Auto Suppliers Reach for the Scalpel

IndustryWeek (9/1, Katz) – Parts manufacturers try hand at medical-device production to revitalize sales…. more auto suppliers are looking for new growth industries that aren't as cyclical as the automotive market…The cost for smaller businesses, such as Die-Matic, to make the transition might be greater than any long-term benefit they may realize, Cliff Waldman, an economist with the Manufacturers Alliance/MAPI, told the Wall Street Journal in a June 15 article. It also takes a focused and sustained commitment, says Sharland. In the past, many automotive companies have entered other markets and then quickly exited when the auto industry picked up. The Automotive Industry Action Group (AIAG) has responded to the increasing efforts by auto suppliers to retool their product offerings by introducing a medical-device manufacturing program in early August. "It entails trying to help sustain a lot of these enterprises and look for growth opportunities that might not be in the automotive vertical," says J. Scot Sharland, executive director for AIAG, a nonprofit organization representing OEMs, suppliers and service providers.