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

Automakers look under the hood for the next lightweighting opportunities

August 20, 2014 1:06 pm ET

The automotive industry's current favorite target for lightweighting efforts is the powertrain, according to a recent survey.    More

Image

Cooper-Standard JV to focus on Asia

August 20, 2014 10:17 am ET

Cooper Standard Automotive Inc. is forming Cooper Standard Inoac Pte. Ltd. — a joint venture with Inoac Corp. of Japan — to expand the...    More

Image

Ohio molder sold to private equity firm

August 19, 2014 5:23 pm ET

Private equity firm TVV Capital of Nashville has acquired injection molder Design Molded Plastics Inc. for an undisclosed price.    More

Image

Germany's Bolta building $50 million plating plant in Alabama

August 19, 2014 2:21 pm ET

A German company is setting up a plastics chrome plating plant in Tuscaloosa, Ala.    More

Image

RTP expands very long fiber thermoplastic production to Mexico

August 19, 2014 9:47 am ET

RTP Co. has introduced very long fiber reinforced compounds at its Monterrey, Mexico, facility.    More

Market Reports

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

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

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

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

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

More Events