July Maintenance Programs Heat Up for the Automotive Industry

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Researched by Industrialinfo.com (Houston, TX) - Summer 2003 maintenance activity will heat up as major Tier Suppliers and automotive makers prepare for semi-annual plant shutdowns. This July will be a hot month as 100 plants across the U.S. and Canada will perform maintenance shutdowns for repair and overhaul activity totaling over $220 million in spending. What proves to be a typical occasion for the automotive industry, the "Big Three" or should we say the "Big Five" including Honda and Toyota, take down their major assembly operations during the 4th of July week, and at the same time tier suppliers shutdown their operations for maintenance as well.

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For the 3Q03, Industrialinfo.com has identified ten shutdowns in Canada valued at $17.5 million, and 90 shutdowns valued at $211.5 million. These maintenance shutdowns will occur at 17 major assembly plants worth an investment value of $49.5 million and the remaining 83 plants or $179 million will occur at Tier Supplier locations. Tier Supplier plants range from parts and accessory manufacturing to body panel stamping operations, engine block and assembly plants, automotive batteries and vehicle lighting. Another big industry in the automotive sector is the tire producers. There are 19 plants in this group that will shutdown in July and spend approximately $36 million on Maintenance Repair & Overhaul (MRO).

Producers and Suppliers typically utilize the summer time to take down major manufacturing units and utilities for MRO and also to complete any capital tie in work. The average major shutdown last up to 2-weeks. Each year the summer is one of two periods during the year that suppliers and producers take advantage of major maintenance work. The second period is during late December between Christmas and New Years Eve.

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