Automobile industry concerned about mould manufacturers ability to fulfill the demand for tools

Concerns abound in the automotive industry over whether mold manufacturers can keep up with release dates scheduled for 2014 vehicles. With the number of vehicles expected to exceed 17 million in 2014 and rising again in 2015, suppliers of OEM and Tier 1 are in doubt about the ability of the mold industry .

A report released on October 31 through the port of Results Inc. in cooperation with the Association Original Equipment Suppliers (HRI 2013 Vendor Tooling Study) , said that in about five years, the required capacity of the supplier mould making industry will to $ 15.2 billion , with available power supply of only $ 9.25 billion . With tools a critical component of the supply chain , representing an average of $ 550 per vehicle in North America in 2012, the volume of the vehicle, this capacity problem affects the entire value chain, according to the report .

"Capacity will become a serious challenge for the automotive industry in the near future . If the mold tooling industry in North America does not respond to the challenge of someone, like tools vendors from Europe and Asia, will be ," said Laurie Harbour, president and CEO of Harbour Results Inc.

One of the key strategies identified in the survey results to resolve port impending capacity problems include early collaboration - as early as 36 months before the release of vehicles - including OEMs , Tier 1 and tool vendors . "Increased collaboration leads to improved manufacturability , increased input in the design phase , a better understanding of the capacities of suppliers and more ," said the report.

Other strategies include a focus on the price (compared to price ) and the management of the value chain . " Today, the industry is focused on increasing the pressure on prices and the price of the tools , rather than the cost created along the entire value chain of tools," the report said. " OEMs are using a number of different tactics to lower the price of the tools and services , including the adjustment of the terms of payment and supply of low-cost country . "

"The search for lower prices , especially in low-cost countries is not the answer," Harbour said. "The gap ahead for countries like China has declined and continue to decline . China remains an option for the moulds and tools, but highly complex , critical tools will stay here . If the focus does not shift to the management of costs, incredible challenges as industry capacity grows in this region " will face .

Last modified onTuesday, 17 December 2013 06:31
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