Mexican Media Brands
North American Tooling Industry Faces Sharp Decline
North America’s tool-and-die industry faces a sharp drop in business at the end of the decade that is likely to force many companies out of business, says manufacturing expert Laurie Harbour, CEO of Southfield, Mich.-based Harbour Results Inc.
Share
North America’s tool-and-die industry faces a sharp drop in business at the end of the decade that is likely to force many companies out of business, says manufacturing expert Laurie Harbour, CEO of Southfield, Mich.-based Harbour Results Inc.
After 2020, she says, “the tooling business is going to fall through the floor,” she tells Automotive News.
Harbour forecasts a 50% drop in orders for new North American vehicle programs 18-24 months from now as carmakers wind down a wave of redesigns for next-generation models designed to meet anticipated 2025 fuel economy standards.
When that happens, new-tooling orders will plunge—much as they did during the economic crisis in 2008-2009, Harbour warns. She forecasts that annual spending on new tooling will plummet from about $13.5 billion in recent years to less than $7 billion in 2020-2021.
Most tool-and-die shops in North America are small, privately owned businesses. Harbour says the average owner is more than 60 years old and unlikely to want to go through another wrenching business contraction. Many, she says, will opt to shut down or sell out.
RELATED CONTENT
-
Choosing the Right Fasteners for Automotive
PennEngineering makes hundreds of different fasteners for the automotive industry with standard and custom products as well as automated assembly solutions. Discover how they’re used and how to select the right one. (Sponsored Content)
-
The Koenigsegg Jesko Has An Amazing Engine
It is hard to believe that this is a vehicle in “serial” production with such extraordinary powertrain performance
-
GM Develops a New Electrical Platform
GM engineers create a better electrical architecture that can handle the ever-increasing needs of vehicle systems
