U.S. Automakers Prep for Maintenance Wave as Post-Lockdown Demand Skyrockets

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. auto industry is enjoying a rebound following its first full quarter of post-lockdown sales: Demand is up, particularly for SUVs and pickup trucks, partly fueled by cheap credit. In fact, demand has recovered so quickly that many automakers are finding it difficult to fill out their production lines, leading some to raise worker pay and add benefits, according to Reuters. This surprising trend is stressing the need for maintenance at vehicle and parts plants, even if another wave of COVID-19 infections arrives in the fall. Industrial Info is tracking nearly 300 maintenance-related projects at auto and auto-related plants across the U.S. that are set to kick off in the fourth quarter.

Click on the image at right for a graph detailing maintenance projects in the U.S. auto industry that are set to kick off from October through December, by state.

Indiana leads among states in the total investment value for fourth-quarter maintenance projects, with Honda Motor Company (NYSE:HMC) (Tokyo, Japan) accounting for one of the single highest-valued projects: a semi-annual maintenance shutdown at its automotive assembly plant in Greensburg, Indiana, which produces 250,000 Civic models per year. The one-week shutdown is slated for December. For more information, see Industrial Info's project report.

Two other one-week December shutdowns with relatively high investment values are set for the Hoosier State: Allison Transmission's (Indianapolis, Indiana) Automotive Transmissions Plant 4 in Indianapolis, which manufactures transmission and hybrid-propulsion systems, and Pridgeon and Clay's (Franklin, Indiana) automotive stamping plant in Franklin, which features 400-ton progressive stamping presses. For more information, see Industrial Info's reports on the Indianapolis and Franklin projects.

Kentucky is home to the second-highest number of fourth-quarter maintenance projects in the auto industry, with Ford Motor Company (NYSE:F) (Dearborn, Michigan) accounting for two of the largest: semi-annual, two-week shutdowns at its Kentucky Truck Plant and Louisville Assembly Plant, both in Louisville. The Kentucky Truck Plant produces Super Duty pickups and the Lincoln Navigator and Ford Expedition SUVs, while the Louisville Assembly Plant produces the Escape SUV. For more information, see Industrial Info's reports on the Kentucky Truck Plant and Louisville Assembly Plant projects.

When including contractors, Ford's two Louisville plants normally employ a total of more than 14,300 hourly workers. Both plants imposed a two-month hiatus starting in mid-March, and began bringing back workers in mid-May and set up free COVID-19 testing for any employees exhibiting symptoms. Nonetheless, both plants have had to deal with sporadic positive cases since then, including a 32-person outbreak at the Kentucky Truck Plant in August.

Michigan, often considered the auto-manufacturing capital of the U.S., trails Indiana and Kentucky in total investment value for fourth-quarter maintenance kickoffs, but still is looking at a healthy number of projects. General Motors Corporation (NYSE:GM) (Detroit, Michigan) is preparing for an end-of-the-year shutdown at its full-size pickup truck assembly plant in Flint, which makes 250,000 units per year, including the Heavy-Duty Chevrolet and GMC Sierra Crew models. For more information, see Industrial Info's project report.

Michigan also is home to a pair of turnarounds by Denso Corporation (Kariya, Japan), whose various U.S. subsidiaries account for a higher number of projects than any other company. Denso's Thermal Systems North American Center in Battle Creek, which produces automotive air-conditioning and engine-cooling components and systems, and Air Systems Michigan Plant in Battle Creek, which produces tube and pipe components for automotive heating and air conditioning, are set for shutdowns of one to five days each in December. For more information, see Industrial Info's reports on the Thermal Systems and Air Systems Michigan projects.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.