Case Study: Managed Labor Keeps the Gears Moving for Auto Parts Manufacturer
September 26, 2019
Consistent labor in the manufacturing industry can be hard to come by and even harder to retain. With industry turnover rates that often exceed 400% for temporary workers, utilizing managed labor is becoming an increasingly popular solution. When one automotive supplier in Chicago needed a more permanent and efficient way to fill gaps in its workforce for non-core jobs, it contacted LACOSTA Facility Support Services.
Comprehensive Labor Solutions
A minority and woman-owned Chicago-area provider of managed labor services, LACOSTA offers a variety of support including janitorial services, material handling, warehouse operations, line labor, and more. On average, outsourcing managed labor decreases turnover by over 30%, offering companies a more stable method of staffing that is cost-effective and strategic.
With LACOSTA, an onsite LACOSTA manager works directly with the business to determine KPIs as well as current workforce pain-points. The managers oversee LACOSTA team members, acting as a liaison between the LACOSTA crews and the client. For the automotive supplier, LACOSTA provides multiple staffing solutions, including:
- Janitorial services
- Specialty painting and floor coating
- Stores inventory, receiving and management (parts crib)
- Manufacturing support
- Wastewater plant testing
- Routine burn-off every 12 hours
- Filter changing
LACOSTA has worked with this supplier since 1999, helping them to scale the business over the last 20 years without the stress of sourcing and retaining talent for these ancillary positions. This kind of client tenure is typical of LACOSTA as the company focuses on ending staffing shortages and supplying fully trained workers, unlike many temp agencies. Clients receive exceptional and consistent service, decreased labor costs, and a “can do” attitude that is a characteristic of the LACOSTA culture.
“It really comes down to their service,” said a manager with the automotive supplier. “Their quality of work is good, and (their attitude is) ‘Whatever you need, we can make that happen.’”
Highlights of the Case Study
It’s not just the attitudes that make LACOSTA’s outsourced labor a winning solution. There’s a cost savings built-in as well, including:
- Not having to hire three full-time shift managers
- LACOSTA-provided training
- Administrative costs and overhead savings
“That’s the metric that really impacts us,” said the manager. “I could hire all these people and have them work for us, but my labor costs would be higher, plus administrative costs and overhead.”
LACOSTA also saves the automotive manufacturer on costs related to turnover, training and development and more as it provides what is essentially a permanent solution to the company’s workforce needs.
Read our case study to learn the full details of how the LACOSTA model helps this client save time and money while filling important workforce gaps with reliable, well-trained staff.
To talk to a LACOSTA representative about what our model can do to help close the gaps in your workforce needs, give us a call or click on the link below.