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
    • Resin pricing news
    • 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
    • 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
    • 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
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • 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
April 17, 2019 02:00 AM

Automotive tooling suppliers expect growing business in 2019

Bill Bregar
Senior Staff Reporter
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Fiat Chrysler Automotive
    Fiat Chrysler Automotive workers install the instrument panel on a 2019 Ram 1500 truck in Sterling Heights, Mich.

    The North American automotive tooling sector had a soft start in the first quarter, but business should pick up in the second half of 2019, according to a report from Harbour Results Inc. and the Original Equipment Suppliers Association.

    Consultant Laurie Harbour expects the North American auto industry will spend will be about $8 billion on tooling this year.

    "However, there are a number of factors, including tariffs and automaker restructuring, that could significantly impact the industry and tooling spend," she said. "As a whole, the tooling industry is slow, but we are seeing some shops that remain busy — primarily because they have diversified their customer base."

    The Q1 2019 Automotive Tooling Barometer conducted by Southfield, Mich.-based Harbour Results surveyed companies producing both plastics molds and stamping dies. Washington-based OESA represents automotive original equipment suppliers.

    The report, issued April 10, said mold shops saw a slight increase, 2 percent, in utilization rates in the first quarter over the fourth quarter of 2018, growing to 79 percent from 77 percent. Utilization at die shops dropped drastically to 74 percent, from 85 percent in the fourth quarter.

    Harbour said that drop could be an indicator that mold shop utilization could dip in the near future, because dies require a longer lead time than molds.

    Work-on-hold continues its upward trend, with an average of 12.6 percent, driven by several automotive program delays, the report said. Based on those factors, tool shop owner sentiment dipped to 62 percent, the lowest point recorded since that measurement started in 2016.

    The survey also looked at investment strategies.

    Harbour Results Inc.
    Harbour

    "Across the tooling industry, we expect investment from 2018 to 2019 to remain relatively flat," Harbour said. "Shops are investing money in improving their business, but much of the focus is on process improvement and software purchases such as CAM, scheduling and machine monitoring tools."

    Profitability is still within the "good range," but on average, because of the industry slowdown, tool shop profitability is down, the survey said.

    Efforts also are continuing in worker hiring. Despite decreased sales from 2017 to 2018 at mold and die shops, both parts of the tooling sector made solid efforts to invest in design talent in 2018, the report said. In 2019, mold builders are planning to contribute 5.2 percent of revenue toward capital expenditures, compared to 5.6 percent in 2018. Die builders expect to invest 4 percent, up from 3.9 percent.

    The survey includes mold shops (68 percent) and die shops (20 percent), with 87 percent of respondents coming from the United States and Canada. A small number are from Europe and Asia. Shops with annual sales ranging from less than $5 million to more than $40 million were represented, with the largest percent from the $10 million to $20 million range.

    "With continued uncertainty throughout the automotive industry due to trade concerns, tariffs and program delays, we anticipated there would be a Tooling Barometer sentiment dip," said Julie Fream, president and CEO of the Original Equipment Suppliers Association, a division of the Motor & Equipment Manufacturers Association.

    RECOMMENDED FOR YOU
    Numbers That Matter Live — sign up for the next live
    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
    ExxonMobil weighing options for more chemical recycling capacity
    2
    Wilbert Plastic Services adjusts to changes with new owner, leadership
    3
    PepsiCo on a ‘multiyear journey' toward bioplastics
    4
    After years of challenges, can secondary sortation take off?
    5
    Biden sets US goal to replace 90% of plastics with biomaterials
    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
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • 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
        • 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
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • 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