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Economic Forecast 16 MoldMaking Technology —— JANUARY 2016 Survey Says The OESA/HRI Automotive Tooling Barometer survey series was cre- ated by the Original Equipment Suppliers Association Tooling Forum in partnership with Harbour Results Inc. to provide an indicator of the current state of the automotive tooling industry and the perception of the near-term prospects for the industry. This survey captures the sen- timent of the major companies in this market. The survey is conducted three times a year, distributed to 500-600 tool and die companies and company/facility executives. For example, for the August 2015 survey, 66 percent of respondents were moldmakers, 32 percent were tool and die makers, and 3 percent were fxture and jig makers. Revenue ranged from less than $5 million to $500 million, with a majority (62 percent) in the $5-30 million range. Harbour Results Inc. is a business and operational consultant frm for the manufacturing industry, offering operational and strategic advisory expertise, and proprietary assessment programs to help optimize a busi- ness' performance. Focused on small to medium-sized manufacturers, many of which are family-owned or privately held. OESA provides a fo- rum for automotive suppliers by addressing issues of common concern through peer group councils, serving as a source of information and analysis, providing an industry voice on issues of interest, aiming to serve as a positive change agent to the automotive industry. With 450 mem- ber companies having global automotive sales exceeding $300 billion, OESA represents more than 70 percent of North American automotive supplier sales. OESA also formed the Tooling Group to provide a forum for toolmakers (tool and die fabricators as well as fxture and gage mak- ers) to discuss industry issues, share best-practice information and work together to solve issues that affect the entire value chain. The group cur- rently has 31 members. Product is Becoming More Complex FIGURE 3 Increased complexity in products can be found across nearly all industries, from washers and dryers to airplanes and more. Some manufacturers are developing methods and strategies to assist in managing the complexity, while others are not. Companies that do not address it face increased product devel- opment time and costs, as well as additional costs associated with the need for more tools and higher launch costs. This is not sustainable in the long term. For mold manufacturers, increased product complexity results in an increased demand for tools, which, of course, is positive for the industry. However, with manufacturing costs on the rise, companies will be looking for ways to squeeze cost out of the manufacturing process, especially at the tooling level. It will become increasingly important for mold manu- facturers to drive efficiency improvements and focus on the customers and programs that are profitable. 3. China Since recording double-digit growth in 2010, the Chinese economy has significantly slowed, and the world's second-larg- est economy is expected to continue to deteriorate in the near term. China's exports are significantly decelerating as well, which indicates a decrease in the global economy leveraging the country as a low-cost resource (see Figure 4). However, in the tool and die segment, demand from North America is on the rise with a compound annual growth rate (CAGR) of 13 percent since 2010, and it is predicted to continue