U.S. Auto Industry Plans Maintenance as Supply Lags Demand

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. auto industry is at a crossroads: Vehicle sales are down sharply from the same period last year, yet manufacturers are selling their models at a brisk pace with little inventory buildup, according to The New York Times. The problem? The number of vehicles manufactured for sale is declining, partly due to supply-chain obstacles affecting auto parts and computer chips. Thus, keeping existing facilities in top shape will be crucial for manufacturers across the industry. Industrial Info is tracking more than 300 maintenance-related projects at U.S. automotive industry plants that are set to begin construction in the third quarter.

Click on the image at right for a graph detailing the top plant owners for U.S. auto industry maintenance projects set to kick off from July through September.

The top three auto-related companies for third-quarter maintenance projects in the U.S. are parts manufacturers: Denso International America Incorporated (Southfield, Michigan), Autokiniton (New Boston, Michigan) and Martinrea International Incorporated (Vaughan, Ontario), each of which has $5.5 million worth of projects kicking off. Parts shortages forced U.S. automakers to slow--and sometimes halt--production throughout 2021, a trend that has continued this year.

Denso is performing semi-annual maintenance shutdowns on several of its units in Maryville, Tennessee, including its main production facility (Plant 101), electrical equipment facility (Plant 201), engine-control unit facility (Plant 202) and starter alternator facility (Plant 203). Each project is expected to last about one week and finish by the end of this month. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read detailed project reports on plants 101, 201, 202 and 203.

Martinrea has a similarly strong presence in the U.S. South, where several hot-stamping facilities are set for maintenance. These include a heavy parts-stamping facility in Shelbyville, Kentucky; a frame-stamping facility in Tuscaloosa, Alabama; and a panel-stamping facility in Springfield, Tennessee. Each is expected to last about one week and finish by the end of July. Subscribers can read detailed reports on the Shelbyville, Tuscaloosa and Springfield projects.

Autokiniton subsidiary L&W Engineering is performing maintenance across the Great Lakes region, including a metal-stamping plant in Holland, Michigan; a panel-stamping plant in Elkton, Michigan; a frame-parts plant in Bellevue, Ohio; and a general parts plant in Auburn, Indiana. Each project is semi-annual and is set to wrap up the end of this month. Subscribers can read detailed reports on the Holland, Elkton, Bellevue and Auburn projects.

Among U.S. vehicle manufacturers, Ford Motor Company (NYSE:F) (Dearborn, Michigan) bucked the second-quarter downward trend by posting a 1.8% sales increase, led by a particularly strong performance in June. The company said its F-Series truck lineup, Explorer and Expedition SUVs, and its battery-electric vehicles were the biggest sales drivers.

Ford is preparing for a semi-annual maintenance shutdown at its Kentucky Truck Assembly Plant in Louisville, Kentucky, which produces its F-250 to F-550 Super Duty trucks, as well as its Expedition and Lincoln Navigator models. A concurrent shutdown is planned at the Kansas City Assembly Plant in Kansas City, Missouri, which manufactures the F-150 and battery-electric E-Transit models. Subscribers can read detailed reports on the Louisville and Kansas City projects.

Global supply-chain disruptions also have affected the tire-manufacturing sector, despite demand returning to pre-COVID-19 levels, according to Modern Tire Dealer. Titan Tire Corporation, a subsidiary of Titan International Incorporated (NYSE:TWI), is performing maintenance at its tire-manufacturing plants in Des Moines, Iowa, and Freeport, Illinois, which produce 11,250 and 8,100 units per day, respectively. The Freeport plant specializes in tractor tires. Subscribers can read detailed reports on the Des Moines and Freeport projects.

Subscribers to Industrial Info's GMI Project Database can click here for a list of detailed reports related to projects mentioned in this article, and click here for a list of related plants.

Subscribers can click here for a full list of detailed project reports for maintenance projects in the U.S. automotive sector that are set to kick off from July through September.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).