Survival Advice for Auto Parts Suppliers
With GM and Chrysler in bankruptcy, thousands of small auto parts suppliers are at risk. Partnerships and diversification will be vital.
It is adapt-or-die time for many of the 10,730 small businesses that are lower-tier suppliers to the auto industry, and close to 400,000 jobs may be on the line. But while the situation is daunting, it’s also a time of unprecedented opportunity for entrepreneurs willing to shake up their firms and think creatively, experts say.
- Downsizing to manage costs
- Focusing on capabilities
- Cooperative boosts purchasing power
With U.S. auto production down about a third over the past year, the spotlight has shined brightly on the extensive layoffs at large automakers, including the bankrupt General Motors and Chrysler, and on their so-called Tier One suppliers, many of which are publicly owned subsidiaries of corporations that rival the big automakers in size.
But far less attention has been paid to the struggling, family-owned machine shops, parts suppliers, and tool-and-die firms that are at risk of closure if they worked primarily for GM and Chrysler, both of which are shutting down some of their production lines this summer.
Similar Posts:
- EZPay, Payment Tool for Small Biz
- White House Eyes Bailout Funds to Aid Small Firms
- New Bill Could Divert Billions in Small Business Contracts to Corporate Giants
- Do your homework before applying for federal business loan
- Some things beat a hefty paycheck
- Forming an Alliance? Plan for Your Break Up
- The risks of running an ethical business
- Free AK-47 for every pick-up truck
- 101 Setting Up a Home Office
- What Do Successful Small Businesses Do That You May Not?
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
