OESA Automotive Supplier Barometer
Deloitte, with Original Equipment Suppliers Association (OESA), is proud to release the OESA Automotive Supplier Barometer. The OESA Automotive Supplier Barometer is a bi-monthly survey of executives of OESA regular member companies. It takes the pulse of the suppliers' 12 month business sentiment and provides a snapshot of the industry commercial issues, business environment, and business strategies that influence the supplier industry.
The OESA Automotive Supplier Barometer is distributed to vehicle manufacturers, financial institutions, governmental officials, and the media to provide an on-going profile of the supplier industry.
The September edition of the Automotive Supplier Barometer focuses on increasing capacity and implementing capital investment plans.
Perspectives on September’s Barometer from our leaders
According to Chuck Ciuni, US Automotive Supplier Practice Leader for Deloitte LLP: “Overall, suppliers appear confident in having sufficient access to capital to meet near-term capacity projections. However, suppliers are proceeding with caution on capital investments and growth plans due to uncertainty in global markets and with possible volume and platform production shifts between regions in North America on the horizon. Most are focusing on research of new technologies and development of customer-specific applications but may need to consider acquisitions to gain access to emerging technologies.”
Archived Supplier Barometers
Perspectives on July’s Barometer from our leaders
According to Bruce Brown, US automotive leader for Deloitte Consulting LLP, “Suppliers appear to be cautiously preparing for longer-term, sustained growth. Most are focusing within their core businesses, with an eye toward capturing growth associated with the application of new technologies, as well as expansion into new geographies and customers. M&A could be a viable strategy for many, however most realize it also presents risk. Especially when objectives focus on access to new technologies and talent. Cultural and operational integration issues can often surround transactions involving this kind of diversity between buyer and target.”
The May edition of the Automotive Supplier Barometer focuses on industry globalization and absolute growth in various regions.
Perspectives on May’s Barometer from our leaders:
“We see growth continuing in most global regions, with economics, skilled labor, government regulations, and customer cost pressures contributing to the largest hurdles in the US,” said Chuck Ciuni, automotive supplier portfolio leader, Deloitte Tax LLP. “As suppliers continue to address these issues, we are seeing a significant push for focus on growth capabilities in Mexico, aligning to the location manufacturing footprint of OEMs' assembly plants. Mexico provides low wages, access to a strong-educated work force, and various free-trade arrangements; while staying in close proximity to the profitable US market.”
The March edition of the Automotive Supplier Barometer focuses on supply chain related issues and strategies suppliers are deploying to manage supply chain disruptions and mitigate risk.
Perspectives on March’s Barometer from our leaders:
“Suppliers receiving late customer engineering change orders was rated the highest in probability of occurrence and significant in terms of severity of impact to operations,” says Neal Ganguli, director, Deloitte Consulting LLP. “Many supplier customers and the OEM end-customers are forcing late changes themselves and inflicting capacity constraints and quality issues through the supply chain. To address supply chain disruptions in the automotive supply base, suppliers are increasing inventory and expanding shipment flexibilities to help mitigate risk,” continues Ganguli. “Holding additional inventory provides excess capacity, while flexibility of inventory allocation helps avoid demand shortage. The use of alternative ports, in addition to splitting inventory volumes through different logistic transportation options such as air shipments and expedited freight, can provide risk mitigation while meeting production requirements.”
View the article: Supplier Strategies to Mitigate Supply Chain Risk Barometer.