By Karen Hanna
An industry association poll reveals parts suppliers are starting to feel significant pain from the United Auto Workers (UAW) strike.
In a poll of its members, the Motor & Equipment Manufacturers Association (MEMA) found about 60 percent of suppliers expect to lay off workers by mid-October if the strike continues. Already, 30 percent of suppliers have laid off employees due to the strike, according to an Oct. 3 press release.
Since announcing targeted walkouts of select Stellantis, Ford and General Motors (GM) plants on Sept. 15, the UAW has on each subsequent Friday expanded its strike to hit more plants. In a UAW press release dated Sept. 22, before the latest expansion, the UAW indicated around 18,600 workers were on strike.
According to MEMA, vehicle suppliers employ over 900,000 workers and contribute 2.5 percent of the U.S. Gross Domestic Product.
“There are going to be suppliers — small, medium, and large suppliers — that if this isn't resolved, in the next, call it four to six weeks, that by the end of the year, they’'re going to be out of business,” said Goodsel, who warned the strike could have lingering impacts on the automotive supply chain.
According to MEMA’s survey, more than 50 percent of idled suppliers said they would need at least a week to ramp up production to return to pre-strike levels once the strike ends. The association said it is working with the White House to develop a plan to support smaller suppliers making less than $200 million in revenue.
Karen Hanna, senior staff reporter