Tier 1 rebate policy bad biz, says AMBA For 27 years the American Mold Builders Association has helped its member companies set the standards for good business practices. This has resulted not only in the growth of individual companies, but in the mold-making industry as a whole.
The recent decision of Lear, Visteon and other Tier 1 automotive suppliers to "request" rebates on purchases — not only current purchases but those from 12 months ago — could have disastrous consequences for many mold shops.
What that amounts to is a poor business practice. It is well-known that mold makers generally operate at less than 5 percent pretax profit, as has been noted in several commentaries. Based on those profit levels, it is not feasible for mold shops to give back 3-5 percent, essentially wiping out their profits.
AMBA is encouraging its members to do what is in the best interest of their individual businesses, keeping in mind that making a fair profit is key to keeping their businesses alive and well, and growing. Profitability must be a primary concern for every member company.
AMBA shares similar concerns for its membership as expressed by other industry associations. Additionally, in the interest of fairness, we would like to know if these Tier 1 suppliers are requesting the same rebates from their mold suppliers in China, Taiwan and other countries where they purchase molds.
Mold makers generally have done their best to provide a good product at a fair price. They've made efforts in recent years to work with their customers to find ways to reduce the costs of manufacturing, while increasing productivity and efficiency in both their own shops and those of their customers. However, to ask them to retroactively "buy" the business from the Tier 1s is going too far.
After all, a shop can only buy so much business before the inevitable happens: It goes out of business.
American Mold Builders
Proposed OSHA rules not based on need
Regarding your Dec. 6 Viewpoint, "Ergonomics rules should go forward," I am saddened that your publication chooses to propagandize in favor of wasteful government intervention.
Neither you, nor your OSHA friends, can support a claim that injury rates are getting worse instead of better. Insurance premiums and the self-interest of workers and employers are effective and adequate controls. A large number of "workplace injuries" are for conditions not medically recognized earlier in this decade. Their inclusion would cause injury rates to dramatically increase if the current system were not self-correcting.
You suggest changes to "include an effective mechanism for rooting out fraud." Prove that in Medicare, welfare, or Americans with Disabilities programs first, and then you will have some credibility. In the meantime, I will ride my time machine to the airport and catch a plane to Jupiter.