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ics,” says Fitzgerald. “The goal is to create a value proposition that effectively reduces the number of competitors capable of bidding on projects, so disciplined pricing practices of the best suppliers become the norm rather than the exception. That’s a winning formula for earning higher profits.”
What strategic moves are metalformers making to get there? “At the upcoming 20th anniversary APSC meeting, we’ll discuss how metalformers have differentiated themselves in recent years,” Fitzgerald says, “and the moves they need to make in the near future to ensure success through the rest of the decade and beyond.”
Of note: Fitzgerald says that while 30 percent of the glob- al volume in the industry currently is on a multi-continent platform, by the end of the decade that percentage will grow to 50 percent. “Metalformers will not be able to effectively provide to those global platforms without multi-region capa- bilities —Europe and China, for example,” Fitzgerald says.
Another area of focus for metalformers in coming years, Fitzgerald says, is design for manufacturability. “Suppliers should look to increase process robustness and quality, on behalf of customers,” he says. “Suppliers cannot rest on their laurels—they need to continue to invest, creating a moving tar- get that further allows them to differentiate themselves.”
For years Fitzgerald has prodded automotive-parts sup- pliers to invest in larger, higher-tonnage presses, and to increase value-added capabilities. “A lot of capacity has been
taken out of the market,” says E & E Manufacturing’s Wes Smith, a regular attendee of the APSC meeting. “Adding capacity gives metalformers power in the market. And, in addition to gaining pricing power, at E & E we’ve always emphasized efficiency and improving the metric of value-add per employee—a metric Craig (Fitzgerald) always preaches and discusses at the APSC meeting. It’s a key characteristic of highly profitable companies.”
Forecasting Enables Action Rather than Reaction
As E & E and other automotive-parts suppliers continue to add capacity, accurate forecasting of automotive-OEM pro- duction requirements takes on as critical a role as ever. For that reason, one of the most valuable agenda items of the APSC meeting is the Automotive Forecast Panel. This year’s panel discussion once again will be moderated by Dave Andrea, senior vice president of industry analysis and eco- nomics of the Original Equipment Suppliers Association.
“The forecasting information provided at the APSC meeting provides tremendous value,” says Jim Zawacki, CEO of GR Spring & Stamping, Grand Rapids, MI, a supplier of parts for sev- eral makes and models of hybrid and electric vehicles, and other models. “We cross-reference the data gathered at the APSC meeting with data gained from other sources, which allows us to accurately plan and schedule our metalforming resources.”
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