During a soft automotive market, injection molders should be diligent in evaluating the true cost of product lines and rightsizing their businesses, experts say.
With high interest rates, a tough economy and an upcoming U.S. presidential election, consumers are waiting to see if a new car purchase is "an investment they want to make right now," Laurie Harbour, principal at consulting firm Wipfli, told Plastics News.
Although the auto market is "not bad, … OEMs are still making good money," Harbour said, but it's "a softer market than what we would have ever expected pre-COVID. We're not at the 17 million-unit mark, and I don't think we will be for many years to come, if at all."
With consumer debt soaring and vehicle prices remaining high, consumers are waiting to see if the Federal Reserve Board lowers interest rates, and car dealership inventories are growing, she said.
"I never thought we'd go back to During a soft automotive market, injection molders should be diligent in evaluating the true cost of product lines and rightsizing their businesses, experts say.
With high interest rates, a tough economy and an upcoming U.S. presidential election, consumers are waiting to see if a new car purchase is "an investment they want to make right now," Laurie Harbour, principal at consulting firm Wipfli, told Plastics News.
Although the auto market is "not bad, … OEMs are still making good money," Harbour said, but it's "a softer market than what we would have ever expected pre-COVID. We're not at the 17 million-unit mark, and I don't think we will be for many years to come, if at all."
With consumer debt soaring and vehicle prices remaining high, consumers are waiting to see if the Federal Reserve Board lowers interest rates, and car dealership inventories are growing, she said.
"I never thought we'd go back to these days of 100 days of inventory, but we have," Harbour said. "I thought COVID taught us some things. Prices have kind of leveled off, but incentives are growing at the dealer. … I think this softness will continue through the balance of the year."
Market "softness," she added, is "creating a level of uncertainty" in the market. "It's still a better industry than some others, but [suppliers] have to be diligent."