As I said at a recent conference in Windsor, our industry is improving, releases are up and we are slowly getting back to work. However, this will be a slow process and the "new normal" for North America will be several million units less than before the recession. Canadian suppliers have dramatically lowered their breakeven points at 50% lower volumes than before, not uncommon. This is a real accomplishment in our capital intensive industry.
This is not easy to do but you are not alone. APMA has worked with government and government agencies to assist you. There are now four programs that APMA initiated: BDC's PO Financing Program, APMA Market Intelligence Program (AMIP) with NRC, APMA's Operation Effectiveness in Manufacturing (OEMP) and APMA's Energy Savings program with Natural Resources Canada. All of these are a hand up - not a hand out and require your active participation. They can really help you through these turbulent times. For the OEMP we now have recorded cumulative savings of $14 million for all participants and $100 million in new business and for the Energy Savings (just started) we are averaging $15,000 savings per year with minimal capital investment. These savings are repeated year after year at no additional cost.
The Federal Government has established the Southern Ontario Development Program through FedDev Ontario. This program will provide funding for organizations to help enhance competitiveness and strengthen local economies and it applies to manufacturers as well, satisfying specific criteria.
To assist you, APMA is working on the following initiatives over the next few weeks, including a Financing Programs seminar on October 29, 2009, a Canada-Japan Business Symposium in November, a "Supplier Day" opportunity at Volkswagen and our Annual Outlook Conference, both in December.
Our latest upcoming project is harnessing solar energy by placing solar panels on your roof. As a group, APMA will obtain a quality, high value benefit for you which is currently being worked on. In the meantime, make sure you do not give up your roof space to some less than scrupulous roof consolidator for little compensation. Remember the issues with "natural gas" brokers appearing at your door?
1 Comment
As we visit various suppliers across the Province it is very clear that the "new normal" will have a direct effect on manpower levels. By that I mean, that companies are not rushing to backfill positions previously vacated. Unfortunately, they have cut manpower levels to such an extent that there are no resources to make inprovenents in their fundemental manufacturing systems.
Simply put, that means they are not taking cost or waste out of the products and services - which ultimately will hurt there overall competetiveness. Ontario's manufacturers need to consider this delema - don't be caught in the false image that a company is Lean because they have cut their manpower. Actually, the cutting of manpower to such levels, although temporarily necessary, will prevent an organization achiving manufcaturing excellence by taking all waste out of the systems - administrative as well as manufacturing.
Would you like to comment?
You must be a member. Sign In if you are already a member.