Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Plastics News China
  • Rubber & Plastics News
logo-pn-color
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • End Markets
    • FYI Charts
    • LSR World
    • Multimedia
    • NPE2021
    • K Show
    • Special Reports
    • Top materials of injection molders
      Recycled PET use by product category
      US PET, flexible packaging desintations
      Global fluropolymers additives market: CAGR
    • NPE exhibitors question handling of deposits for canceled trade show
      Exhibitors back NPE cancellation: ‘We couldn't take that risk'
      NPE2021 canceled as in-person event
      NPE reviews its options as pandemic prompts exhibitor to exit
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • What Keeps You Up At Night
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Polymer Points Live
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Videos
    • Galleries
    • Podcasts
    • CEO Issue
    • Best Places to Work
    • Processor of the Year
    • Rising Stars
    • Women Breaking the Mold
  • Opinion
    • The Plastics Blog
    • Kickstart
    • Heavy Metal
    • One Good Resin
    • BRICS and Plastics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Perspective: Making the best of working from home
      Nypro's Gordon Lankton left the plastics industry a better place
      Recognizing Plastek Industries for all-around excellence
      Let's look forward, rather than back, to mark COVID anniversary
    • Kickstart: Plastics ready to take flight on Mars
      Kickstart: Let's hear it for leftovers
      Kickstart: Big data, big bowls and consumer packaging
      Kickstart: A vexing vaccination question
    • Heavy Metal: Coronavirus edition, plus the work of working from home
      Don't put off succession planning
      What's a good gift for your cobot? Batteries?
      Here's some big ideas to mull over the holidays
    • PE resin trends highlighted in Shell report
      Dow's Lowry honored by World Economic Forum for sustainability work
      Africa impacts new colors from Ampacet
      Plaskolite marches into madness with its own online bracket
    • Climate debate in Washington increasingly includes plastic
      There was no choice but canceling NPE still a big deal
      The business case for producer responsibility
      Think divided government stalls plastics legislation? Think again
    • Want prices? Introducing historical resin pricing, now available in a downloadable form
      A new annual ranking: Top processor gains
      Thermoformers: Would you believe a 12 percent gain?
      Just how big is thermoforming in North America?
    • Working from home: Rugrats edition
      Nypro's Gordon Lankton left the plastics industry a better place
      Let's look forward, rather than back, to mark COVID anniversary
      Virtual pitfalls derail exhibits for builders' trade show
    • PEX pipe maker Uponor donates $30,000 for Texas storm relief
      Virtual pitfalls derail exhibits for builders' trade show
      PPI puts $200 bounty on exhumed HDPE conduit
      Raise the roof: Housing starts hit a 12-year high
    • Perspective: Making the best of working from home
      Perspective: The Materials Wars: Is plastic actually better?
      Perspective: Plastics manufacturers — a surprising contribution to sustainability
      Plastics industry business owners: Listen to your future workforce
    • Mailbag: Additional fees for electric vehicles ‘unfortunate'
      Mailbag: Where's the plastics industry's response to critics?
      Mailbag: Manufacturers struggling to follow COVID-19 safety rules
      Modernizing recycling infrastructure will benefit businesses as well as the environment
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
    • Maintenance can ensure efficient blender operation
      Dosing: Perfect for adding color
      Blending vs dosing: What you need to know
      Going low or high: Comparing volume
    • Colors and custom compounds
      In the laboratory: Compounding solutions
      Recycling content: Resins going ‘green’
      Compounding: Glass and other fillers
    • Dryer maintenance: Don’t err with air
      Dryers: Options for a shop’s process
      Dryer installation: Going central?
      Resins: Hygroscopic or non-hygroscopic
    • Electric injection molding presses: Efficiency is key
      Hydraulic injection molding machines
      Proper maintenance can prevent downtime
      Hybrid injection molding machines
    • Purging Hot runners: Open or closed methods
      Purging extrusion machinery
      Purging extrusion blow molding machines
      Purging: Chemical, abrasive and non-abrasive
    • Controls, special applications boost production, profitability
      Robot maintenance key for smooth operation
      High-speed robots: A rapid way to increase efficiency
      Robots: Every shape and size
    • Maintenance: Key for efficiency
      Shredders: Plastic in pieces
      Safety first for size reduction
      Granulators: The right fit
    • Video: Structural foam molding
      Structural foam molding: Flexibility for processors
    • Mold inventory: How many molds does a shop have?
      Molds: Innovation
      Mold changeover: Saving time and money
      How molds work
    • Labor: Apprenticeships may provide answer
      Internships: Solving the skills gap in-house
      College training, programs
      Lean Six Sigma: Transforming business operation
  • Events
    • Plastics News Events
    • Industry Events
    • Livestreams/Webinars
    • Ask the Expert
    • Polymer Points Live
    • Reifenhäuser Technologies Livestreams
    • 2020 Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
    • Polymer Points Live - April 2021
      Polymer Points Live - February 2021
      Polymer Points Live - January 2021
      Polymer Points Live - December 2020
    • Plastics in Healthcare 2020
    • Plastics News Executive Forum
    • Plastics in Automotive
    • Plastics News Caps & Closures
    • Plastics in Healthcare
    • Women Breaking the Mold Networking Forum
  • Resin Prices
    • All Resins
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Rankings
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Data Store
  • Directory
  • More+
    • Classifieds
    • Digital Edition
    • Newsletters
    • Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Processor of the Year submissions
    • Sponsored By Bandera
      Bandera US was born for the North American market
      Sponsored By Ensign Equipment
      Filling systems customized for any process or budget need
      KraussMaffei
      Sponsored By KraussMaffei
      KraussMaffei retools in US with investment from parent ownership
      Sponsored By Mitsubishi
      Innovative new technology from Mitsubishi Engineering-Plastics Corporation helps reduce emission footprints
    • KraussMaffei
      Sponsored By KraussMaffei
      KraussMaffei Retools in US with investment from Parent Ownership
    • Sponsored By ENGEL Machinery
      Tailored maintenance for injection molding machines and robots
      Sponsored By ENGEL Machinery
      Improve maintenance efficiency with e-connect.monitor
      Sponsored By ENGEL Machinery
      Maximum precision for lowest shot weights
      Sponsored By ENGEL Machinery
      Even more cost effectiveness for small precision parts
    • Shell Polymer
      Sponsored By Shell Polymers
      Food and beverage trends impacting the polymer industry
      Sponsored By Conexiom
      Use Sales Order Automation to free up time for CSRs to focus on customers, not manual entry
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
June 22, 1998 02:00 AM

PARTS SUPPLIERS HIT BY GM STRIKE

Joseph Pryweller PLASTICS NEWS STAFF
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Entering the third week, strikes at two General Motors Corp. plants already are wreaking havoc on plastic parts suppliers, leaving a trail of thousands of laid-off workers and concern over a worsening situation.

    Many suppliers fretted that a prolonged strike could yield a bottom-line disaster. At Toronto-based Versatech Industries Inc., several hundred workers were laid off at its Tarxien plant in Ajax, Ontario, and a PaintPlas Inc. facility, said Versatech President Rob Lee.

    Yet, a real problem may be brewing if the strike is not settled quickly, Lee said.

    ``Most of our plants will be going down in a week or two if the strike is still on,'' Lee said. ``The impact is too premature to tell ... It's putting pressure on our end, and we'd expect to have massive layoffs.''

    Automotive analysts have said the labor dispute could be devastating to GM and the industry. As of late last week, the strikes at plants in Flint, Mich., had idled 84,200 GM workers, or about 28 percent of the automaker's North American hourly work force. Both GM and the United Auto Workers have stood their ground.

    The strike also has put pressure on large material suppliers, including DuPont Automotive in Troy, Mich. While not yet facing layoffs, the firm saw resin shipments start to slow by the end of last week, said spokesman Terry Cressy.

    DuPont expects its shipments to tail off more dramatically this week if the strike goes on, Cressy said. DuPont shut several plants for unplanned maintenance while strike details are ironed out.

    ``That gives us a cushion of maybe two weeks,'' Cressy said. ``Hopefully, soon after the shutdowns, we'll be able to put production back on track ... But [the strike] will have a major impact on sales starting next week.''

    The production drop might have only just begun, especially for Tier 2 suppliers feeding components to larger parts producers.

    Freudenberg-NOK GP, a maker of plastic extruded seals and other parts, has laid off 90 workers from its Scottsburg, Ind., plant, which makes brake and chassis parts for Delphi.

    The problems could multiply if the strike slides down the supplier food chain in the next few weeks, said Sallianne Williams, vice president for global customer support with the Plymouth, Mich., company.

    ``I think the impact is just beginning to be felt,'' Williams said. ``It's the smaller, Tier 2 suppliers that have yet to really be affected.''

    Some suppliers, including Grand Rapids, Mich.-based Lacks Enterprises Inc. and Troy-based Budd Co. Plastics Division, have already shifted production away from GM projects and into work for other automakers.

    ``We do a fair amount of work with GM, but not enough to have an impact,'' said Budd spokesman Paul Flancbaum. Budd makes parts from sheet molding compound for GM. ``We can find other work for people to do in the plants.''

    Yet that can only happen for several weeks, said equity analyst David Andrea at Roney & Co. of Detroit. After that, inventory levels fill too fast to keep diverting production from GM work, he said.

    While the hourglass is losing sand at many supplier offices, others have already faced massive layoffs. GM unit Delphi Automotive Systems has laid off 4,800 workers at eight plants, said spokeswoman Jennifer Timkey at the Delphi's Warren, Mich., offices.

    Four of those closed plants — in Adrian and Grand Rapids, Mich.; Vandalia, Ohio; and Matamoros, Mexico — make plastic interior components that include instrument panel covers, interior trim and airbag covers.

    The reason for the shutdowns is also one of the industry keys to improved efficiency: just-in-time manufacturing. That means a finished part is immediately shipped for use instead of gathering dust on warehouse shelves.

    ``When a part is not needed on the other end, there's no need to produce and stockpile it,'' Timkey said.

    About 63 percent of Delphi's business is from GM, but the firm would like to lower that figure to half its sales by 2002, Timkey said.

    Other suppliers may wish they had more business outside GM. Seating suppliers Lear Corp. of Southfield, Mich., and Johnson Controls Inc. of Plymouth, Mich., were hit hard by the strike.

    Lear had laid off 1,700 people at seven plants by the end of the day June 18, while JCI had temporarily dismissed 600 workers. Of JCI's numbers, almost half, or 275 people, were laid off at Holland, Mich., Prince Corp., the JCI unit that assembles plastic interior parts.

    Neither company could speculate on future layoffs. Andrea, who follows Lear, said the Southfield parts maker lost between $10 million and $15 million last week in business to GM.

    Lear is not alone. Collins & Aikman Corp., a Charlotte, N.C., supplier, estimated that an ongoing strike would cost it as much as $30 million in lost sales a month, said spokeswoman Kim West.

    Meanwhile, United Technologies Automotive of Dearborn, Mich., announced its first strike-related layoffs. The injection molder of interior parts sent home 85 workers from its Traverse City, Mich., plant, which molds electrical switch housings for GM.

    The company plans to lay off another 115 workers at that plant this week if the strike progresses, said spokesman Tom Andrew.

    Fairlawn, Ohio-based GenCorp Inc. laid off 1,000 workers at two plants June 16, according to Rubber & Plastics News, a sister publication to Plastics News. The furloughed workers were at plants in Berger, Mo., and Welland, Ontario, that make rubber and plastic seating parts.

    ``I wouldn't be panicking yet,'' analyst Gregory Misztela of Griffiths McBurney & Partners in Toronto said. ``Usually, strikes are not prolonged more than a couple of weeks. It will have some effect on earnings, but it's not material yet. Just don't panic.''

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    logo-pn-color
    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber & Plastics News
    • Urethanes Technology
    • Plastics News China
    • European Rubber Journal
    • Tire Business
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • What Keeps You Up At Night
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
        • Polymer Points Live
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • FYI Charts
        • Current FYI
      • LSR World
      • Multimedia
        • Videos
        • Galleries
        • Podcasts
      • NPE2021
      • K Show
      • Special Reports
        • CEO Issue
        • Best Places to Work
        • Processor of the Year
        • Rising Stars
        • Women Breaking the Mold
    • Opinion
      • The Plastics Blog
      • Kickstart
      • Heavy Metal
      • One Good Resin
      • BRICS and Plastics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • Plastics News Events
        • Plastics News Executive Forum
        • Plastics in Automotive
        • Plastics News Caps & Closures
        • Plastics in Healthcare
        • Women Breaking the Mold Networking Forum
      • Industry Events
      • Livestreams/Webinars
      • Ask the Expert
      • Polymer Points Live
      • Reifenhäuser Technologies Livestreams
      • 2020 Caps & Closures Library
      • Plastics in Healthcare Library
      • Women Breaking the Mold Networking Forum Library
    • Resin Prices
      • All Resins
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Rankings
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Data Store
    • Directory
    • More+
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified
      • Digital Edition
      • Newsletters
      • Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Processor of the Year submissions