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

Chinese auto suppliers growing in US

July 24, 2014 4:17 pm ET

Two China-based automotive suppliers are expanding in the U.S., according to information released by the Michigan Economic Development Corp.    More

OSHA probes alleged asthma link to Lear's Selma, Ala., plant

July 23, 2014 11:58 am ET

U.S. foam manufacturer Renosol Seating LLC is being investigated following allegations its workers are at risk of asthma from TDI exposure at its...    More

Image

Illinois injection molder expands

July 21, 2014 1:23 pm ET

Automotive supplier All-Rite Industries Inc. has added two new injection molding machines to its operations.    More

Image

More head-up displays going into cars, with improved information, graphics

July 21, 2014 10:48 am ET

Head-up displays with "augmented reality," the technology that employs much of the windshield as a display area for data and images, is poised to...    More

Image

This is one bump that looks good on a car

July 18, 2014 1:34 pm ET

PSA Peugeot Citroen Group is using plastic for both design and protection on the exterior of one of its newest cars.    More

Market Reports

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

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

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

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

More Events