AD&P; > December 2015 > TALK > Insights from IHS > Michael.Robinet@ihs.com
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INSIGHTS FROM IHS
high-strength steel) will be swift
and broad-based as many OEMs
face compliance defcits in several
key, proftable segments. In the
critical D-segment (mid-size CUVs
and sedans), OEMs will be facing
gaps of 15 to 20% by the end of
the decade—action is required and
costs will rise.
Automated Driving: Driven by con-
sumers and OEMs alike, the impact
of increased automated technology
in the vehicle and infrastructure
will be swift. Several governments
are pressing this agenda in an
efort to improve safety and reduce
fatalities. Automated driving will
not only alter the running gear but
vehicle interiors, styling and how
we interact with our vehicles.
Logistics: OEMs and suppliers
are dealing with the balance of
achieving lower per unit production
costs with the need to lower logis-
tics costs through locating output
closer to the fnal production site.
The latest mantra for bulking
components which do not ship
well are to locate within 25 miles
of the fnal site. This is causing
signifcant consternation within
the supplier community as this
group wishes to maintain proft-
ability and not burden the balance
sheet with additional fxed costs
and "location risk."
People: The challenge to attain both
skilled and unskilled labor is very
challenging—holding back the
ability to expand existing operations,
launch new programs and establish
incremental global locations. Chal-
lenges include pulling existing hu-
man resources away from current
operations to establish incremental
capabilities or channel more ef-
forts towards R&D.; Lack of the right
people is already holding back
several suppliers.
Global Platforms: More volume
with fewer over development
resources will be key going forward.
Over the last two decades we have
witnessed the shift to global struc-
tures—frst being a nuisance for
some to becoming a barrier to move
forward if a supplier did not grasp
the implications and modify their
approach. Global scale is here to
stay as consumers and legislators