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Supply Chain The pandemic accelerated smart manufacturing and sustainable operations among auto parts producers, while placing the health of employees as the absolute priority. After production shutdowns, auto parts producers invested heavily in ensuring all the necessary sanitary protocols would be followed. As social distancing measures were enforced, companies quickly realized the advantages of automation. Those that were already at greater degrees of digitalization adapted faster to the change. Among the rest, the interest in eliminating as much manual labor as possible increased and automotive clusters encouraged suppliers to embrace new technologies. At the same time, automakers have announced ambitious plans toward carbon neutrality. Some companies like Toyota and Audi have already published new standards for suppliers’ operations to ensure more sustainable practices across the supply chain. Overall, auto parts production is expected to grow 24 percent in 2021, compared to 2020. Investments from large Tier 1 and Tier 2 companies took place despite the pandemic, decisions mostly driven by a quick recovery in US vehicle demand. Notably, Chinese and other Asian companies are looking forward to establishing a manufacturing footprint in North America, allowing Mexico to take advantage of this unique opportunity brought by USMCA’s new rules of origin for automotive goods, as well as regionalization trends seen after supply chain disruptions brought by the pandemic.
