MOLDMAKING REPORT: Desrosiers sees rosy outlook for mold orders

Automotive consultant Dennis Desrosiers predicts a strong rebound in the tooling industry over the next few years, driven by an increase of new model launches by the automotive OEMs. Speaking at a recent Canadian Association of Mold Makers meeting in Windsor, ON, Desrosiers reported that the number of new model launches for 2003 and 2004, 65 and 59 respectively, is much higher than average of about 36 new vehicle launches over the last four years.

Desrosiers cautioned Canadian moldmakers from assuming this surge will automatically result in spin-off business. He noted that the number of off-shore transplant companies, or New North American Manufacturers (NNAMs) will grow to 40% of North American capacity in 2010 from 25% today. Suppliers to these companies often follow their customer to the country where the manufacturing is being done. Desrosiers advised Canadians to become more aggressive in working to establish long-tern business relationships with NNAMs.

“Eighty percent of tooling demand in Canada is automotive,” Desrosiers said, noting the importance of the industry to moldmakers.