Manufacturing Leaders Recognize Outsourcing Maintenance Drives Cost Savings

In a recent survey of 101 automotive manufacturing executives—spanning parts suppliers, engine makers, and OEMs—majority respondents highlighted the staggering cost of production downtime, citing an average of $22,000 per minute, with some estimating costs up to $50,000 per minute.

Given these figures, keeping production lines running has become a top priority. When asked which factory service could deliver the greatest productivity gains if outsourced, 53% chose production machine maintenance. This service not only repairs equipment but also delivers predictive and preventive care that keeps factories operating at peak efficiency.

Other areas identified for outsourcing include tool‑room management and spare‑parts storage, as companies seek to streamline operations and reduce internal overhead.

ATS, in partnership with Nielsen Research, surveyed senior leaders (CEO, CIO, CFO, CTO, EVP) from manufacturers with revenues ranging from $10 million to over $5 billion. Participants represented a broad spectrum of the automotive supply chain—from body and trailer makers to electric and electronic component producers.

Notably, 70% of respondents said they would outsource a department if it meant eliminating the burden of recruiting skilled workers. A prior study noted that a shortage of qualified labor could cost companies an average of $50 million, underscoring the financial incentive to outsource.

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