Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Motion Industries rebrands as 'Motion'
      USW opposes Taiwan tire makers' dumping counterproposal
      Goodyear-branded transmission belts set to return
      Hot topics at virtual CES: AVs, air taxis and drones
    • USW opposes Taiwan tire makers' dumping counterproposal
      Greenergy, Haldor Topsoe tech turns tires to fuel
      India decides against extending carbon black duties
      GRI expanding ag tire capacity at 3-year-old Sri Lanka plant
    • Motion Industries rebrands as 'Motion'
      Proto Labs to buy e-commerce company 3D Hubs for $280 million
      NewAge Industries celebrates 15 years of employee ownership
      India decides against extending carbon black duties
    • Nynas expects to be stronger after reorganization
      Synthomer CEO MacLean to step down by early 2022
      Safic-Alcan and Arkema working together on distribution deal
      India decides against extending carbon black duties
    • Proto Labs to buy e-commerce company 3D Hubs for $280 million
      Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
    • WCCO task force navigates pandemic, expands communications
      ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
    • Synthomer CEO MacLean to step down by early 2022
      ARP Materials adds technical sales manager
      Jack Murphy joins Akron Dispersions
      Adriano Alfani named Versalis CEO
    • USW opposes Taiwan tire makers' dumping counterproposal
      India decides against extending carbon black duties
      Hot topics at virtual CES: AVs, air taxis and drones
      Paycheck Protection Program funding reopens Jan. 15
    • Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
      Column: Still far way from normal
    • Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
      A comparative study looking at effects of curing kinetics and batch variation on SBR injection molding and numerical analytics
    • Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Nova thinks outside the box with sealing tech
      New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Motion Industries rebrands as 'Motion'
      USW opposes Taiwan tire makers' dumping counterproposal
      Goodyear-branded transmission belts set to return
      Hot topics at virtual CES: AVs, air taxis and drones
    • Proto Labs to buy e-commerce company 3D Hubs for $280 million
      Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
    • Bridgestone bets on guayule as alternative natural rubber source
      Synthomer CEO MacLean to step down by early 2022
      Jack Murphy joins Akron Dispersions
      Synthomer optimistic, raises earnings forecast
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Selectâ„¢: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2020 International Silicone Conference Virtual Edition
      2020 ITEC Virtual Edition
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
August 19, 2016 02:00 AM

Editorial: Auto industry spending winds up in unlikely place

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Sometimes things aren't as you'd expect. Or as presidential candidates may want you to believe. One of the big assumptions is that NAFTA has cost the U.S. manufacturing jobs that have gone to low-wage Mexico.

    And because nine of the last 11 new North American vehicle assembly plants have gone to Mexico, it also might be assumed that suppliers to the auto industry are putting their investment dollars mostly south of the border as well.

    But that's not necessarily the case. A study by the Center for Automotive Research shows that over the past decade, suppliers have put the vast majority of their capital spending in the U.S.

    During that period, the supplier network has spent a total of $48.4 billion to build or expand its factories in the U.S. Of that amount, a whopping $44.4 billion went to the U.S., $3.4 billion to Mexico and a paltry $580 million to Canada. That despite the fact Mexico still holds a huge gap in wages, with auto assembly workers making $31.29 an hour in Canada, $27.83 in the U.S. and $6.12 in Mexico.

    All of this investment has allied fears by the automotive community that suppliers wouldn't be able to ramp up capacity enough following the recession as the industry has bounced back with a string of six consecutive years of growth.

    When looking at the post-recession surge of 2010 through June 2016, the CAR study showed the auto industry as a whole—including auto makers—spent $80.7 billion in U.S. operations, more than triple the $25.8 billion in Mexico.

    Where the money is going in the U.S. also might be a bit surprising. With all the foreign car makers setting up assembly operations in the Southern U.S., it might be assumed the lion's share of new investment is going there. And though the region did garner $15.6 billion in total spending for new plants and expansions, an eye-opening $50 billion was spent in the Great Lakes region, which still has a higher concentration of plants.

    The authors of the study predict that the new shape of the North American car industry may see three regions battling for investments as a new supply chain takes shape. More money likely will flow to the South as foreign car makers expand production there, and a good number of suppliers will look to set up shop in Mexico as its vehicle output heads toward the 5 million units projected for 2020.

    But the Great Lakes region and its built-in infrastructure will continue to compete for these funds.

    The obvious loser in the automotive game has been Canada. The country's fluctuating currency, less of an advantage in health care costs than in the past and a supply base far removed from the industry's growth regions, will continue to make our northern neighbors less competitive.

    Related Articles
    Rewards for a job well done
    Study shows tension high between car makers, suppliers
    Tires suffer from lack of respect despite technology
    Lots of numbers but what do they mean for industry
    Bridgestone looks to capitalize on Olympic prestige
    How perceptions are forged
    Auto suppliers top $10 billion with first half merger activities
    Auto suppliers hope for the best, prepare for the worst
    Disruptors to shape auto industry's future
    Don't think only tire brands carry weight in industry
    Vintech eyes Europe as it grows further as global auto Tier 2
    Activity heating up with development of alternative NR
    Mining industry: Prepare for best, plan for the worst
    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION