OESA, Harbour Results Releases Q2 2019 Automotive Tooling Barometer Survey Results
The Original Equipment Suppliers Association (OESA) and Harbour Results, Inc., (HRI) recently released the results of their Q2 2019 Automotive Tooling Barometer Survey.
The Original Equipment Suppliers Association (OESA) and Harbour Results, Inc., (HRI) recently released the results of their Q2 2019 Automotive Tooling Barometer Survey. The results show that the tooling industry continues to slow, with North American capacity utilization at its lowest mark since 2016 when the metric first started being collected.
In Q2 2019, mold shop utilization saw a 4% decrease to 74% as compared to Q1 2019. Die shop utilization dropped from 74% to 70% in the same timeframe. Additionally, automotive program delays drove work on hold to a record high of more than 20%. Based on these factors, tool shop owner sentiment dropped to 61%. The first two quarters of 2019 saw a decrease in utilization and a significant increase in work on hold, and according to the company, with this challenging environment and Chinese tool shops underpricing North American ones, the industry is likely to see more layoffs and bankruptcies in the balance of the year.
The study also looked at the business readiness of shops. A majority of both mold and die shops (79% and 86% respectively) who responded to the survey indicated they had a three- to five-year strategic plan. However, when pressed, these same companies did not have the same level of plans in place for the adoption of technology, sales process or labor and hiring.
Specifically looking at labor and hiring readiness across the tool and die industry, a majority of those surveyed are experiencing a shortage of qualified talent, with many shops indicating they currently have difficulty filling open positions. Additionally, 67% of die shops and 81% of mold shops indicated they were not prepared, to somewhat prepared, for the next generation workforce.
The survey population was comprised of mold shops (63%) and die shops (22%) in the U.S. (56%), Canada (34%) and international (10%). Shops with revenue ranges less than $5M up to greater than $40M were represented, with the largest percentage of shops coming from the $10-$20M (29%) range.