Page 42 - MetalForming January 2014

Tooling Technology
Automotive
Industry
to Face Capacity Constraints
A new survey of the vendor tooling industry uncovers
a $6 billion discrepancy in supply and demand. All is not lost, however, as we explore reasons for the projected capacity shortfall and reveal possible solutions.
By 2018, the demand of the ven- dor tooling industry supporting North American automotive manufacturers will reach $15.2 billion, with available current supply of only $9.25 billion and capacity of $11.25 bil- lion. So finds a recent industry survey compiled by Harbour Results, Inc., Royal Oak, MI, in partnership with the Original Equipment Suppliers Associ- ation. Vendor tooling—tooling pur- chased by the original equipment man- ufacturer (OEM) and run in a Tier 1 or Tier 2 facility—accounts for an average of $550 per vehicle in North America.
“Capacity will become a serious challenge for the automotive indus- try,” says Laurie Harbour, president and CEO of Harbour Results. “If North American tooling suppliers fail to respond to the challenge, European and Asian tooling suppliers may help fill the void.”
We spoke with Harbour to better understand what’s at stake, and for her thoughts on how North American tooling companies can meet the expected uptick in tooling programs.
The study references information gath- ered from 10 automotive OEMs, near- ly 50 major Tier One suppliers and more than 50 global tooling suppliers. Up for discussion:
• Mass customization
• Increased tooling complexity
• Europe and Asian OEM tool local-
ization to North America
• Increased vehicle content
• The North American labor shortage • Increased price pressure
The Business Model is Broken
“The business model is broken,” Harbour says, “in terms of payment terms and the practices being used to drive down costs. There’s a real
BY BRAD F. KUVIN, EDITOR
Trends in LCC Tooling
53%
5%
Will Decrease for Most Commodities
Will Remain About the Same
19%
Will Depend on the Commodity
22%
Will Increase for Most Commodities
Source: OESA Survey 2013
40 MetalForming/January 2014
www.metalformingmagazine.com
Automotive suppliers were asked: How do you see the purchasing of LCC tooling changing in the future for your company?
% of Respondents