Automotive suppliers optimism jumped in September,
stemming from greater business activity in North America and a
stabilizing European economy, Original Equipment Suppliers
Association (OESA) senior vice president of industry analysis
and economics Dave Andrea said.
The OESA auto supplier
sentiment index rose to 66 in September from 60 two months
earlier, a level last reached in January 2012.
plants are "busting at the seams" with work, it said.
"We have been awarded
several programs from our end customers over the last two
months. ... Our growth plans continue to be aggressive,"
another member said.
"We are seeing growth
in the North American and European markets," a third company
While some survey
respondents maintained their forecasts, none said they were
more pessimistic than two months earlier.
A few auto suppliers
mentioned cost concerns, but very fewthree of
85cited raw materials as an issue. Instead, labor costs
are rising as factories increase capacity to supply new auto
challenges that suppliers face in reaching their 2013-14
business plans include human resources (hiring, retention and
productivity), capacity constraints, launch management and
capital planning. External short-term worries relate to market
demand and uncertainty, supply constraints, selling price
pressures and customer launch schedules, the OESA survey
The most frequently
cited long-term issues included hiring and retaining workers,
finding and developing talent, including in high-skilled areas
such as engineering.
Auto suppliers also
expressed concern about globalization, government regulations
and geopolitical risks.
were bullish about the capital projects they want to achieve to
meet 2014-15 demand requirements, with 48 percent very
confident and 36 percent somewhat confident their capital
expansions will be implemented.