Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
      • 2023 winners
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • Bioplastics Live
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Resin Prices Overview
    • Commodity Thermoplastics
    • High Temperature Thermoplastics
    • Engineering Thermoplastics
    • Recycled Plastics
    • Thermosets
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
June 02, 2014 02:00 AM

Analyst: Tooling shortage should inspire firms to reevaluate their businesses

Kerri Jansen
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Plastics News file photo
    Laurie Harbour

    MILWAUKEE — With an anticipated tooling shortage on its way in coming years, toolmakers should evaluate their own businesses and look at ways to best prepare for future demand, says Laurie Harbour.

    Last fall, her firm Harbour Results Inc. released its vendor tooling study identifying a $6 billion capacity gap between coming demand and current production. Harbour discussed ways toolmakers can maximize capacity at American Mold Builders Association's annual convention, held May 14-16 in Milwaukee.

    According to the study, in 2012 the North American automotive sector spent $9.25 billion on tooling, both plastic molds and dies; by 2018, they'll need $15.2 billion. Though those numbers — which Harbour considers to be conservative — are for automotive, all industries can anticipate a similar gap, she said.

    The number of tools per vehicle grew 20 percent between 2000 and 2013, and automakers expect that to grow another 25 percent by 2020, Harbour said. As the industry ramps up for increased sales and more new vehicles per year, toolmakers will feel increased pressure to produce while the OEMs they supply look to keep their costs down.

    Though toolmakers face many external challenges to getting a tool done correctly and on time, about 10 percent of that gap is capacity toolmakers control, she said. One way automakers maximize their efficiency is to define a niche in which they can excel, she said.

    “You have to ask yourself, ‘How do I make improvements? What do I do to differentiate myself so that I can survive and thrive in the industry?'” she said.

    “Right now, I think companies have to really revisit and say, ‘What industry do I really want to be in and what's my role in it?' And find your niche or what your unique market is.”

    Specializing in a particular area can improve a business' hit rate, with less time wasted on quotes that go nowhere, and give OEMs another reason to keep tool production in the U.S. instead of sending it overseas.

    Harbour's team found an average hit rate among automotive tool makers of around 4-5 percent, she said. A company can improve that number by finding out what they can excel in, talking to their customers about what they're looking for, and developing that area of their business.

    “Those companies that have done a really good job carving out their niche and creating partnerships, they actually are seeing a much higher hit rate,” she said.

    Another way to improve efficiency is to collect data on the company's performance, Harbour said. Monitoring data allows a company to seek out wasted time and capacity and solve those problems.

    “The biggest thing that we find in shops is rework hours, rework costs, machines that are not running at the uptime that they should be running at … unmanned time, planned hours vs. actual hours — gather that information and data and let the data tell you what needs to be done,” she said.

    Though obstacles in the process are unavoidable, tool makers should focus on things they can control to best take advantage of future demand, Harbour said.

    “I get that … program delays and completeness of data and unreasonable targets and all of those things have a huge effect on you and you have no control over that,” she said. “But … in terms of how I schedule, how I manage my rework and my quality loops, matching skills and running machines in an unmanned condition, machining programming and setup — all of these things are things you control and allow you to maximize the use of this production as much as you can. Ultimately this is the goal for every tool shop.”

    RECOMMENDED FOR YOU
    Treaty talks end with plans for a draft agreement, but hurdles remain
    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]

    Most Popular
    1
    Treaty talks end with plans for a draft agreement, but hurdles remain
    2
    Polymer Resources expands New York compounding plant
    3
    PP recycler PureCycle sees Ohio plant as springboard for growth
    4
    Smith & Wesson confirms closure of molding site by end of 2024
    5
    Sigma Plastics Group expands stretch film capabilities
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    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.

    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 News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. 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
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
          • 2023 winners
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • Bioplastics Live
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Resin Prices Overview
      • Commodity Thermoplastics
      • High Temperature Thermoplastics
      • Engineering Thermoplastics
      • Recycled Plastics
      • Thermosets
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified