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New initiatives help Canadian auto parts suppliers adapt to new realities |
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In business as in life, the ability to adapt to changing circumstances often means the difference between success and failure.
Just ask Canadian auto parts suppliers who have been beset by a host of problems ranging from the high dollar, increasing global competition, the need to innovate to remain productive and competitive, recent U.S. labour agreements that have further increased labour costs in Canada, and other issues.
However, two initiatives introduced at the recent Automotive Parts Manufacturers’ Association’s (APMA) 2008 conference and exhibition are designed to help Canadian auto parts suppliers maintain their competitive position and better respond to rapidly changing market circumstances.
One such strategic initiative introduced at the APMA conference is the APMA Market Intelligence Program (AMIP). ”Canadian automotive suppliers face a very difficult time. The AMIP initiative is designed to help Canadian suppliers become more competitive. The coverage, content, support and integration of the program will help suppliers to respond more effectively and more efficiently to today’s demanding automotive environment,” Gerald Fedchun, president of APMA, said in announcing the initiative.
According to Fedchun, the AMIP initiative is aimed at improving the competitiveness of Canadian automotive suppliers by providing a low cost, high benefit, business planning solution. “Competitiveness is based on innovation. We are helping Canadian automotive suppliers to improve the productivity of their planning efforts. The AMIP innovation combines accelerating the planning and information access and analysis process, improving member support services and lowering member costs.”
The AMIP initiative will be powered by the industry-leading market intelligence databases and software of AutomotiveCompass Ltd. AutomotiveCompass was selected as the exclusive provider of the AMIP market intelligence solution, combining automotive databases and proven business planning software, designed specifically for automotive suppliers.
“This partnership between APMA and AutomotiveCompass supports the competitiveness of Canadian automotive suppliers by improving access to both critical market intelligence information and best practice planning tools and processes,” said William Pochiluk, president of AutomotiveCompass.
In another announcement, the APMA and the Canadian Tooling and Machining Association (CTMA) will use $1.2 million in provincial funding to increase their competitiveness and strengthen Ontario’s manufacturing base.
“This is about strengthening Ontario auto supply chain from beginning to end,” said Sandra Pupatello, Ontario’s Minister of Economic Development and Trade, in announcing the funding program. “We’re investing strategically to get car companies building in Ontario, sourcing from Ontario parts makers, who in turn get their tooling designed and built here too.”
Under the project, the CTMA will assess shortfalls in software skills across the industry and work with suppliers to identify solutions. This will include testing and evaluating software and developing new training programs.
CTMA President Horst Schmidt also welcomed the funding program saying, “To advance their competitiveness, our members need leading-edge design software and technology. Keep in mind that many tooling companies are small operations servicing the broad-based Canadian manufacturing sector, so this kind of industry-government partnership is exactly what’s needed.”
At the same time, the APMA will pilot cost reduction projects at a number of auto parts companies and share the results across the industry. The association will also engage consultants with expertise in manufacturing cost reduction and develop new business with Japanese and European auto makers building vehicles in North America.
“This project is going to deliver targeted, tailored advice to help our member companies boost competitiveness and diversify their customer base,” Fedchun noted. “It’s an important step for our industry to adjust to the new realities of our business climate.”
Not only will the two new initiatives help Canadian auto parts suppliers come to grips with the new economics emerging in the marketplace at the moment, but also help them to establish a business model to ensure their ongoing success in the future.
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