Turning The Market Around

The automotive market is turned upside down right now. Instead of production volume being where we normally expect them to be, we’re seeing production levels dramatically cut and sometimes even shut down for weeks or months at a time. What has been a consistent, reliable industry focused on growth has turned into one with interruptions, stops and starts and uncertainty as to when normal volumes return.

Obviously, the COVID-19 pandemic is the driving factor. Ripple effects from the initial stages of the pandemic with plant shutdowns to the current semiconductor shortage and other supply chain challenges are plaguing what has traditionally been a healthy, robust industry. There are also labor issues combined with unrealized consumer demand that makes forecasting production volumes even more daunting.

As manufacturers grapple with overcoming the obstacles of today, they are also vigorously planning for the future. With climate change a focus across the globe, the automotive industry has prioritized electric vehicle (EV) design, manufacturing and distribution to meet emerging and aggressive regulatory timelines. Consumers are also expecting EV availability to increase rapidly and anticipating more model options soon. Coupled with the current demand for SUVs and light trucks, there is a manufacturing backlog that has to be overcome with aggressive manufacturing schedules that go well into the future.

Since the supplier base is directly influenced by automotive manufacturers and their schedules, suppliers operating in today’s environment have to be flexible, agile and innovative. That requires ingenuity, quick thinking, along with an investment into technology and resources that are scalable and adaptable. The path forward is with “Smart Factory” solutions, especially related to Industry 4.0 (I4.0) and the advances we are already seeing.

With advanced manufacturing platforms, more automation from tools like manufacturing execution monitoring solutions built on SCADA frameworks and expansion of human-machine interfaces, the industry is primed to readily adopt I4.0 standards. Data is a critical element to the success of I4.0 adoption and the adaptability of suppliers to traverse today’s continuously changing landscape and schedules.

The computer chip shortage has caused production levels to drop dramatically.

Insequence is proud to be a long-term partner of automotive manufacturers and global suppliers with advanced solutions that address the just-in-sequence/just-in-time needs of the industry. Combined with world-class manufacturing execution solutions that are integral elements of any production facility, Insequence can provide a comprehensive, robust manufacturing environment. Efficiency, traceability and dependability are achieved with Insequence solutions. More importantly these solutions provide the crucial component to meeting tight deadlines for suppliers and logistics service organizations. We have done it time and again on multiple continents for more than 25 years.

We are excited about the future of manufacturing, even as we navigate the choppy waters of today. The journey is arduous, but we will exit the pandemic and supply chains will be stronger and more prepared to address future challenges. It’s the adage of people, processes and technology all working together harmoniously in partnership that’s necessary to move beyond today’s challenges and into a more promising future. Together, we can turn the automotive industry right side up.


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GO WITH INSEQUENCE.

The Company That Pioneered End-to-End Manufacturing.

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About the author: Tom Mitchell