About 30 percent of suppliers have had to lay off some workers because of the UAW strike against the Detroit 3, but the figure will rise significantly by mid-October, according to a recent survey.
The auto trade association MEMA, which represents more than 1,000 companies in the U.S., surveyed its original equipment supplier members to determine how the strike that began Sept. 15 has impacted the supply chain. The survey found that "nearly" 30 percent of suppliers have had to lay off some direct labor employees, and more than 60 percent expect to start layoffs by mid-October, according to a news release.
"Uncertainty has caused suppliers to move forward more aggressively to put plans in place to reduce costs and manage the situation," Julie Fream, CEO of MEMA Original Equipment Suppliers, told Automotive News, a Rubber News sister publication. "The uncertainty of how long this will be, which plants will be impacted—all of that has challenged suppliers to plan more aggressively to ensure they can stabilize."