Auto suppliers need equipment, workers

David Sedgwick
AUTOMOTIVE NEWS

Published: August 13, 2013 2:29 pm ET
Updated: August 13, 2013 2:31 pm ET

Related to this story

Topics Automotive

TRAVERSE CITY, MICH. — Buying equipment and adding workers are North American automotive suppliers' top priorities as production orders soar, according to a survey by the Original Equipment Suppliers Association.

But financing expansion or construction of factories ranked lower on the list, said David Andrea, the association's senior vice president of industry analysis, who described suppliers' strategies last week at the CAR Management Briefing Seminars here.

Plant "expansion is not considered a key action," notes the survey, which was based on responses by 96 companies in July. "As one respondent noted, 'We already have the footprint; now we need people.'"

According to the survey, suppliers' top priority is to buy production equipment, followed by hiring salaried and hourly workers. Plant expansions ranked fifth, while construction of plants was seventh.

The bottom line: Suppliers are willing to expand production but are leery of big investments, so automakers and suppliers will have to plan for tighter production capacity.

"I don't think anyone wants to go back to the time when we had 25 percent excess capacity," Andrea said. "But we do have to fix the production constraints for those at the upper end of their capacity."


Comments

Auto suppliers need equipment, workers

David Sedgwick
AUTOMOTIVE NEWS

Published: August 13, 2013 2:29 pm ET
Updated: August 13, 2013 2:31 pm ET

Post Your Comments


Back to story


More stories

Image

Plasan investing in capacity, jobs to supply auto market with carbon fiber

September 19, 2014 3:05 pm ET

Growth in the emerging automotive market for carbon-fiber composites has spurred a $29 million investment in a Walker, Mich., factory    More

Image

Toyoda Gosei expanding in Mexico

September 19, 2014 2:33 pm ET

Toyoda Gosei North America Corp. is investing $67 million in a 398,000-square-foot plant in central Mexico to supply the automotive industry with...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    More

Image

Smartphone work adds 52 percent to sales for China's Eva Precision

September 18, 2014 4:37 pm ET

Growth in supplying the smartphone and automotive industries helped Chinese processor Eva Precision Holdings Ltd. push injection molding sales up 52...    More

Image

Cascade Engineering founder Keller to step down as CEO

September 16, 2014 8:33 pm ET

Cascade Engineering Inc. is undergoing a transition as President Mark Miller will also add the role of CEO, replacing founder Fred Keller, who has led...    More

Market Reports

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

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

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

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

More Events