14 percent in the third quarter compared to July through September a year ago, while its gross profit margin rose from 40.5 percent to 41.8 percent.

Nationally, productivity per labor hour rose 4.9 percent in the second quarter, the sharpest gain since 2005. Much of that is due to "lean" manufacturing, IHS Global Insight economist Brian Bethune said.

Copyright 2009 by United Press International

This news arrived on: 11/02/2009

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