Blog posts tagged with Motor-Vehicle-Supply-Chain

Case Western survey reveals good side and ugly side of automotive supply chain

March 20, 2012 by MAGNET Ohio

By Susan R. Helper and Tim Krueger America’s automotive supply chain is a vital organ of our country’s economic engine, employing about 578,500 workers.  The lower tiers of the supply chain alone account for 30% of U.S. auto industry employment. In 2008 and 2009, when fear of an auto industry collapse was palpable, the fate of the supply chain was a major concern both because of the number of American jobs it supports and because a problem in one small part of the supply chain can send disastrous ripple effects through the entire industry.  Given its importance, our team of researchers at Case Western Reserve University set out to study the health of America’s automotive supply chain.  We sought to gain a better understanding of the industry’s problems, and their solutions. Our study was funded by the federal Department of Labor, and we are grateful to MAGNET, the Manufacturing Advocacy & Growth Network, for their collaboration as well. In a nutshell, the results of our study show that not all automotive suppliers are equal.  In fact, even firms with similar core competencies, supplying similar products for similar prices, adopt entirely different business strategies.  What’s more, it turns out that different

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As economy heats up, motor vehicle supply chain faces new challenges and opportunities

March 19, 2012 by MAGNET Ohio

The Wall Steet Journal recently reported that the surge in consumer borrowing is primarily due to auto and student loans—two factors that bode well for the auto industry (Consumers Ramped Up Borrowing in January, by Neil Shah, Wall Street Journal, March 7, 2012). The average car on U.S. roads is now a record 10.8 years old. More people buying cars gives more solid evidence to a rebounding auto industry. More people returning to school, could lead to more skilled workers for advanced manufacturing positions that are going unfilled. Ohio is experiencing both of these phenomena even as the unemployment rate continues to go down. The PNC National Economic Outlook for March reported "there was a big jump of 6.8 percent in output of motor vehicles and parts in January, consistent with stronger sales; this was on top of a 3.8 percent gain in December (revised up from 0.6 percent). Auto manufacturers have boosted production as demand has picked up. This is also spurring hiring in manufacturing, and broader economic recovery, especially in the Midwest." For the past several months, in Ohio, we’ve been seeing headlines that confirm what appears to be a recovery in the auto industry. Headlines like: Ford

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