Every other month, the Original Equipment Suppliers Association (OESA) conducts the Automotive Supplier Barometer to survey its members on major issues and concerns. From the 79 survey respondents, the Supplier Sentiment Index (SSI) remained the same as the September level, in the positive range at 56. The major shift in outlook opinions came from an increase in the “somewhat more optimistic” view, but also an increase in the “somewhat more pessimistic” view. A slight decrease in the “significantly more optimistic” view left a balanced SSI. The increase in optimism came primarily from companies with revenue of $150 million or less. The increased pessimism was from companies in the $500 million to $1 billion in revenue. Though markets and sales remain the cornerstone of optimism, the OEM warranty/recall issues and global economic and political volatility continue to drive pessimism.
In addition to the SSI, the November OESA Automotive Supplier Barometer surveyed members on human resource issues relating to staffing, benefits and training in the United States. Additional survey results showed:
- As companies plan for 2015, the priorities within HR functions are in the areas of organizational leadership, communication and empowerment along with career and succession planning; both were also cited as the most important priorities in 2013. Training is also seen as important while work flexibility is seen as less of a priority, though is a major discussion point.
- Salary turnover rates are increasing. Data from 2013 indicated an improvement in salary turnover rates. However, this year, rates again closely resemble levels from 2012. Hourly turnover appears to be increasing as well.
- Finding qualified available candidates for open positions for engineers, technicians and hourly skilled trades continues to be difficult. Much like last year, for those companies planning to hire engineers, 87 percent are having trouble filling those positions; 80 percent of companies hiring technicians are finding it difficult to hire and 83 percent of companies looking to hire hourly skilled trades workers are having trouble finding qualified available candidates. The job classification that continues to have the most critical HR shortages is engineering.
“The current positive outlook shows perseverance by suppliers,” said Dave Andrea, senior vice president, industry analysis and economics, OESA. “The supply base is managing its human resource challenges while meeting the increased pressures brought on by new vehicle launches, industry recall activity and strong North American production schedules.”
A full copy of the November OESA Automotive Supplier Barometer survey results and the Sentiment Index chart (jpeg) are available on the OESA website at: http://www.oesa.org/Knowledge-Center/Automotive-Supplier-Barometer.
About the OESA Automotive Supplier Barometer
The OESA Automotive Supplier Barometer takes the pulse of OESA regular members and provides a snapshot of the business environment, commercial issues and supplier strategies. OESA appreciates the support of Deloitte LLP with OESA Automotive Supplier Barometer. As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and Deloitte Financial Advisory Services LLP, which are separate subsidiaries of Deloitte LLP. Please see http://www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. This OESA Supplier Barometer (the “Barometer”) has been funded by Deloitte LLP. Any views, opinions or conclusions presented in the Barometer are solely those of the respondents and/or OESA and do not represent those of Deloitte LLP or its subsidiaries.
About OESA
Formed in August 1998, OESA provides a forum for automotive suppliers by addressing issues of common concern through peer group councils, serving as a reliable source of information and analysis, providing an industry voice on issues of interest and serving as a positive change agent to the automotive industry. With more than 450 members having global automotive sales exceeding $300 billion, OESA represents more than 70 percent of North American automotive supplier sales. For more information, visit http://www.oesa.org. OESA is the original equipment division of the Motor & Equipment Manufacturers Association.
