NEWS Original Equipment Suppliers Association
2021 Third Quarter │ Edition 2
2021 AUTOMOTIVE SUPPLIER CONFERENCE
Beyond Disruption November 8, 2021
Suburban Collection Showplace
Register now at oesa.org/events
IN THIS ISSUE... 1 On Your Behalf 10 OESA Automotive Supplier BarometerTM 17 OESA Events 2 Thoughts on Vehicle Electrification in the U.S. 12 RSM Commentary.. Automotive Supplier BarometerTM 20 Welcome New Members 4 Assembling a Car with Argus Metal Prices 14 OESA Peer Group Councils 21 OESA Calendar of Events 6 OESA Automotive Supplier Conference 8 Member Highlight
Warner Legal Corner LEGAL TOPICS FOR THE AUTOMOTIVE INDUSTRY Volume Five, August 2021
How Auto Suppliers Can Minimize COVID-19’s Delayed Impact on the Auto Supply Chain
ATTORNEY SPOTLIGHT
As COVID-19 hit and a wave of shutdowns began, the automotive industry feared uncertainty. Many questions arose surrounding the shutdowns’ impact on sales and if force majeure would play a part. Although COVID-19 affected nearly everyone in the industry, few suppliers faced significant issues. While the shutdowns did not immediately distress the industry as feared, those effects are now coming home to roost and are impacting virtually all automotive suppliers.
Homayune Ghaussi
Last year’s lower production and sales in certain industries (automotive, construction and the like), mixed with higher levels of demand and production in others (consumer electronics and medical devices), are now leading to shortages and increased prices of key raw materials. As you navigate these choppy waters, it’s best to have a plan. Gather your documents. Automotive supply is rarely based on a contract you can hold in your hands. It is a nomination letter, a purchase order, a set of terms and conditions referenced in the purchase order and other documents referenced and incorporated into these. Review all of them to understand your leverage points and determine your course of action.
Review your contract documents with your end game in mind. Do you want to exit the relationship? Do you want to increase prices to your customers? Or do you simply want to counter your supplier’s demands for a price increase? Devise your strategy. Depending on your contract terms, you may be entitled to enforce the price, pass-through the price increase or take a definitive position on your contract and your relationship with your supplier or customer. For more information from Warner’s Automotive Industry Group, visit their webpage or log onto www.wnj.com.
Warner Partner Homayune Ghaussi focuses dually on both supply chain litigation and commercial contract negotiation, primarily for automotive suppliers. Having worked with the automotive industry for 18 years, he regularly represents clients in complex litigation and commercial disputes, including through jury trials and arbitration hearings. His preference is to step in earlier to: “Spend a few hours in the outset, reviewing and understanding your contracts to reduce the risk of spending months or years with us in litigation at the end.” It’s his litigation experience, however, that gives Homayune valuable insight into how those contracts are likely to be interpreted if a problem arises. An executive at a Tier 1 automotive supplier, who regularly retains Homayune to better understand potential legal ramifications of its customer contracts, describes his advice as invaluable. “It allowed us to proactively address issues with our customer that we would have missed had we not had his guidance.” Homayune has been named among the Best Lawyers in America® in Commercial Litigation; a Top Lawyer in Litigation and Commercial and Intellectual Property Law by Dbusiness; and a Michigan Super Lawyer. He serves as the chair of Warner’s Supply Chain Litigation Practice Group and on the firm’s Management Committee and Pro Staff Committee. In 2014, he won Warner’s “Mentor of the Year Award” that is given to a partner who goes above and beyond in mentoring associates at the firm. Check out Homayune’s full bio here.
Tom Manganello
tmanganello@wnj.com 313.263.6855
Elaine Taylor
etaylor@wnj.com 586.876.4045
Connect with Warner’s Tom Manganello and Elaine Taylor at the CAR Management Briefing Seminars in Traverse City, Michigan, August 4-5, 2021.
Click here to access Warner’s Legal Corner Resource Page on OESA’s website.
On Your
Behalf
As the industry continues to recover from the impact of the coronavirus pandemic and recent material shortages, suppliers should be planning for additional industry disruptors. Specifically, ongoing vehicle technology changes require automotive suppliers to evaluate their product lines and manufacturing processes to ensure their long-term competitiveness and financial viability.
Below are a few of the industry’s major technology trends and supplier considerations. Electrification and Hybrid Vehicles (BEVs, PHEVs, and HEVs) By now we all know “the EVs are coming.” For suppliers however, many items need to be examined to ensure success as the market evolves. These items include: • The speed at which BEVs will become cost competitive with internal combustion engine (ICE). Vehicles and this dichotomy will impact the success of BEVs in the marketplace. • OEMs are becoming more dependent on BEV sales to meet increasing fuel economy standards. • While hybrid powertrains may be a cost-effective and near-term answer, global governments are incenting BEVs. • Consumer demand for BEVs remains a question – especially in the U.S. • There are many BEV models competing for a relatively small slice of the light vehicle market, particularly in North America for the next 5 to 7 years. Suppliers need to carefully decide which BEV platforms they invest in to minimize risk, as it is unlikely all new BEV models will meet or exceed initial program volume assumptions. It is also important to plan for existing internal combustion engine technologies, as volumes for these products will decline in the coming years. Safety Technology (ADAS, SAE L1 and L2) Safety technology is of increasing importance for all vehicles. Suppliers working in these product lines need to maintain a careful watch on regulations regarding these technologies. • The market continues to grow for Advanced Driver Assistance Systems (ADAS) – especially automatic emergency braking (AEB) and the related adaptive cruise control (ACC). • More vehicle models are becoming available with highly integrated SAE Level 1 and 2 “driver assist” automated systems. The accuracy of volume and take-rate assumptions will significantly impact both capital and engineering costs. Proactive management of this risk needs to be an integral part of program management for these products. These new vehicle technologies offer both opportunities and challenges for suppliers. It is a must to fully analyze opportunities to maintain profitability and return on capital, all while ensuring timely participation in the growth of these technologies. With the continued pandemic-related issues, parts/raw material shortages, labor shortages, and shipping/logistics issues, it is difficult for suppliers to add these longer-term issues to their list of to-do’s. Yet, now is the time to plan for these emerging technology opportunities. As always, please feel free to contact me at 248.430.5963 or jfream@oesa.org.
Julie A. Fream President and CEO OESA OESA News - 2021 Third Quarter
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TECHNOLOGY UPDATE
Thoughts on Vehicle Electrification in the U.S. Brian Daugherty Chief Technology Officer, MEMA 248.430.5966 │ bdaugherty@mema.org
We are well aware of the media hype surrounding the future of electrified vehicle sales and the more than $300B being invested globally by vehicle OEMs on battery electric technology and vehicle launches over the next several years. However, last year only 2.5% of new vehicles registered in the US were gasoline/electric hybrids and only 1.8% were full battery electric vehicles (BEVs). More than 252,000 BEVs were registered in the US in 2020 – up from 227,161 in 2019 – and Tesla models accounted for close to 80% of them. This is a slight, yet somewhat impressive, increase in Tesla’s US BEV market dominance from 2019 since it is hard to maintain an 80% market share selling anything for very long. In the US, we expect to see 125+ BEV models on the market within the next several years with some projections of 140 models in 2025. Consumers will soon have many more purchase options – everything from full-size trucks and large SUVs to compact cars. As the competition heats up, the BEV market will continue to grow, and Tesla’s share of the market will naturally decrease. I still expect the BEV market to grow much slower than many in the media predict for a wide range of reasons including cost, consumer acceptance, lack of OEM battery capacity, the pains of planning charging, and range anxiety. Did I mention cost? Many of the new US BEVs are targeting the $50K and up market, but it is very unclear how large that market can be. And it will be very interesting to see how many $100K+ BEVs will be sold, but I am betting on not that many. The availability of lower priced BEVs will continue to increase as more mass-market vehicles are available, but whether OEMs can make any money is still a big question. Like any vehicle segment, we will see winners and losers among the many US BEV models. However, the losers may lose a lot. If you take 125 to 140 models and subtract the estimated Tesla share of the annual US BEV sales volume (I assumed a reduced 40% share for Tesla in 2025), you end up with an estimated average of 4000 to 7000 units per year for the others depending on the year. After you also subtract out the non-Tesla models with sales over 40,000 units, you have some exceptionally low annual average sales numbers for the remaining models. Everyone is playing to win, but the opposite is more likely for most BEV models. In the past, many suppliers did not care which engine option was chosen since their parts were on all models regardless of powertrain. But most of these BEV models are on their own dedicated platforms, which means all suppliers will be affected if volumes differ significantly from OEM contract forecasts. This means everything from doorhandles to roof liners, but especially the Class A surface part suppliers that are not supplying multiple models. One of the other narratives in the media is that BEV sales are growing slowly due to lack of available highway DC fast charging capacity. So, if we just build more DC fast chargers, will everyone buy BEVs? In most areas of the country, charging stations are rarely full – except during holiday travel – so where are the constraints? Also, well over 80% of vehicle charging occurs at home and most of the remainder occurs at or near work. It also costs up to 3 or 4 times more for a vehicle 2 │ OESA News - 2021 Third Quarter
to charge at a DC fast charger which – along with convenience – is the reason BEV owners charge at home. Even with the higher charging prices, it is difficult to pay back the capital cost of the DC charging station unless it is used constantly. I believe the main reason for slow sales growth is that a BEV still costs a consumer an additional $15K or more than an equivalent internal combustion engine (ICE) vehicle, and it requires a change in “vehicle lifestyle.” Given these two factors, US consumers may remain reluctant to make the switch. No matter what happens, we will see a dramatic increase in US stop-start and hybrid vehicles sales as OEMs work to meet increasing fuel economy standards. A Slow Transition Another interesting aspect is that the electrification transition is going to take quite some time. The US has over 260 million – and some estimates are as high as 290 million – vehicles in operation. The average age of a vehicle on our roads is approaching 12 years which means that most vehicles will be on the road for 25 years or more. As an aside, many articles confuse average vehicle age with vehicle lifespan and they are obviously very different, yet this leads some pundits to predict a faster transition. Given this longevity – which continues to gradually increase as vehicles are better designed and manufactured – we will have internal combustion engine powered vehicles in the car parc for a very long time. Pick your own number, but even if BEVs account for 20% or more of the overall vehicles sold in the US within a decade, the transition in the car parc will be gradual given that there are so many ICE vehicles already in operation. If you would like to discuss this or any other vehicle technology topic, please contact me. I would be happy to hear your thoughts. Please also consider having the top technology executive from your company join our OESA Advanced Technology Council (see page 14 for details).
Contact Brian Daugherty at bdaugherty@mema.org to learn more about new vehicle technology trends and its impact on the industry. Also learn about the quarterly Mobility Supplier Forums held in Silicon Valley and the OESA Advanced Technology Council. Both are designed to keep industry stakeholders informed of new vehicle technology. OESA News - 2021 Third Quarter
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OESA News - 2021 Third Quarter
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OESA AUTOMOTIVE SUPPLIER CONFERENCE
Register now for the 23rd Annual Automotive Supplier Conference: Beyond Disruption. The daylong event will be held on Monday, Nov. 8, 2021, at the Suburban Collection Showplace in Novi, MI. This is a must-attend event for automotive OEM and supplier professionals to network in-person and hear from industry thought leaders on the future of automotive. The automotive industry has been disrupted. From the ongoing impact of the global pandemic and port delays to the shortage of raw materials and wafers, the government’s focus on infrastructure, and the industry’s push for electrification, disruptions are creating new opportunities and challenges for the industry. This event will feature speakers and panel discussions on how organizations are pushing “Beyond Disruption” to forge a new landscape. Confirmed presenters and panelists include:
Hassane El-Khoury
CEO ON Semiconductor
Jérémie Papin
SVP and Chairman of the Americas Region Nissan Motor Company 6 │ OESA News - 2021 Third Quarter
Julie A. Fream President and CEO OESA
Daniel Pink
Bestselling Author
(Additional speakers to be announced soon.)
Chuck Grey
Jeff Jorge
John Murphy
VP, Vehicle Embedded Software & Controls Ford Motor Company
Principal, Firm Leader International Services Baker Tilly
Managing Director & Lead US Auto Analyst, Equity Research Bank of America
Matthew Renna
Jeff Schuster
Ann Wilson
VP, E-Mobility and Innovation Volkswagen of America, Inc.
Partner, Global Forecasting LMC Automotive
Senior Vice President, Government Affairs MEMA
Conference sponsorship opportunities are filling up fast. Take advantage of the conference to promote your organization to more than 700 automotive supplier executives. Contact Adam Slaman, Manager, Sponsorship Sales and Membership Development, at aslaman@oesa.org or 734.735.0350 to customize available sponsorship opportunities. Platinum Sponsors:
Premier Sponsors:
Presenting Sponsor:
Host Committee:
Breakfast Sponsor:
Register for all OESA events at www.oesa.org. For registration assistance, contact OESA at info@oesa.org. OESA News - 2021 Third Quarter
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MEMBER HIGHLIGHT..SCHWARTZ MACHINE COMPANY
70 Years Young: Schwartz Machine Company Keeping it “All in the Family”! In 1951, 44 year old Edward Schwartz founded Schwartz Machine Company (SMC). He purchased a 5,800 square foot building in Warren, MI, and began his precision machine shop services for the automotive industry. He purchased machines and provided jig boring and surface grinding, lathe work, spindle drilling, and was planning to support short run production work — all focused on providing precision machining for prototype products. In 1953, Edward expanded SMC to manage the increase in demand. Twenty years later called for another expansion, SMC doubled in size. That year Edward decided to keep SMC “all in the family” and brought his son Robert in to manage the company. Over the next few years, SMC purchased additional machinery and Robert bought ½ of the company. Around 1978, Robert saw an opportunity “to go West young man,” and began machining in San Diego to support aerospace and government laboratories. Robert completed his buyout of SMC in 1996.
Recognition, growth and opportunities continued in 1998, when Schwartz was awarded the GM Motorsports Winners Circle Award by supporting the Aurora V8 blocks — Indy and Heads for the SB2 NASCAR engines. Racing became an integral part of the Schwartz mantra as a result of the perfectionism in precision machining for race engines. In 2001, Schwartz supported both LeMANS and Daytona 24-hour races with General Motors. As Robert grew the operation, he welcomed his two daughters to the family business; they became majority stockholders of the company in 2003. SMC continued its love for racing, collaborating with GM, earning them the Driver’s & Manufacturer’s Cup in the Nextel Cup Series in 2006. SMC also supported the R07 NASCAR block and head machining operations to support GM in its racing division. In 2020, Robert reitred. He was aware of the need for diversity and inclusion in business and his thoughts were “spot on,” as very few machining businesses are run or led by women — let alone owned. Thus, his oldest daughter, Ms. Cheryl Schwartz-Zeglin took over the business and was named CEO of SMC. Cheryl has been instrumental in championing the WBENC Certification — validating that a business is at least 51% owned, controlled, operated, and managed by a woman or women. Full certification 8 │ OESA News - 2021 Third Quarter
is expected this summer. Being WBENC Certified will enable SMC to access a vast number of supplier diversity and procurement executives in major U.S. Corporations that accept and seek out WBENC Certification for a diverse supply base. Cheryl also enhanced the SMC team by promoting Mr. Doug Rose, to VP of Operations — a 45-year veteran of SMC, that relies on his team to ensure that every piece is perfect before it reaches the customer; Mr. Frank Balsamo, Manufacturing Manager and Ms. Kim Ziomek, Director - Business Development, who brings a wealth of knowledge and industry contacts, to her trusted advisors. As mobility is driving drastic changes in the industry and a younger generation is poised to enter into the new landscape, SMC remains confident, positioned and prepared to re-broadcast its reputation as a quality, on-time and well-founded precision prototype service company. The past 70 years built a strong, steadfast foundation and in that capacity, Cheryl knows that “times are changing”, however, the fundamental services of SMC can be applied to future machined prototyping opportunities. The new means of mobility — Electric & Autonomous Vehicles (EV/AV), as well as electric motors being added to racing, marine and off-highway agriculture — present a new era of product for SMC to machine. SMC remains true to its customers and its core expertise in machining engine blocks, cylinder heads, and other prototype product. SMC is still operating in the original building with a few modernizations! SMC looks forward to the next 70+ years of iconic changes, fascinating technologies and ensuring that the planet can sustain the next generation of “family businesses.” SMC is being run by family traditions that hold true to the legacy of Cheryl’s Grandfather – Edward; and her Father – Robert; and now, Cheryl. Your Destination for Excellence in Machining Prototypes for the Mobility Industry!
www.schwartzmachine.com OESA News - 2021 Third Quarter
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OESA AUTOMOTIVE SUPPLIER BAROMETER
Optimism Prevails in the Face of New Challenges Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org
According to the Q3 2021 OESA Automotive Supplier BarometerTM Index (SBI) – a gauge to measure the sentiments of North American automotive supplier executives – there is continued disruption to the automotive supply chain. Disruptions caused by input shortages, and the subsequent shutdowns of numerous OEM production facilities, weigh on the optimism of supplier executives despite a strong U.S. economy. Net results indicate an improved reading of 52, an increase of 8 points from the second quarter reading of 44, and 2 points above a neutral reading of 50. The Q3 2021 OESA Automotive Supplier Barometer, sponsored by RSM US LLP, focused on Talent and Human Resources. The results indicate: Production shutdowns stemming from supply chain shortages and issues, as well as the inability to fulfill customer volumes, continue to be the top threats to the industry over the next 12 months. Yet, they have eased marginally. Labor constraints and sales of vehicles in programs supplied are a growing concern. Suppliers are confident in the strength of the U.S. economy as issues related to the pandemic continue to be less threatening to the supply base and the overall economy. • Skills and company cultural gaps widened, as suppliers realize their workers expect a continuation of flexible work arrangements. Suppliers are focusing on increasing internal skills development and changing hiring practices to offset skills gaps, while offering flexibility in work environments and relying on leadership to drive cultural change. • Scarce labor availability and competition from other sectors accelerated hourly employee turnover to extremely high levels. Suppliers are increasing wages and relying on contract employees to offset the shortage of production workers. Signing and retention bonuses were the most successful incentive initiatives. • Cost pressures are mounting as the supply base is budgeting for a 5.4% and 2.9% increase to hourly and salary employee wages, respectively. Additionally, suppliers expect pricing pressure across all other benefit offerings. •
Executive sentiment rebounded into positive territory, despite 1) workforce pressures resulting from the pandemic and 2) the accelerating pace of industry change, contributing to growing gaps between responsibilities and skills across the supplier ecosystem. Suppliers are battling increased turnover, most acutely within their hourly ranks, though supplier resilience continues to shine, with 91% of suppliers actively pursuing efforts to bridge these skills gaps while elevating the role of technology to enhance employee flexibility to attract, retain and empower employee success. The Q3 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. Please see page 12 for RSM's Commentary on this quarter's barometer.
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OESA Supplier Barometer: Q3 2021 Results Describe the general twelve-month outlook for your business. Over the past three months, has your opinion become…? Current Supplier Outlook (Share of Respondents)
Supplier Barometer Index: (SBI and 6m Average) 90
Q3 2021
80 43%
Jan-2021
Jan-2020
Jan-2017
Jan-2015
Jan-2014
Jan-2019
COVID-19 Pandemic
US Trade War Escalates
Japan Tsunami/ Grexit Crisis
Jan-2012
10
Jan-2016
Euro Crisis Begins
20
Jan-2013
30
Jan-2011
Somewhat more pessimistic
Unchanged
40 3%
Significantly more pessimistic
9%
52
Lehman Collapse
50
6%
Somewhat more optimistic
0%
8%
Significantly more optimistic
20%
60
31%
27% 17%
Jan-2010
33% 23%
US Tax Reform
70
Jan-2009
40%
Jan-2018
Q2 2021
60%
175 responses
The outlook for the third quarter rose into optimistic territory as production shutdowns due to supply chain shortages eased slightly, while sales performance of programs supplied deteriorated Q3 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER
1
OESA Supplier Barometer: Industry Threats What are the greatest threats to the industry over the next 12 months? 0%
20%
40%
60%
80%
100%
Average Rating July May
Production shutdowns dueshortages to supply chain… Production shutdowns due to supply chain and issues
2.7
2.5
Inability to fulfill customer volumes (component and raw material Inability to fulfill customer volumes (component and… shortages)
3.0
3.1
Labor Labor availability constraints availability constraints
3.1
3.6
ContinuedContinued issues related to the to COVID-19 pandemic issues related the COVID-19 pandemic
5.0
4.2
Poor sales of sales vehicles in programs supplied Poor of vehicles in programs supplied
5.6
6.4
Implementation of newofgovernment regulations Implementation new government regulations
5.9
5.8
Likelihood of higher interest rates Weakness in the U.S. Economy
5.9
6.3
Weakness in the U.S. interest Economy Likelihood of higher rates
6.0
6.3
6.2
5.6
6.2
6.2
External "black event (geopolitical, natural… External "black swan"swan" event (geopolitical, natural disaster, etc.) Changes in government trade policy Changes in government trade policy 1= Greatest Threat
2
3
4
5
6
7
8
9
10=Smallest Threat
Production shutdowns due to supply chain shortages, and suppliers’ ability to fulfill volumes are the top threats to the 12-month outlook. Suppliers are becoming increasingly concerned over sales of programs supplied Q3 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER
2
Understanding the Gaps – Roles/Responsibilities vs. Skills How do you see this changing over the next 1 to 3 years?
What are you doing to adapt your organization to each of these changes? 0 5 10 15 20 25 Increased Training/Skills Development/Re-skilling
23 11
Change in Hiring Practices
Narrowing Gap 32%
Widening gap 34%
6
Increased Flexibility
4
Monitoring and evaluation
4
Retention Initiatives
No Change 34%
3
Reorganization/Restructuring Increased Communication/Collaboration
2
Succession Planning
2
College Recruitment/Coops/Internships
2 Number of Responses
Suppliers are focused on developing talent internally through training or re-skilling, revamping hiring practices and increasing their flexibility Q3 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER
Link to comments
3
Contact Mike Jackson to learn more about automotive supplier sentiment. He can also provide information on economic and industry trends, as well as the Chief Financial and Chief Purchasing Officers Councils. OESA News - 2021 Third Quarter
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RSM COMMENTARY: OESA AUTOMOTIVE SUPPLIER BAROMETER
12 │ OESA News - 2021 Third Quarter
OESA News - 2021 Third Quarter
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OESA PEER GROUP COUNCIL NETWORK OESA’s Peer Group Councils continue to be ranked as one of the most significant benefits of OESA membership. Supplier industry executives meet quarterly to address issues of common concern with their peers. Members also learn best practices and industry trends through subject matter experts, roundtable discussions and council surveys. Surveys are generated at the request of members on topics that directly impact their roles and responsibilities. As we emerge from the pandemic environment, our councils will offer hybrid meetings. Learn more about the OESA Peer Group Council Network and how you can benefit by becoming a member of one of the council below. Membership eligibility varies by each council. Advanced Technology Council (ATC) The ATC focuses on a wide range of automotive technology topics related to cyber security, CAFE, vehicle connectivity, automated and ADAS technologies, and much more. Contact: Steve Horaney, Vice President, Membership and Sales, OESA (shoraney@oesa.org), or Brian Daugherty, Chief Technology Officer, MEMA (bdaugherty@mema.org) Automotive Public Relations Council (APRC) The APRC discusses topics related to automotive public relations practices and features professional development discussions and PR best practices. Contact: Jeff Laskowski, Senior Manager, Communications, OESA (jlaskowski@oesa.org) Chief Executive Officers Council (CEO) CEO Council members hear from leading industry executives on a wide variety of relevant topics and meet to discuss issues of common concern within the supplier community. Contact: Julie Fream, President and CEO, OESA (jfream@oesa.org) or Michelle Russo, Executive Assistant, OESA (mrusso@oesa.org) Chief Financial Officers Council (CFO) The CFO Council addresses financial management issues within the automotive supplier industry. Members explore a wide range of strategic risk and compliance issues. Contact: Mike Jackson, Executive Director, Strategy and Research, OESA (mjackson@oesa.org) Chief Purchasing Officers Council (CPO) The CPO Council offers compelling insights and actionable content across a broad range of topics pertinent to supplier purchasing practices. Contact: Mike Jackson, Executive Director, Strategy and Research, OESA (mjackson@oesa.org) Diversity, Equity & Inclusion Council (DEI) The DEI Council is committed to driving efforts to promote and enhance diversity and inclusion in the automotive supplier community. Contact: Keiyania Mann, Director, Councils, OESA (kmann@oesa.org)
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Environment, Health, Safety & Sustainability Council (EHS&S) Designed specifically for the automotive supplier industry, members of the EHS&S discuss relevant environment, health, safety and sustainability topics, share peer insight and hear from subject matter experts. Contact: Erin Schrieber, Manager, Membership Recruitment and Development, OESA (eschrieber@oesa.org) Human Resources Council (HR) Known for its lively roundtable discussions, the HR Council draws on the specialized expertise of human resources executives and hears from subject matter experts on relevant issues. Contact: Ginger Juncker, Executive Director, Councils and Member Programs, OESA (gjuncker@oesa.org) Legal Issues Council (LIC) In-house counsel from supplier member companies discuss business-critical legal issues and challenges. Contact: Ginger Juncker, Executive Director, Councils and Member Programs, OESA (gjuncker@oesa.org) MarComm Executives Council (MEC) The most senior marketing communications executives meet to address common marcomm issues and share best practices on topics such as social media, PR, and company branding. Members are regularly invited to comment on industry topics in the media. Contact: April Buford, Senior Director, Communications, OESA (abuford@oesa.org) Operations and Plant Managers Council (OPM) Supplier plant managers and operations managers gather to learn and share issues of common concerns that affect the manufacturing environment. This council meets every other month for 90 minutes. All meetings are virtual. Contact: Steve Horaney, Vice President, Membership and Sales, OESA (shoraney@oesa.org) Sales Executive Council (SEC) SEC meetings cover a broad range of business development and sales topics. Sales leaders from OE suppliers have the opportunity to query OEM representatives, receive sales training and tips, network with industry peers and discuss the latest sales strategies. Contact: Steve Horaney, Vice President, Membership and Sales, OESA (shoraney@oesa.org)
OESA News - 2021 Third Quarter
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OESA PEER GROUP COUNCIL NETWORK Tooling Council (TC) The Tooling Council provides tool makers with the opportunity to discuss best practices and address issues that impact the value chain. The council addresses many industry issues and use the OESA/ HRI Tooling Barometer to better understand the unique operational issues of the tooling community. Contact: David Johnson, Senior Director, Operations and Events, OESA (djohnson@oesa.org) Warranty Management Council (WMC) The WMC is an automotive-centric forum for warranty professionals to discuss the unique topics in their field. OEM representatives are invited to address the group at almost every meeting. Contact: Ginger Juncker, Executive Director, Councils and Member Programs, OESA (gjuncker@oesa.org) Young Leadership Council(s) (YLC) The YLC (a 2-year professional development program) was developed to help member companies develop and retain high-potential employees in all functional areas. Graduates leave the program more prepared for added responsibility and well-equipped for the next step in their career. Nominations are being accepted starting in September 2021 Contact: Keiyania Mann, Director, Councils, OESA (kmann@oesa.org)
OESA Executive Peer Group Councils are rated as one of the most valuable member benefits for automotive suppliers. OESA's councils bring together supplier executives with similar job functions and industry challenges. Quarterly council meetings provide a forum to address issues of common concern, share best practices, and hear from industry thought leaders and subject matter experts. 16 │ OESA News - 2021 Third Quarter
OESA EVENTS
OESA/Axion 2021 Supplier Benefits & Barometer Survey Debrief August 12 | 3:00 - 5:00 p.m. | OESA Conference Center and Virtual
OESA invites automotive professionals across the talent, human resources, finance and operations spectrum to an important session, OESA/Axion 2021 Supplier Benefits & Barometer Survey Debrief, on August 12, 2021, at 3:30 p.m. ET. This event will be held in-person at the OESA Conference Center, Southfield, MI., as well as virtually. Attendees will gain rich insight on employee benefit programs in the aftermath of the pandemic and the current remote work environment. Learn to leverage benefits as a critical talent attraction and retention tool while understanding key cost savings opportunities. An analysis of results of the recent OESA-Axion Supplier Employee Benefits Survey will be provided. Survey participants will receive benchmarking insights, comparing their results to survey averages. Additional topics to be addressed include: • • • • • • • • •
Cost Reduction Initiatives Wellness / Well-Being Offerings and Incentives Medical Plan Participation, Eligibility, Retiree Coverage Telemedicine H.S.A. Plan – Contributions, Enrollment Work-Life Benefits Offered Expected Increase at Upcoming Renewal Voluntary / Employee Paid Benefits Offered Benefits Offered to Union Employees and Cost
Tom Hutchinson, vice president & principal, Axion RMS, Ltd., will review automotive supplier employee benefit survey findings. He will also share insight to enhance employee satisfaction and improve cost while providing insight on which employee benefits are valued most. Mike Jackson, executive director, strategy and research, OESA, and Larry Keyler, partner & global automotive lead, RSM LLC, will highlight findings from the 3Q 2021 OESA Automotive Supplier BarometerTM, which focused on Talent & HR. They will share insights from supplier executives including best practices on return-to-work policies that foster productivity while promoting flexibility and inclusion to bolster employee retention. This event is offered virtually and in person. In-person attendees have a wide range of comfort levels regarding masks and personal space; please be mindful of their preference. • •
Masks will be available but are not required Seating is available with additional social distancing
If you don’t feel well or are uncomfortable being in-person, please consider attending the event virtually. Details are at oesa.org/events. Presenting Sponsor:
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OESA EVENTS
Leveraging Capital and Collaboration to Accelerate Innovation August 18 | 8:00 - 11:30 a.m. | Somerset Inn and Virtual The sequential crises of the COVID-19 pandemic and resulting supply chain disruptions have taken a toll on the economy and auto industry, causing suppliers to have to do more with less. Innovation is the fuel to delight customers, outpace competitors and drive out-sized returns on investments – even more vital in a challenging market environment. Suppliers must assess and prioritize investments in the context of new market realities, while taking calculated risks. To help suppliers learn how firms are reinventing processes to deploy new approaches and leverage strengths, OESA invites members and industry guests to attend, Leveraging Capital and Collaboration to Accelerate Innovation on August 18, 2021, at the Somerset Inn, in Troy, MI. Leading industry analyst, Colin Langan, Automotive & Mobility, Wells Fargo, will kick-off the discussion with a detailed sector analysis. He will share Wall Street perspectives on supplier innovators funding advanced technologies to position for growth through the industry recovery. Jim Penman, Managing Director, Donnelly Penman & Partners, will discuss industry dynamics, highlighting supplier value creation and a new M&A paradigm to optimize capital allocation and investment strategies. Dan Bonucchi, Associate, Warner Norcross + Judd, will give a debrief on the legal landscape within a rapidly changing marketplace, detailing critical factors when establishing M&A strategies and technology partnerships as suppliers position for success within the innovation process.
Dan Bonucchi Associate Warner Norcross + Judd 18 │ OESA News - 2021 Third Quarter
Colin Langan Automotive & Mobility Analyst Wells Fargo
Jim Penman Managing Director Donnelly Penman & Partners
Artur Seidel Vice President Automotive Software Elektrobit
Supplier executives, Rob Hempel, Vice President of Sales, Denso (invited), and Artur Seidel, Vice President, Automotive Software, Elektrobit, with a key Innovation Leader from Novares, will share how suppliers are deploying new technologies and dynamic approaches to speed decision making, add value and fuel success. Q&A panels will follow each formal presentation session. This event is offered virtually and in person. In-person attendees have a wide range of comfort levels regarding masks and personal space; please be mindful of their preference. • • •
Masks will be available but are not required Seating is available with additional social distancing If you don’t feel well or are uncomfortable being in-person, please consider the virtual event option
Sponsors:
Register for all OESA events at www.oesa.org. For registration assistance, contact OESA at info@oesa.org. OESA News - 2021 Third Quarter
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WELCOME NEW OESA MEMBERS Bose
Capture More
Member Representative: Rashaan Josey, Executive Director Global Sales & Customer Management Alternate Representative: John Moloney, Head of Global Sales & Marketing
Member Representative: Dave Burnett, President & CEO
Harris Poll
Hydradyne
Member Representative: Lisa Whalen, Managing Director, Automotive Alternate Representative: Greg Paratore, Senior Consultant
Member Representative: Lon Jennings, Executive VP, Sales and Operations Alternate Representative: Brandy Ford, Executive Office Manager
James Group
Senior Flextronics
Member Representative: Chip Quarrier, Vice President Alternate Representative: John James, CEO
Member Representative: James Sowinski, Business Development Director Alternate Representative: Terry Zillmer, Director of Land Vehicles
WeWire
For OESA membership information, contact:
100 The Mountain Road Framingham, MA 01701 www.bose.com
300 N LaSalle St, Suite 5575 Chicago, IL 60654 www.harrispoll.com
4335 W. Fort Street Detroit, MI 48209 www.jamesgroupintl.com
32000 Northwestern Hwy Ste. 150 Farmington Hills, MI 48334 www.wewire-harness.com
418 North Main St. 2nd Floor Royal Oak, MI 48067 www.capturemore.co
15050 FAA Blvd Fort Worth, TX 76155 www.hydradynellc.com
300 E Devon Ave Bartlett, IL 60103 www.seniorflexonics.com
Member Representative: Paul Nickl, Country Manager, The Americas - Cable Assembly
Tune In! Tune in to "Automotive Insiders" for the latest in automotive and supplier industry news. Learn how companies are thriving in the new mobility landscape. Listen in at VoiceAmerica.com.
20 │ OESA News - 2021 Third Quarter
Steve Horaney Vice President, Membership and Sales 248.430.5969 shoraney@oesa.org
Erin Schrieber Adam Slaman Manager, Manager, Membership Sponsorship Sales and Recruitment Membership and Development Development 248.430.5970 248.430.5958 eschrieber@oesa.org aslaman@oesa.org
OESA EVENTS Upcoming OESA Events: Aug. 12
OESA/Axion 2021 Supplier Benefits & Barometer Survey Debrief
Aug. 18
Leveraging Capital and Collaboration to Accelerate Innovation
Sept. 16
Stellantis North America 22nd Annual Supplier Diversity Matchmaker Virtual Event
Sept. 24
OESA 2021 Master Class Workshop Fall Program: Lead with Gravitas!
Nov. 8
Automotive Supplier Conference: Beyond Disruption
Upcoming Council Meetings:
Aug. 10
Environment, Health, Safety & Sustainability (EHS&S)
Aug. 12
Chief Purchasing Officer (CPO)
Aug. 17
Legal Issues Council - Q3 Segment 2 (LIC)
Aug. 19
Human Resources Council - Q3 Segment 2 (HRC)
Aug. 24
Diveristy, Equity & Inclusion (DEI)
Aug. 25
Operations & Plant Managers (OPM)
Aug. 26
Tooling (TC)
Learn more about OESA’s Peer Group Council Network at oesa.org/councils or call 248.952.6401.
Upcoming 2021 OESA Town Hall Meetings
Mark your calendar for the members-only OEM Town Hall meetings:
Sept. 9
Honda Town Hall
Oct. 5
Volkswagen Town Hall
Dec. 2
Ford Town Hall OESA News - 2021 Third Quarter
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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 the OESA Communications Team. April Buford Senior Director, Communications
Jeff Laskowski Senior Manager, Communications
Abby Napier Communications Specialist
Lexi Putman Member Services Representative
248.430.5964 abuford@oesa.org
248.430.5951 jlaskowski@oesa.org
248.430.5957 anapier@oesa.org
248.430.5959 lputman@oesa.org
