Impact of Overseas Tooling Sourcing by Automakers on U.S. Based Tool & Die Firms

Authors:

Abhay (Abe) Vadhavkar

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Produced By: Materials & Manufacturing Technology

Categories: Stamping, Tool & Die, Tooling

Full Description:

U.S. tool & die manufacturers have provided U.S. automakers a local source for new model tooling for more than a century but, the industry is at a crossroads. U.S.-based shops have experienced a significant decline in new tools sourced from automakers over the past two decades. While cost models continue to improve, CAR researchers think a more comprehensive accounting of financial costs associated with sourcing and producing new tooling in LCCs is needed. Other issues such as tariffs, availability of skilled trades, capacity constraints, the widening technology gap, as well as communication and logistics are difficult to quantify. Even though die manufacturing continues to be on the critical path for automobile model launch, the U.S. tool & die industry is experiencing a rapid decline in business. The three critical action steps that CAR has identified are, developing a comprehensive accounting of all costs associated with overseas sourcing, creating a strategic effort to support U.S. tool & die industry to implement new technologies, and promoting a wide-scale commitment to manufacturing skills development.

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