Kickstart: Adding US-made content to 'American' cars

In its annual list of the most American-made cars (Ford Motor Co.'s Lincoln Corsair took the top spot with 72 percent U.S. and Canadian content) the Kogod School of Business at American University also noted a trend in supply chains: International automakers have been boosting their percentage of U.S. content in recent years, while U.S.-based car makers have decreased theirs.

Since 2015, Volkswagen, Toyota, Nissan, Honda, Hyundai and Kia have all increased their U.S. content. GM, Ford and Chrysler owner Stellantis have reduced their U.S. content — but all of the "Big Three" carmakers top 60 percent for U.S. content, while only Honda tops 50 percent for American-made supply base out of foreign-based carmakers.

"This reveals an increasing focus from foreign manufacturers on increasing their U.S. manufacturing footprint," the Kogod report states, adding that NAFTA trade rules had led U.S.-based carmakers to invest in suppliers and production in Mexico in the past.

Honda now sources 57 percent of its U.S. vehicles from U.S. sources, up from 50 percent in 2015. Toyota sources 32.5 percent from the U.S., up from 27.5; Nissan is at 28 percent, up from 22 percent; Hyundai and Kia were at 25.7 percent, up from 17.5 percent; and Volkswagen was at 11.4 percent, up from 8.2 percent.

Natural gas prices have dropped to levels seen before Russia invaded Ukraine in February 2022, but that doesn't mean recovery is in sight for industries relying on gas supplies, including plastics.

Wholesale prices for natural gas on Jan. 3 were about 76 euros per megawatt hour, down from a high of 340 euros per megawatt hour in August, The New York Times reports.

Experts said that drop was due to both milder temperatures in Europe — reducing demand for gas used for heating — and ramped up supplies for alternatives to Russian gas.

But higher prices during the summer — and concerns about an expected recession — had already prompted materials companies in Europe to limit production, which in turn helped to decrease demand through the early winter months.

David Platt writes in our sister paper Sustainable Plastics that prices for thermoplastics dropped in November due to decreased demand and plentiful supply.

Automation is growing in importance throughout manufacturing, and thermoforming is no exception.

During a Q&A with Editor Don Loepp, leaders of the Society of Plastics Engineers' thermoforming division said investing in new equipment is key to growth.

"The drive for productivity and the reality of today's labor market is accelerating adoption of automation," Chairman Ed Probst of Probst Plastics Consulting LLC in Milwaukee said. "Both roll-fed and cut sheet thermoforming plants can be uncomfortable due to the heat generated by the process. Add in the move to 24/7 processing with the challenge of staffing those shifts and the window of opportunity for robotics gets bigger and bigger."

Labor shortages, combined with an aging workforce, also are prompting companies to invest in automation faster than they'd planned, added Stephen Zamprelli, prior chair and vice president of Formed Plastics Inc. in Carle Place, N.Y.

Find the full Q&A here.