Supply Chain Woes Could Crush Auto Industry Comeback

During the economic recession of 2008 the US Auto Industry suppliers tightened their belts in order to make it through, closing down less profitable plants and streamlining the remaining operations. The industry, now on the recovery is seeing a serious demand in product from fewer suppliers with smaller operations. Although the suppliers are currently meeting the demand the turnover is slow, and further increase in capacity and an array of new model lines across the board threaten the sustainability of the supply chain.

Although the bottom lines for suppliers have been healthy due to the downturn, as the proverbially fat had been trimmed, they are anxious about reinvesting in their operations as the automotive market is volatile at best.

For more information please see the Detroit Free Press:  http://www.freep.com/apps/pbcs.dll/article?AID=2013306160051