Survey reveals growing pessimism among supplier executives


According to the Original Equipment Suppliers Assn. Automotive Supplier Barometer Index Q4 2021.

The online survey of executives of OESA supplier companies, conducted October 7-27, found an index reading of 34, down 18 points from the third quarter reading of 52, and 16 points below a neutral reading of 50. OESA received 111 complete survey responses and 148 total responses.

The “significantly negative” reading for the index of 34 reflects growing pessimism across the supplier community, although the largest companies are the most pessimistic overall. “The deteriorated outlook is attributed to continued production shutdowns due to the semiconductor crisis, tighter working conditions and shortages of raw materials and components which are impacting the capacity of the supply base. to meet customer volumes, “OESA said in a press release.

Among the findings of the OESA Q4 2021 Automotive Supplier Barometer:

  • Production stoppages due to supply chain shortages and issues, workforce availability and inability to meet customer volumes continue to be the primary threats to the industry in the world. over the next 12 months and got worse in the last quarter. Provider Confidence in the strength of the US economy also weakened, as problems with the pandemic persisted longer than expected.
  • Production volume in 2020 and 2021 was and is expected to fall by around 500,000 units below the levels the supply base needs to break even, suggesting consecutive years of net losses for suppliers. 2022 production volumes are expected to return to profitable territory but face risks from the semiconductor shortage.
  • The terms of commercial loans and lines of credit are expected to continue to tighten over the coming year. While confidence in acquiring capital remains at high levels, suppliers are less confident that they can access the capital they need compared to 2020.
  • Thirty-eight percent of suppliers believe they are ahead of the pace of industry innovation while 28% believe they are lagging behind. Focusing on partnerships, technological R&D, diversification and the development of products and solutions that support the electric vehicle market are common practices among companies that see themselves as the most innovative.

“Leading companies continue to address pervasive supply chain constraints with a focus on people and technology to improve visibility and manage current crises to improve competitiveness and strengthen position. market as part of the market recovery, ”said Mike Jackson, executive director of strategy and research, OESA.

Despite year-over-year profit pressures, vendors continue to demonstrate remarkable tenacity in disrupting past practices to discover new solutions and seize opportunities in the mobility landscape – thanks to a renewed emphasis on software skills and a vital commitment to harnessing innovation, ”he says.


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