Biggest Supplier Challenge: Tech Talent

U.S. auto suppliers say their biggest problem in keeping up with the pace of new-vehicle launches through at least the end of this decade will be finding enough engineering staff.

A survey by the Original Equipment Manufacturers Assn. finds 37% of suppliers worried primarily about labor and talent for themselves and their customers. Another 38% describe engineering talent as their second-most-important concern.

Not surprisingly, suppliers say their biggest need for engineering talent is in the three regions where they expect the strongest growth: Mexico, China and the U.S. OESA notes that suppliers are increasingly focused on product validation as the pace of industry recalls quickens.

Respondents overwhelmingly say their engineering personnel goals in those markets is to add permanent local staff rather than rely on talent through partnerships.

Only 17% of suppliers polled are worried about production capacity.

U.S. suppliers are currently running at an average 90% of immediate capacity, according to the survey. About one-third report no supply chain constraints. Those that do say the two biggest sourcing challenges lie in electrical and electronic components (22% of respondents) and powertrain (18%).