NEWS
Original Equipment Suppliers Association
2019 Third Quarter │ Edition 1
Championing the business interests of automotive suppliers IN THIS ISSUE... 2 3 5
The Suppliers' Voice Supplier Barometer Guest Column: RSM
7 OESA Events 10 Council Feature: YLC 8 11 Calendar of Events
This edition is sponsored by:
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Learn more about our automotive, autonomous and tariff legal practices at wnj.com. 1 │ OESA News - 2019 Third Quarter
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Voice
SUPPLIERS' VOICE
The Suppliers’
2019 Annual Member Feedback Drives New Strategic Priorities The OESA Annual Member Feedback Survey continues to be an important method to gauge the needs of OESA members and their overall satisfaction with the Association. We take member feedback seriously and use it to drive strategic direction and improve member engagement.
Julie A. Fream
Overall, the 2019 Member Survey feedback was positive; the most positive feedback is in the following categories: •
Advancing the business interests of the supplier community (rated 8.1 out of 10)
The mission of OESA is to champion the business interests of the automotive supplier community throughout the supply chain; everything we do supports that mission. •
OESA staff responsiveness (rated 6.5 out of 7)
The OESA team is dedicated to providing quality customer service and works to address the needs of the automotive supplier community each and every day. Results of the survey also indicate OESA is successfully addressing the needs of members in government advocacy (rated 5.7 out of 7). Together with the MEMA Washington, D.C. office, OESA is ensuring the supplier voice is heard on Capitol Hill and the state level. As the industry evolves, so do the needs of suppliers – and the work of OESA. Based on member feedback, OESA is incorporating the following in our strategic priorities: •
Foster stronger supplier/OEM and supplier/supplier relationships
•
Increase member awareness of MEMA advocacy activities that directly support supplier concerns in Washington, D.C.
•
Integrate new technology and mobility suppliers as part of OESA membership
OESA Members continue to rank the following as the most valuable aspects of OESA Membership: •
OEM Town Halls
•
Networking
•
Industry Trends/ Benchmarking/Best Practices
•
Peer Group Councils
Thank you to everyone who participated in the OESA Annual Membership Survey. We appreciate your feedback on how to improve OESA for all members. As always, please feel free to contact me any time at 248.430.5963 or jfream@oesa.org.
Julie A. Fream President and CEO OESA
OESA News - 2019 Third Quarter
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SUPPLIER BAROMETER
OESA Supplier Barometer: Concerns Persist Over Trade and Market Turbulence Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org
According to the 2Q 2019 OESA Automotive Supplier Barometer Index (SBI) – a gauge to measure the sentiments of North American automotive supplier executives – supplier pessimism continues to weigh upon the automotive supply base. Results posted a negative reading of 35 for the period; 15 points below a neutral reading of 50. For the second straight quarter, the SBI is at its lowest level since 2Q 2009.
The high degree of pessimism is attributed to accelerating trade tensions and the market shift in passenger car sales. Survey sampling was conducted in mid-May during the escalating US-China trade discussions. The reading is a dramatic shift in sentiment compared to 1Q 2018, when U.S. tax reform fueled robust optimism. The 2Q 2019 OESA Supplier Barometer, sponsored by RSM US LLP, focused on Capital Markets & Innovation. The results indicate: • • • •
Trade policy remains the greatest industry threat to automotive suppliers In a ranking of concerns, the risk of tariffs under Section 232 on autos and auto parts is the greatest policy threat North America ranks second in planned long-term capital expenditure investment, outpaced by Asia Product innovation investment and merger & acquisition opportunities are the top two strategic priorities for the supplier community
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SUPPLIER BAROMETER
"Leading suppliers continue to demonstrate greater focus and flexibility while using varied capital approaches to advance their innovation strategies,� said Mike Jackson, executive director, strategy and research, OESA. Results highlight that over 70% of respondents affirmed that their capital planning process helps them achieve innovation objectives by leveraging external partners.
The 2Q SBI chart and a full copy of the Supplier Barometer results are available on the OESA website at: https://www.oesa.org/resource/oesa-automotive-barometer-studies. RSM US LLP commentary on the 2Q 2019 OESA Supplier Barometer results can be found on page 5. About the OESA Automotive Supplier Barometer: The OESA Automotive Supplier Barometer captures the pulse and analyzes the twelve-month business sentiments of top executives in the supplier industry. It is a quarterly survey on commercial issues, the business environment and strategies that influence the supplier industry. This Barometer is distributed to vehicle manufacturers, financial institutions, governmental officials and the media to provide an on-going profile of supplier industry trends. OESA News - 2019 Third Quarter
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GUEST COLUMN
5 │ OESA News - 2019 Third Quarter
GUEST COLUMN
OESA News - 2019 Third Quarter
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OESA EVENTS
MEMA Webinar: China Sec. 301 Tariffs: Exclusion Process for List 3 | July 10 This informational webinar will address the product exclusions application process for the Section 301 tariffs on imports from China under the third tranche (a.k.a. List 3, valued at $200 billion). Hundreds of HTS Codes on List 3 are vehicle parts, components and materials used, not only under Chapter 8708, but many other vehicle related goods outside of that chapter. A link to the FRN on the List 3 exclusion process can be found on the OESA website. This webinar is provided by MEMA and Arent Fox LLP for educational and informational purposes only and should not be construed as legal advice. No attorney-client relationship is created as a result of this webinar. About The Presenter: David R. Hamill, partner, Arent Fox LLP, represents U.S. and foreign companies, including manufacturers, importers, exporters, distributors, customs brokers, freight forwarders, and trade associations on customs/ import and export matters. Dave's practice focuses on cross border trade regulatory requirements, including import and customs compliance, duty preference programs, NAFTA/USMCA, economics sanctions and export controls.
OESA 2019 MarComm Summit: Internal and External Strategies | July 17 Automotive marketing and communications executives are invited to attend the 5th annual OESA MarComm Summit: Internal and External Strategies. The event will be held on July 17, 2019, at the The Mint at Michigan First Conference Center in Lathrup Village, MI. As the industry evolves, marketers must also evolve to stay attuned with the ever-changing landscape. They must have the latest marketing tools and data to ensure that their company’s brand stays on pace with customers, employees and the public. This meeting will provide internal and external strategies for marketers to thrive in the new mobility landscape. Integration between marketing and sales can transform your company. Nick Skislak, founder and CEO, SSDM, will discuss how to get buy-in from the entire organization, ways to better integrate sales and marketing teams, and how to educate leads before the sales team touches them. Skislak will show attendees how to: • Clearly understand today’s buyers • Know the 5 questions that need to be answered before buyers make a purchase • Implement a video marketing project to improve your sales process • Effectively present marketing campaigns to leadership and your sales team Marketing professionals are adept at understanding and appealing to the needs of any target audience. We study the audience, analyze their behavior and even develop personas to guide our tactics. How can we apply those same skills to internally market our value to leadership? Karen Manardo, global director, marketing and communications, Inteva Products, will bring her 30 years of marketing experience to this conversation on how to more effectively market in-house what we do to get support, respect, additional resources and, ultimately, a seat at the table. Storytelling has become an art, and it is the stories that people remember more so than a product’s features and benefits. Mike DeVilling, senior partner, Finn Partners, will bring his vast industry knowledge and experience to discuss how marketing and communications professionals can add organizational value through consistent and concise corporate storytelling. 7 │ OESA News - 2019 Third Quarter
OESA EVENTS
OESA 2019 Members-Only Toyota Town Hall | July 23 OESA invites members to attend the OESA 2019 Members-Only Toyota Town Hall Meeting with Robert Young, group vice president, purchasing, SED & cost planning, Toyota Motor North America, Inc. (TMNA), on July 23, 2019, at the Toyota Supplier Center in Saline, Mich. Young is responsible for TMNA’s vehicle parts, materials procurement and supplier development and will provide an update on Toyota Motor North America, Inc. purchasing. Deb Schroeder, vice president, purchasing (direct), and additional Toyota executives will then join Young for the Q&A session.
OESA 2019 Butzel Long Supplier Academy Series III | July 26 The automotive industry continues to grow and innovate at a rapid pace which may present challenges when it comes to protecting the best interests of the business. New types of agreements, customers, buyers and negotiation strategies have become daily topics of conversation. To help seasoned supplier executives and those new to the industry gain a better understanding of various contractual agreements, OESA, in partnership with Butzel Long, will host a “Supplier Legal Academy Series” designed to provide a “back-to-basics” approach for supply chain management in the current landscape, while looking ahead toward uncharted territory. The final OESA 2019 Butzel Long Supplier Legal Academy Series meeting is July 26, 2019, at the MSU Managment Education Center in Troy Mich. Cindy Haffey, shareholder, Paul Mersino, shareholder, and Mitch Zajac, attorney, Butzel Long, will discuss "Safeguarding Your Resources" including: Presenting Sponsor: • Protecting Your Trade Secrets • Workers going to competitors • Who Owns your Work • Rights to Information • Tooling Fundamentals • Tooling rights • Changing ownership as products are developed and created OESA News - 2019 Third Quarter
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OESA EVENTS
OESA 2019 Automotive Raw Materials Summit | Aug. 15 Join OESA as we host the OESA 2019 Automotive Raw Materials Summit on Aug. 15, 2019, at the MSU Management Education Center in Troy, Mich. The program is structured to provide suppliers with a comprehensive materials market outlook, as well as a legal review of contracting safeguards and an understanding of material cost management tools and strategies. The conference features industry insiders including accomplished subject matter expert, Jon Efken, director, GCB head of commodities sales, Bank of America Merrill Lynch. Efken will provide an overview and analysis of the current commodity pricing environment, the latest forecast including how tariff and trade volatility could impact the landscape for automotive suppliers. Jason Killips, member, and Andrew Fromm, member, Brooks Wilkins Sharkey & Turco PLLC, specialize in supply chain counseling and disputes and will share insights on contracting strategies and takeaways to mitigate raw materials exposure. Hear best practices to hedge risk and enhance competitiveness across the supply chain in the context of volatile markets. Learn practical steps for suppliers to safeguard against pricing fluctuations and tariff repercussions. Supporting Sponsor: Fortify strategic purchasing initiatives with global expertise from Argus Media featuring Chuck Venezia, sr. vice president, global petrochemicals, and David Brooks, sr. vice president, global metals. Venezia and Brooks will delve into deeper discussions and offer detailed analysis on the dynamic outlook for a broader range of automotive raw materials in the context of shifting consumer preferences and dynamic global markets.
OESA 2019 FCA North America Town Hall Meeting | Aug. 20 OESA will host the 13th Annual FCA North America Town Hall meeting for OESA members and FCA suppliers on Aug. 20, 2019, at the Suburban Collection Showplace in Novi, MI. This meeting is an opportunity to hear directly from key FCA decision makers in supply chain management, purchasing and supplier quality, and engineering and manufacturing. Scott Thiele, head of purchasing & supply chain North America, FCA, will provide an FCA North America purchasing update and share plans and needs in the near- and longterm. Additional FCA commodity directors and managers will be available for one-on-one networking.
For more information and to register for OESA events and council meetings, visit oesa.org, or call 248.952.6401. 9 │ OESA News - 2019 Third Quarter
Investing in Young Leaders Today to Build Strong Leaders for Tomorrow Keiyania Mann Senior Manager, Council Communications and Planning 248.430.5952 │kmann@oesa.org
OESA is seeking nominations for the eighth Young Leadership Council (YLC8). This council is open to all member companies (suppliers and affiliates) and is designed to help companies retain their top talent. Nominees can come from all functional areas, including finance, sales, marketing, manufacturing, human resources, purchasing, logistics, communications and engineering. YLC8 participants will benefit in the following ways: • Leadership skills development through workshops and industry thought leader presentations • Industry networking through relationships with other industry contemporaries • Access to industry trends and best practices • Idea and information exchange with peers and seasoned industry leaders through roundtable forums • Engagement with OESA through other council meetings, events, and programs at reduced fees or at no cost Graduates leave the program better prepared for greater responsibility and equipped for the next step in their career. Nominate candidates for the Young Leadership Council by completing the nomination form before September 2, 2019. The kickoff meeting for YLC8 is on Thursday, October 10, 2019, at the OESA Conference Center in Southfield. Early nominations are encouraged. For more information on the OESA Young Leadership Council, contact Keiyania Mann at 248.430.5952 or kmann@oesa.org.
"Through this program, it is easy to get a sense for what it will take for the next generation of senior leadership to meet future industry trends and challenges."
"The lessons learned during the YLC stay with me to this day. I am significantly grateful for having the opportunity to serve on the Council.”
"The Young Leadership Council has provided the unique opportunity to be exposed to automotive leaders and legends."
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CALENDAR OF EVENTS OESA Board of Directors Executive Committee Chairman of the Board Ramzi Y. Hermiz President and CEO Shiloh Industries, Inc. Immediate Past Chair Mike Mansuetti President Robert Bosch LLC
UPCOMING TOWN HALLS* July 23
Toyota Town Hall Saline, MI
Aug 20
FCA Town Hall Novi, MI
Dec 4
Ford Town Hall Dearborn, MI
Directors Oscar R. Albin Executive President INA, Industria Nacional de Autopartes A.C.
UPCOMING OESA COUNCIL MEETINGS* July 9
Legal Issues Council Southfield, MI
July 16
Young Leadership Council 7 Southfield, MI
July 17
Joint Communication Executives and Automotive Public Relations Council Lathrup Village, MI
July 25
Human Resources Council Southfield, MI
Paul Barnett President Principal Manufacturing David C. Dauch Chairman and CEO American Axle & Manufacturing, Inc.
Paul Doyle CEO Coastal Automotive
Michael Haughey President North American Stamping Group, LLC Kenichiro "Ken" Ito Executive Director DENSO Corporation Chris Obey President, Automotive Flex Lon Offenbacher President and CEO Inteva Products Michael Robinet Managing Director IHS Markit Samir Salman CEO NA Region Continental Automotive Systems, Inc. Daniel Sandberg President and CEO Brembo North America, Inc. Armando Tamez CEO Nemak
Jacqui Dedo Co-Founder Aware Mobility, LLC Jon DeGaynor President and CEO Stoneridge
Scott Ferriman President MAHLE Industries, Incorporated
Ronald Hall Jr. President and CEO Bridgewater Interiors, LLC
Vice Chair Ken Hopkins President and CEO Neapco Holdings, LLC
Officer Bill Long President and CEO MEMA
John Dunn President and CEO The Americas Plastic Omnium Auto Inergy Division
Denise Gray President LG Chem Michigan Inc. Tech Center
Vice Chair Françoise Colpron Group President Valeo North America
Officer Julie A. Fream President and CEO OESA
OESA Board of Directors
Jim Teets President and CEO ADAC Automotive *Open to members and invited guests.
Katsutoshi Uno Chairman and CEO HIROTEC AMERICA, Inc.
For more information and to register for OESA events and council meetings, visit oesa.org, or call 248.952.6401. 11 │ OESA News - 2019 Third Quarter
Original Equipment Suppliers Association 25925 Telegraph Rd., Ste. 350 │Southfield, MI 48033-2553 248.952.6401 │oesa.org │info@oesa.org Connect with us on OESA News is provided by members of the OESA Communications Team. April Buford Senior Director, Communications
Jeff Laskowski Senior Manager, Communications
Abby Napier Communications Specialist
248.430.5964 abuford@oesa.org
248.430.5951 jlaskowski@oesa.org
248.430.5957 anapier@oesa.org