Harbour Results study finds auto industry can anticipate future capacity constraints

Harbour Results Inc., Royal Oak, Mich., anticipates a vendor tooling capacity constraint within the automotive industry by 2018, according to its 2013 Vendor Tooling Study. In about five years, the required capacity of the vendor tooling industry will reach $15.2 billion, with available current supply of only $9.25 billion. Vendor tooling — tooling purchased by the OEM to be run in Tier 1 or Tier 2 facilities — is a crucial part of the automotive industry and the vehicle development process, accounting for an average of $550 per vehicle in North America at 2012 vehicle volume. This capacity issue affects the entire value stream from vendor tooling suppliers to Tier 1 suppliers and OEMs.

The study, which gathered information from 10 OEMs, nearly 50 major Tier 1 suppliers, and more than 50 global tooling suppliers, identifies several factors that will contribute to the demand increase, including:

• Mass customization.
• Increased complexity.
• European and Asian OEM tool localization to North America.
• Increased vehicle content.
• Labor shortage.
• Increased price pressure.

To solve the imminent capacity issue, OEMs, Tier 1, and tooling suppliers must revisit current strategies throughout the entire value stream. The study identifies the following key strategies for reducing the capacity discrepancy: early collaboration, focus on cost (as opposed to price), and management of the value stream.

The study was conducted in partnership with OESA and with support from LMC and Clinton Aluminum.