June 09, 2006
Most U.S. Consumer Products Companies use Outsourcing
According to reports, more than two-thirds of US consumer products companies are outsourcing some portion of their workforce to third parties. Consumer products companies are concerned about rising energy costs and tight margins. They anticipate lower growth rates in the coming months. As the domestic economy is all set to surge further, consumer products executives are expecting revenue growth of 6.2 percent over the next 12 months.
Large consumer products companies are tightening their expenses because of energy costs. There is concern among companies on the rising energy price level. The impact of escalating energy prices can be seen in the hiring plans, gross margins and investment plans of the companies. Higher costs and limited price increases have led to a margin squeeze for consumer products companies. As energy costs have escalated further, leaders of consumer products companies are having a tough time to handle the pressure. Reliable Plant has published an article on the Same Topic.
Overall, consumer products companies expect the size of their workforce will decrease by an average of 3.4 percent over the next 12 months, attributable to deep cutbacks by several large companies and caution stemming from rising energy prices.
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