Hiring Spree for US Auto Industry?

The auto industry is about to go on a hiring spree as car makers and parts suppliers race to find engineers, technicians and factory workers to build the next generation of vehicles. The new employees will be part of a larger, busier workforce. From coast to coast, the industry is in top gear. Factories are operating at about 95 percent of capacity, and many are already running three shifts. As a result, some auto and parts companies are doing something they’ve been reluctant to consider since the recession: Adding floor space and spending millions of dollars on new equipment.

 

“We’re really bumping up against the edge,” says Michael Robinet, managing director of IHS Automotive, which forecasts auto production. “So it really is brick-and-mortar time.”

 

The auto industry’s stepped-up hiring will help sustain the nation’s job growth and help fuel consumer spending. On Friday, the government said U.S. employers added 175,000 jobs in May, roughly the monthly average for the past year and a sign of the economy’s resilience. At 7.6 percent, U.S. unemployment remains well above the 5 percent to 6 percent typical of a healthy economy. Growth is still modest, in part because of higher taxes and government spending cuts that kicked in this year and weak overseas economies. But the housing market is strengthening, and U.S. consumer confidence has reached a five-year high.

 

The auto industry’s outlook is bright. Vehicle sales for 2013 could reach 15.5 million, the highest in six years. To meet that demand, automakers must find more people. Hundreds of companies that make parts for automakers have to hire, too, just to keep up.

 

“As volume goes up, we will really need to add heads,” says Mel Stephens, a spokesman for Lear Corp., which makes automotive seats.

 

From January through May, automakers and parts companies hired 8,000 workers, a relatively slow rate. But the pace is picking up. The Center for Automotive Research expects the industry to add 35,000 over the full year. The hiring plans are widespread. Chrysler Group LLC, Honda Motor Co., General Motors Co., Mercedes-Benz and Ford Motor Co. plan to add more than 13,000 people this year. Large parts companies such as Lear, BorgWarner Inc. and TRW Automotive Holdings Corp. are hiring at factories and research centers. Smaller suppliers are adding jobs as well.