"Frankly, a lot of the suppliers scaled back on apprenticeships and internship programs a few years ago," said Rich Antonini, whose firm will co-host the 14th annual Automotive Suppliers Symposium next week at the Van Andel Global Trade Institute.
Advanced manufacturing processes need skilled workers to keep the machines operating, according to auto suppliers. GRAND RAPIDS, MI – Finding qualified employees remains the biggest challenge facing West Michigan companies that make parts for the world’s automobiles, according to Rich Antonini, managing partner of the Grand Rapids office of Plante Moran.
“Frankly, a lot of the suppliers scaled back on apprenticeships and internship programs a few years ago,” said Antonini, whose firm will co-host the 14th annual Automotive Suppliers Symposium next week at the Van Andel Global Trade Institute.
“They were all about survival back then. What they didn’t do back in ’08,’09 and ‘10 is really impacting them in 2013,” Antonini said in an interview on Wednesday, Feb. 27.
The growing demand from automakers who are expected to produce more than 15.5 million vehicles in the next year -- compared to 8.5 million vehicles in 2009 -- creates new problems, Antonini said.
"The next 24 months will bode well for suppliers," Antonini said. "Production numbers are up, which is driving growth in suppliers. Many of the clients we're talking with are having difficulty keeping pace with demand."
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Suppliers attending the symposium also will hear from Jay Moore, Ford Motor Co.’s director of purchasing, Antonini said.
In addition to supplying the “Big Three,” West Michigan suppliers are making inroads with international automakers such as Nissan, Honda and Volkswagen, Antonini said.
“The 2011 tsunami in Japan caused massive disruptions in the supply chains of Honda, Nissan and Mazda, who had traditionally relied on Japanese suppliers for their parts,” he said.
“They realized that they needed to broaden the base of their suppliers and began turning to American companies, whose quality and timeliness have improved dramatically over the last two decades.
“Additionally, Honda, Nissan and Volkswagen are expanding their footprints in North America, building new assembly plans in the South and Mexico. They, too, are tapping more American suppliers, which is prompting additional growth in West Michigan,” Antonini said.
The political climate also has improved, Antonini said. Federal tax credits for research and development are still in place along with deductions for domestic production and equipment purchases, Antonini said.
Michigan’s elimination of the corporate income tax and the phasing out of the state’s personal property tax on industrial equipment also have encouraged growth, Antonini said. The impact of recent “Right To Work” legislation is unclear, he said.
E-mail Jim Harger: jharger@mlive.com and follow him on Twitter at twitter.com/JHHarger