OESA/HRI Automotive Tooling Barometer: Overall Work ‘On Hold’ Increases
The Original Equipment Suppliers Association (OESA) and Harbour Results, Inc. (HRI) recently completed their Automotive Tooling Barometer containing data from Q3 and Q4 2016. After a slow start to the year, the industry moved in a positive direction, as utilization rates remained stable for die (82 percent) and mold (76 percent) tool makers in the fourth quarter; a sharp difference from this time last year. However, overall work ‘on hold’ increased by two percentage points since June and HRI estimates the industry’s work ‘on hold’ impact in Q3 to be around $1.8 billion; an increase of about $200 million since June.
Even as overall work ‘on hold’ increased in the second half of 2016, tool shops expressed a positive outlook about their business for the next twelve months. Since 2015, the tooling sentiment index has increased from 66 to 78, improving by 18 percent. In fact, for the first time since HRI began tracking this index in 2014, the index exceeded 75. Additionally, more die shops (58 percent) compared to mold shops (38 percent) are very optimistic about the future state of the industry. This is driven by the high number of scheduled automotive program launches in 2018 and 2019, as tooling spend is expected to reach $13.7 billion in 2017 in support of the upcoming programs.
“Mold and die shops reported a significant increase in their number of tools shipped this year,” said Laurie Harbour, president and CEO of HRI “We attribute this increase to the strong automotive forecast, which shows new vehicle entry and redesign programs doubling.”
The Tooling Barometer collected insights from a diverse group of shops, with shops in the $5 to 20 million revenue range creating nearly 50 percent of respondents. The remaining survey respondents included shops with less than $5 million in revenue (18 percent) and shops with $20 to 40 million in revenue (15 percent). Shops with a revenue of $40 million or more (11 percent) finished off the total.
About the OESA/HRI Tooling Barometer
The OESA Automotive Tooling Barometer survey series was created by the OESA Tooling Council with the partnership of Harbour Results, Inc. to provide an indicator of the current state of the automotive tooling industry, and the perception of the near-term prospects for the industry. The OESA Automotive Tooling Barometer captures the sentiment of the major companies in this market. A full copy of the September OESA Automotive Tooling Barometer results is available here.
About HRI, Inc.
Harbour Results, Inc. a leading business and operational consulting firm for the manufacturing industry offers operational and strategic advisory expertise, and proprietary assessment programs to help optimize a business’s performance. Focused on small- to medium-sized manufacturers, many of which are family-owned or privately held, HRI utilizes its knowledge, experience and relationships to build upon the established foundation with sound strategies and operational improvement. Headquartered in Southfield, Michigan, Harbour Results was founded in 2005 by industry analyst Laurie Harbour. Today, the Harbour Results team is comprised of manufacturing experts, and clients also have exclusive access to Harbour Results’ network of partner companies and worldwide resources.
OESA’s mission is to champion the business interests of automotive original equipment (OE) suppliers. Since 1998, the Association has been addressing issues of common concern and advocating on behalf of the supplier community throughout the supply chain and in Washington, D.C.
OESA is one of four divisions of the Motor & Equipment Manufacturers Association (MEMA). All divisions are represented by MEMA’s advocacy and emerging technology expertise. For additional information, visit http://www.oesa.org.