Surging auto sales pushing North American suppliers

Dustin Walsh

Published: July 23, 2012 6:00 am ET

Related to this story

Topics Automotive

DETROIT (July 23, 1 p.m. ET) — In the past year, IAC Group, the big interior supplier, has hired about 350 employees at its Belvidere, Ill., plant to supply interiors for the Dodge Dart and Jeep Patriot and Compass made at Chrysler Group’s plant there.

IAC also held a job fair this month in the Detroit area in search of more than 20 engineers and technical staff members.

Surging North American auto sales are pushing some suppliers to expand and hire more workers — steps they have resisted since the recession. Despite worries about declining demand in Europe, U.S. auto executives surveyed by advisory firm KPMG AG are bullish about their companies’ prospects.

“The survey results clearly demonstrate a U.S. automotive industry that is regaining confidence,” Gary Silberg, KPMG’s national auto industry leader, said in a statement. “Even though the overall economic recovery remains weak, that is not the case in automotive where pent-up demand for vehicles in the U.S. is expected to carry over for years.”

An increasing number of suppliers are running their plants flat out.

North American automotive plants are running at 88 percent capacity, industry analyst IHS Automotive Inc. estimates.

KPMG estimates that plant capacity use in the United States will hit 94 percent by 2018.

Industry executives have said demand for new cars and trucks should continue to drive sales since the average age of vehicles on U.S. roads is at an all-time high of almost 11 years.

Nearly three-quarters of the executives polled by KPMG said their companies will continue to hire people in the coming year, up significantly from the 62 percent in the 2011 survey.

In addition, 67 percent of those polled said their companies have significant cash, and almost the same number said they will invest that cash before year end, KPMG said.

But the executives surveyed are not predicting an overall economic turnaround for years, KPMG said.

More than 80 percent predicted the U.S. economy will remain flat or see only moderate improvement next year, with 60 percent saying a full recovery will not happen until 2014 or later.


Comments

Surging auto sales pushing North American suppliers

Dustin Walsh

Published: July 23, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Ohio molder Denbro Plastics moves to new location

September 29, 2014 6:17 pm ET

Logo products injection molder Denbro Plastics Co. has moved to another plant within Toledo, Ohio, to streamline production and improve efficiency.    More

Image

Japan's parts makers face challenges as carmakers expand supply base

September 29, 2014 11:01 am ET

For all their size and success, Japanese auto suppliers that rocketed to global dominance on the coattails of their No. 1 customer, Toyota Motor Corp....    More

Image

ZF, TRW combination creating a new player for autonomous autos

September 23, 2014 9:59 am ET

The era of autonomous vehicles is close at hand — and is already changing the auto industry in fundamental ways. The latest and biggest example?...    More

Image

Delphi buying connector maker Antaya

September 22, 2014 2:25 pm ET

Delphi Automotive plc will buy Antaya Technologies Corp., a Rhode Island company that supplies wire harnesses and other technologies that connect...    More

Image

Poland's Boryszew to work with Mitsui on lightweight auto parts

September 22, 2014 10:12 am ET

European plastics car parts maker Boryszew Group has signed a letter of intent to work with the Japanese investment and trading conglomerate Mitsui & ...    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events