N. American Tooling Outlook

January 21, 2019 at 1:41 AM
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Spending on automotive tooling in North America surged 48% to $10.3 billion in 2017 and had been expected to climb another 14% last year.

But delayed or postponed new-model launches caused tooling sales to drop to about $9.1 billion in 2018, notes Laurie Harbour, president and CEO of Harbour Results Inc. She forecasts annual demand will settle at about $8 billion through 2020.

But Harbour cautions that slowing new-car demand and tariff pressures on profits could prompt carmakers to offer fewer trim levels and eliminate some models entirely. She advises the North American tooling suppliers to broaden their customer base and make sure they are sufficiently profitable to handle sales shrinkage.

Click HERE to learn more about Harbour Results.