MEMA survey details supplier layoff concerns

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MEMA's Original Equipment Suppliers says its most recent survey indicates the vehicle supply base continues to feel impacts from the ongoing strike between the UAW and Detroit’s Big Three manufacturers.

MEMA says the survey, collected from Oct. 16-18, 2023, indicates: 

[RELATED: Auto suppliers increase layoffs due to UAW strikes]

  • Concerns over sub-tier financial viability remain heightened, with 79% of all suppliers surveyed indicating they are concerned.
  • The percentage of smaller suppliers that are concerned with their internal financial viability increased dramatically to 42%.
  • Supplier estimates of the ramp-up time to get facilities back to pre-strike levels has increased to 1.5 weeks; the greatest challenges to restarting operations remain retaining labor and material availability.
  • Of the 84% of suppliers that have received cancelled orders from their customers, 95% indicate they have received short to essentially no notice.
  • The percentage of suppliers that have laid off their direct and indirect labor employees remains essentially unchanged week over week, with 80% of suppliers who have yet to begin layoffs indicated they will begin in early November if the strike is not resolved.  

MEMA says This survey was conducted via email to 546 MEMA Original Equipment Suppliers members. There were 52 respondents.

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