Automobile production makes up America’s largest manufacturing sector and contributes to about 3.5% to the country’s total GDP. The millions of jobs associated with designing, producing, and supplying the components that are used to assemble, sell, and service new vehicles plays a massive part in fueling the US economy. Additionally, America’s automakers are among the largest purchasers of aluminum, copper, iron, lead, plastics, rubber, textiles, vinyl, steel, and computer chips.

Innovation in the automotive industry has accelerated the need for expensive parts, components, and functions. At the same time, however, customers are demanding less costly parts for maintenance, and they are therefore changing the way parts are sold and distributed. Existing players in the aftermarket find themselves facing increased competition from private labels and greater e-commerce participation.

With high operating margins and low rates of return, the companies that will thrive are the ones who will learn how to harness their limited resources in creative ways. Now more than ever, executives need to look at how they optimize their supply chain and operations—from suppliers to logistics, and through maintenance, repair, and overhaul (MRO). Optimizing quality, rate, and cost across the entire collaborative supply network is critical to surviving, growing, and achieving competitive advantage. Significant cost improvement opportunities remain in the areas of labor, materials, and advertising, but strides are being made to increase manufacturing efficiencies and to procure better, low-cost materials.

Unlock value, transform operations, catapult growth, and accelerate results in record time.

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Unlock value, transform operations, catapult growth, and accelerate results in record time.

Avaltos Management, and Business Consultants.