OESA News - Second Quarter - Third Edition

NEWS Original Equipment Suppliers Association

2021 Second Quarter │ Edition 3

Automotive Electrification: Opportunity, Risk and Reality June 23, 2021

IN THIS ISSUE...

1 On Your Behalf 2 OESA Automotive Supplier Barometer 4 Automotive Supplier Barometer RSM Commentary

6 IHS Markit: Access the Earliest Sales Numbers

7 Council Highlight: Tooling Council 7 DIAMTS: Price Reductions 8 EY: How to Prepare for the Rise of EVs 10 Council Highlight: MarComm Executives Council

11 Veryable: The Future of Manufacturing 12 14 15 16

and Logistics OESA Events OESA Automotive Supplier Conference Welcome New Members OESA Event Calender

Warner Legal Corner LEGAL TOPICS FOR THE AUTOMOTIVE INDUSTRY Volume Three, June 2021

If You Aren’t at the Table, You May Appear on the Menu: Opportunities and Pitfalls for Emerging Environmental Programs Change is a source of opportunity, but also risk, especially for the unwary. This is certainly true for the auto industry and the evolving landscape of environmental regulation.

As the Biden administration takes form, the auto industry (like many) awaits new environmental initiatives by the U.S. Environmental Protection Agency (EPA). The EPA has pledged bold action on environmental justice (EJ), climate change, stricter tailpipe standards, and enhanced reporting requirements for environment, social and corporate governance (ESG) issues.

For example, while EJ remains somewhat nebulous, the EPA is addressing EJ through: (1) additional facility inspections; (2) “innovative relief” focused on enforcement remedies in local communities; (3) enhanced community communication; and (4) increased federal oversight—including enforcement— where state and local regulators are not as aggressive. In recent weeks, EJ considerations already led to significant (and potentially unsurmountable) air permitting setbacks as well as the dreaded “shutdown” order for a noncompliant source.

The ultimate form of these EPA initiatives remains uncertain, but policies and rulemaking seem likely to drive implementation. As a result, through organizations like OESA, auto suppliers should keep a wary eye on the development of these potentially transformative initiatives and take advantage of the opportunities to influence them, e.g., through stakeholder groups and providing public comments.

Understanding the potential ramifications of these initiatives at an early stage will improve the related advocacy and inform stakeholders of the associated risks, thereby improving corporate planning and decision-making.

In short, if you aren’t at the table, you may appear on the menu.

For more information from Warner’s Automotive Industry Group, visit their webpage or log onto www.wnj.com.

ATTORNEY SPOTLIGHT Kurt Kissling Kurt Kissling is a partner in Warner’s Detroit office who counsels clients across the country on environmental issues, focusing on the Clean Air Act and its local equivalents.

For more than 20 years, Kurt has assisted clients with various air permitting, compliance and enforcement issues. From litigating federal rules in the D.C. Circuit and negotiating nationwide consent decrees with the U.S. Department of Justice to discussing permit conditions or exemption requirements with a local inspector, Kurt’s practice spans the spectrum of potential air issues, big-tosmall. His work experience extends from California, Oregon and Washington to most states along the Atlantic coast.

Kurt’s practice also extends to advocacy on new and modified regulatory programs. He stresses the importance of suppliers tracking discussions about new environmental programs and requirements, many of which originate at the city, county or state level. For example, in ozone nonattainment areas around the country, local rulemaking is mandated to create new restrictions on VOC and NOx emissions that target various aspects of the automotive industry.

Kurt frequently speaks on Clean Air Act issues and serves in various leadership positions, including chair of the Air Committee and council member for the Environmental Law Section of the State Bar of Michigan, as well as director for the East Michigan Chapter of the Air & Waste Management Association. He is also an active member of the Air Policy Committee for the Michigan Manufacturers Association, the Energy and Environment Committee for the Michigan Chamber of Commerce, the SE Michigan Air Quality Study for the SE Michigan Council of Governments, and several additional A&WMA chapters.

Check out Kurt’s full bio here.

Warner’s Legal Corner provides OESA members with educational resources, best practices and updates on law and regulatory changes impacting the automotive supply industry. The automotive environment is ever-changing. That’s why Warner is committed to building a better partnership with OESA and its members.

Click here to access Warner’s Legal Corner Resource Page on OESA’s website.

On Your

Behalf

It has been a little over a year since the world witnessed the death of George Floyd; one of the major catalysts that shed light on systemic societal inequalities in our nation and abroad. It is also, in part, what prompted OESA to do more to increase the awareness and action for greater diversity, equity and inclusion in our workplace and the industry. While OESA’s DE&I journey began 12 months ago, our commitment remains strong and we are making strides. “Be the change you wish to see in the world,” is a popular quote by Mahatma Gandhi and a one that we took to heart as we began our DE&I journey.

OESA and the other divisions of MEMA formed a task force of employees with wide-ranging backgrounds – the All-Together Team – to assess our DE&I gaps and practices and make recommendations to help our members improve their DE&I practices.

Externally, the team: • • • • • •

Formed a DE&I Council, in cooperation with CADIA, to help supplier members learn best practices Hosted an event that featured supplier organizations that have successful DE&I programs Created and publicized a DE&I statement highlighting our commitment Added a DE&I statement to job postings to encourage a diverse range of applicants Is instituting an annual DE&I Barometer to benchmark progress and initiatives in automotive Secured a DE&I ambassador to better understand the needs of the supplier community

Some of our internal accomplishments include: • • • •

Organized quarterly “Courageous Conversations” for employees to address DE&I in the workplace Coordinated monthly “Continuing Conversations” for “deeper” conversations beyond the quarterly sessions Developed a monthly email that provides relevant resources, articles and videos for improving DE&I in the workplace Updated the employee handbook to outline DE&I expectations of every team member

The DE&I work of OESA and the industry is an ongoing endeavor; one we proudly support. Learn how your organization can get involved. For details, contact April Buford at abuford@oesa.org or Keiyania Mann at kmann@oesa.org.

Julie A. Fream President and CEO OESA

OESA News - 2021 Second Quarter

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OESA AUTOMOTIVE SUPPLIER BAROMETER

Supply Chain Disruptions Weigh On Sentiment, Despite Strong Demand Mike Jackson Executive Director, Strategy and Research 248.430.5954 │ mjackson@oesa.org

According to the Q2 2021 OESA Automotive Supplier Barometer Index (SBI) – a gauge to measure the sentiments of North American automotive supplier executives – increased disruptions to the automotive supply chain from input shortages, and the subsequent shutdowns of numerous OEM production facilities, weighed heavily on the optimism of supplier executives. Results indicate a net pessimistic reading of 44, a decline of 18 points from the first quarter reading of 62, and 6 points below a neutral reading of 50.

The Q2 2021 OESA Automotive Supplier BarometerTM, sponsored by RSM US LLP, focused on Supply Chain, Globalization, and Sustainability. The results indicate: •

•

•

•

Production shutdowns stemming from supply chain shortages and issues, the inability to fulfill customer volumes and labor availability are shown to be the top threats to the industry over the next 12 months, and appear to be becoming more widespread and detrimental. However, suppliers are optimistic that demand for light vehicles in the U.S. remains strong due to the strength in the U.S. economy.

Responses show that, over the past three months, 42% of suppliers have had a significant increase in sub-tier supplier distress, up from 34% over the past year, driven by capacity constraints and delivery issues.

Suppliers have witnessed a continued effort to localize production from customers as they attempt to comply with standards in place from USMCA. Consequently, suppliers themselves look to localize within their own supply base to provide compliance value to their customers.

Formal sustainability plans have been adopted by 47% of the supply base, and an additional 22% are in the process of developing one. Plans are centered on carbon reduction, neutrality goals, and eco-friendly material usage and product production.

After a tough year, supplier resilience is being stretched further as firms navigate expanding production shutdowns due to semiconductor constraints and a wide-range of supply chain shortages.

As a result, supplier sentiment has moved into negative territory, despite strong demand. Current market shortages are exerting pressure on suppliers, driving cost increases across raw materials, freight, and talent. These pressures are expected to persist for the near term.

Despite these hurdles, the crisis has prompted leading suppliers to reinforce their supply chains. At the same time, suppliers must pursue a position of long-term strength by advancing EV strategies, innovation initiatives and digital transformation.

The Q2 SBI chart and a full copy of the Supplier Barometer results are available on the OESA website at: https://www.oesa.org/resource/oesa-automotive-barometer-studies.

Please see page 4 to view the RSM US LLP commentary on the Q2 2021 OESA Supplier Barometer results.

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OESA Supplier Barometer: Q2 2021 Results Describe the general twelve-month outlook for your business. Over the past three months, has your opinion become…?

Current Supplier Outlook (Share of Respondents) 80

Jan-2020

COVID-19 Pandemic

Jan-2019

Jan-2015

Jan-2014

Jan-2017

US Trade War Escalates

Japan Tsunami/ Grexit Crisis

Jan-2012

Jan-2009

Significantly more pessimistic

10

Jan-2016

Euro Crisis Begins

20

Jan-2013

30

1%

Somewhat more pessimistic

44

40

9%

Unchanged

Lehman Collapse

50

18%

8% 8%

Somewhat more optimistic

0%

60 23% 22% 17%

Significantly more optimistic

20%

US Tax Reform

70

40%

Jan-2021

43%

Jan-2011

50%

Jan-2010

60%

Supplier Barometer Index: (SBI and 6m Average) 90

Q2 2021

Jan-2018

Q1 2021

199 responses

The outlook for the second quarter fell into pessimistic territory on customer production shutdowns due to widespread shortages of components and raw materials throughout the supply chain Link to comments

Q2 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER

1

OESA Supplier Barometer: Industry Threats What are the greatest threats to the industry over the next 12 months?

0%

20%

40%

60%

80%

100%

Average Rating May Feb.

Production shutdowns dueshortages to supply chain…

Production shutdowns due to supply chain and issues

2.5

N/A

to fulfill customer volumes Inability to fulfill customerInability volumes (component and… (component and raw material shortages)

3.1

3.8

Labor Labor availability constraints availability constraints

3.6

4.9

ContinuedContinued issues related to the to COVID-19 pandemic issues related the COVID-19 pandemic

4.2

3.4

5.6

5.6

Implementation of newofgovernment regulations Implementation new government regulations

5.8

5.0

Changes in government trade policy Changes in government trade policy

6.2

5.3

Likelihood of higher interest rates Likelihood of higher interest rates

6.3

5.8

Weakness in theinU.S. Economy Weakness the U.S. economy

6.3

4.4

Poor sales of sales vehicles in programs supplied Poor of vehicles in programs supplied

6.4

5.6

External "black event (geopolitical, natural…

External "black swan"swan" event (geopolitical, natural disaster, etc.)

1= Greatest Threat

2

3

4

5

6

7

8

9

10=Smallest Threat

Production shutdowns due to supply chain shortages, and suppliers’ ability to fulfill volumes are the top threats to the 12-month outlook; However, suppliers are confident in the strength of the economy and vehicle sales Link to comments

Q2 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER

2

OESA Supplier Barometer: Current Opportunities Based on the current business environment, what do you believe your biggest opportunities are at the moment?

21

Consumer demand EV Segment Business conquest New programs Supply chain improvements Restructuring/operational improvements Maintaining customer orders Localization

Product innovation/technology Raw material production Aftermarket Supply chain consolodation/M&A Vaccine Availability Sales outside of automotive

2 2 2

0

4 4

5

5 5

6

9

10

10

12

16 15

15 Responses

Comments (Selected):

20

•

Making our supply chain more resilient and communicating this as an advantage to our customers to include in the purchasing decision.

•

The pandemic has provided forward-thinking business leaders the cover they may have needed to change from within in response to extenuating circumstances imposed from without. Indeed, many enterprises have vaulted their digital transformation forward five years in the matter of twelve months during the pandemic crisis---a silver lining that was just aspirational at the end of 2019. Advancing our state of the art for new technologies while competitors idle R&D.

•

Make and ship everything we can, customers want it all!

25

Despite a severely disrupted supply chain, suppliers find comfort in strong consumer demand for new vehicles, and new business opportunities from the EV segment and conquest initiatives Q2 2021 OESA AUTOMOTIVE SUPPLIER BAROMETER

Link to comments

3

To learn more about automotive supplier sentiments and economic and industry trends, contact Mike Jackson at mjackson@oesa.org.

OESA News - 2021 Second Quarter

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RSM COMMENTARY: OESA AUTOMOTIVE SUPPLIER BAROMETER

4 │ OESA News - 2021 Second Quarter

RSM COMMENTARY: OESA AUTOMOTIVE SUPPLIER BAROMETER

OESA News - 2021 Second Quarter

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IHS MARKIT: ACCESS THE EARLIEST SALES NUMBERS

How many light vehicles were sold globally last month?

Find out with a click! Access the earliest sales numbers available anywhere. ihsmarkit.com/vehicle-sales-tracker • Initial estimate available on the 1st working day for previous month • Estimates updated with actuals as data is received • 150+ countries – no subscription required • Brand, segment, and fuel type data – available with a free trial • MSRP data aggregates Advance

Estimates available on day 1.

Constantly updated with actuals.

Early

Multiple analytic views

Advance Analyst-derived estimate made prior to the end of the month Early Estimate leveraging various sources Actual Final detailed source

150+ countries

By fuel type

Data is a combination of sales and registration data for vehicles <3.5 tons.

Actual data is supplemented with advanced predictions and early sources until actuals are reported.

6 │ OESA News - 2021 Second Quarter

642249242-0521-MT

Actual

Data status:

COUNCIL HIGHLIGHT

Introduction to the OESA Tooling Council The Tooling Council is a partnership between OESA and Harbour Results, Inc. to provide timely and relevant information to the North American automotive tool and die industry. This unique group has the opportunity to interact with peers who understand the challenges facing the industry every day.

Members of this group include presidents, CEOs, general managers, and other senior executives of automotive tool and die companies. These members gather three times a year to learn, share and network.

Tooling Council meetings consist of three parts. First, topical presentations kick off each meeting with opportune information that aids the members in their daily functions. Past topical presentations include updates on new tool and die technology, production and launch forecasts, as well as legal and regulatory updates. Second, the team from Harbour Results, Inc. share its most recent tooling barometer research. The tooling barometer presentations include survey data from tool and die companies to allow members to benchmark their own operations against their peers. Third, is the member roundtable discussion. Roundtable discussions allow members to ask questions, share experiences, and support one another in the challenges they may be encountering in their operations.

In addition to the traditional meetings, Tooling Council members also receive complimentary admission to the annual OESA/HRI Tooling Update event each October. This event brings together hundreds of tool and die makers, buyers, and relevant parties to hear information and network. Tooling Council members also get the unique opportunity to participate in a private networking event with speakers, customers, and other VIPs. To learn more about the OESA Tooling Council please contact David Johnson at DJohnson@oesa.org or Karen Bohannon at KBohannon@oesa.org.

DIAMTS: Price Reductions

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OESA News - 2021 Second Quarter

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EY: HOW TO PREPARE FOR THE RISE OF EVs

Building the fleets of the future: how to prepare for the rise of EVs

By: Branson Smith, Senior Manager, Ernst & Young LLP branson.smith@ey.com

In some shape or form, you’ve likely heard the following statement as it relates to environmental sustainability: “Electric vehicles are the future!” Indeed, with the recent uptick of electric vehicle (EV) pioneers and an increasing focus on electrification from legacy manufacturers, there are now two million EVs in the US — with EY estimates forecasting that in the US, annual sales of EVs are expected to surpass other powertrains by 2036 and there could be as many as 165 million EVs in operation by 2050.

Continued proliferation of EV adoption, no doubt, will be significant, especially with the adoption of electrified fleets expected to ramp up faster than personal EVs. To date, much of the conversation on EVs has centered around personal use. However, the pandemic has spotlighted the tremendous opportunity in transitioning professional fleet vehicles to renewable energy — and executives are beginning to take notice. For many suppliers, they also beg the question: what kind of EVs are being or will be purchased?

What purpose do they serve now and later, and, perhaps most importantly, who’s buying?

Fleets are ideally suited for transition to EVs u u u

Largely predictable journeys Known daily mileages Ease of smart charging

With nearly 15 million EVs expected to be part of corporate fleets in the US by 2040, it’s clear that EVs will soon become table stakes for companies looking to increase efficiency, lower operational costs, meet ESG targets and generally reduce their environmental impact. EV fleets will transform the automobile industry completely, and suppliers must be ready to maintain growth in today’s current environment, yet also capitalize on these growing trends via a distinct aftermarket and service strategy to help companies build and service their “fleet of the future.”

As demand increases, suppliers must change their product development cycle Since the dawn of EVs, suppliers have traditionally based their product development cycle on the sales rate. This will need to change. In the wake of exponential increases in EV demand around the world, suppliers can no longer take a reactionary view to production and still be sustainable. As demand for traditional products is forecasted to wind down, and demand for EV products and services ramps up, suppliers must embrace a clear, multipronged product development strategy. It will be imperative to take a proactive approach to rapidly evolving EV requirements while still actively managing legacy service businesses.

With EV fleet sales quadrupling from 2014 to 2018 alone, it’s time for suppliers to proactively prepare for the heightened interest in this critical area — building their inventory to not just meet but rather outpace current demand.

That said, in parallel with an aging conventional (non-EV) vehicle pool, special attention needs to be brought to manage the profitable service business of the legacy vehicles for many years to come.

With the rise of e-commerce, delivery systems will change

u

u

Penalties for ICE vehicles entering low-emission zones Favorable taxation

8 │ OESA News - 2021 Second Quarter

u u

Bulk purchasing power High daily mileages = operational cost savings

According to the Institute of Transportation Studies at the University of California, Davis, today, the average EV can only travel 250 miles1, which somewhat limits their capacity for long-distance transportation. However, EVs have shown great promise for companies conducting “last-mile deliveries,” as these vehicles are typically used on a standard route and stored at a depot overnight,

both of which are ideal for EVs. Our current estimate is that as many as 38% of all EVs are already classified as last-mile delivery fleets — with many more anticipated in the coming years.

With global EV sales expected to outstrip all other engine sales by 2035, it’s safe to assume this transition is happening sooner rather than later.

For suppliers today, understanding “how” an EV fleet will be used can be as important as “when” and even “why” the transition is occurring in the first place. Just consider that for many companies, electrifying last-mile deliveries isn’t just a moral imperative or corporate ESG commitment, it’s a legal one, too. Across Europe, almost 300 low-emission zones now ban polluting vehicles, forcing many companies to either switch to EVs or pay a penalty to reach urban customers. Equipped with this knowledge, EV suppliers can know where exactly to anticipate demand and adapt accordingly. In the race to electrification, one thing is clear: you don’t want to be left behind.

Closing thoughts In today’s fast-paced and ever-changing world, we are experiencing profound transformations that extend to all aspects of our daily lives. As demand for EVs continues to proliferate around the world, it’s more important than ever that suppliers prepare for a heightened focus at both a personal and a company level.

rs ie

nc

na

Fi

Suppliers will see a decrease in the importance of certain automobile parts and an increase in other items At first glance, EVs and traditional vehicles may look similar; however, they are operationally quite different. While EVs and conventional vehicles share component parts, there are a large number of new systems used for EVs — from batteries, to charging stations — that aren’t compatible with traditional vehicles.

Automobile manufacturers should carefully develop strategies to address the shifting balance of legacy and EV components, re-evaluate maintenance and diagnostic systems, and rationalize talent needs for future success. By developing pragmatic corporate strategies and evaluating current and future revenue streams, they can get ahead of the curve and prepare for bulk orders from companies looking to completely transform their current infrastructure.

Ch a op rge er po at in or t s

Vehic le lesso rs

Even more so, the door opens for suppliers to play an active role in helping large fleets manage the transition and secure themselves long-service contracts and, to some extent, possibly stepping into a role with direct customer interaction.

ricity Elect ers retail

s

r ure act nuf Ma

Ele c ne tricit ope twork y rat ors

Fleet managers

With a keen eye toward the future, suppliers can quickly take a “boots to the ground” approach to:

•

Determine that necessary new parts (production, service and diagnostics) reach those that need them most

•

Play an active role to help customers and fleet owners through this critical transition and build their EV fleets of the future

•

Remember that, with an effectively managed service parts business that encompasses both rapidly evolving EV parts and legacy components, revenue will exist for many years to come

The views expressed by the author are not necessarily those of Ernst & Young LLP or other members of the global EY organization.

1

Frequently Asked Questions, Institute of Transportation Studies at the University of California, Davis accessed May 2021 via https://phev.ucdavis.edu/about/faqphev/#:~:text=Most%20early%20electric%20vehicles%20(about,350%20miles%20on%20a%20charge.

2

EY data model: 24x more fleet electric vehicles by 2030, Electrive.com accessed May 2021 via https://www.electrive.com/2021/02/03/ey-data-model-suggests-73mn-fleetelectric-vehicles-by-2030/

EY | Building a better working world EY exists to build a better working world, helping create longterm value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US. © 2021 Ernst & Young LLP. All Rights Reserved. ED None. ey.com

OESA News - 2021 Second Quarter

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COUNCIL HIGHLIGHT

Senior Marketing Executives Invited to Join the MarComm Council Automotive marketing executives now have an OESA Council that will provide the opportunity to network, and share and learn best practices. The former Communications Executive Council (CEC) has been renamed the MarComm Executives Council (MEC) to define its expanded focus. In addition to the more traditional communications topics, such as global communications, brand building, and media relations, the MEC will now feature marketing content such as brand and product differentiation, advertising, and other elements of the marketing mix.

Membership eligibility for the council has also expanded; the most senior communications and/or marketing executives at supplier member organizations are welcome to join the council. Membership features 4 quarterly events, complimentary registration to the annual OESA MarComm Summit, and participation in joint council meetings with the OESA Automotive Public Relations Council (APRC).

Members of the MEC also receive press passes to the annual NAIAS (this year, Motor Bella) and are regularly invited to comment on industry topics to the media.

Content from recent council meetings include: improving global and plant communications, the legalities of social and digital media, and media relations with OEMs. Remaining 2021 Meeting Dates • July 21 (Joint with APRC/MarComm Summit) • November 18 Annual council membership is $900 (prorated based on remaining council meetings) with the opportunity to audit a council meeting prior to joining the meeting.

The MarComm Executives Council is facilitated by April Buford, Senior Director, Communications, OESA. To learn more about the council or to audit the next meeting and MarComm event on July 21st, contact April Buford at abuford@oesa.org.

OESA has a council for almost every function at a supplier organization. To learn more about the following OESA Peer Group Councils, click the links below: • • • • • • •

Advanced Technology Council Automotive Public Relations Council Chief Executive Officer Council Chief Financial Officers Council Chief Purchasing Officers Council Diversity, Equity & Inclusion Council Environment, Health, Safety & Sustainability Council

• • • •

Human Resources Council Legal Issues Council MarComm Executives Council Operations & Plant Manager Council Sales Executive Council Tooling Council Warranty Management Council Young Leadership Council

• • • • OESA Executive Peer Group Councils are rated as one of the most valuable member benefits for automotive suppliers. OESA's councils bring together supplier executives with similar job functions and industry challenges. Quarterly council meetings provide a forum to address issues of common concern, share best practices, and hear from industry thought leaders and subject matter experts.

10 │ OESA News - 2021 Second Quarter

VERYABLE: THE FUTURE OF MANUFACTURING AND LOGISTICS

“The Future of Manufacturing & Logistics”

Overview

Features

Veryable is the on-demand labor marketplace for manufacturing, logistics, and warehousing labor. Our flexible labor solution connects businesses with high-quality workers at the click of a button, enabling higher productivity and a competitive edge.

Quality – each operator (worker) is background checked, insured, and rated by other businesses on a 5-star system.

Retention & Flexibility – build a labor pool of “rock star” operators with ability to bring back on an as needed basis, e.g., seasonal, project based, and/or fluctuating demand You control the rate, you control opportunity. No signup fees, no contracts, no minimums - just 30% on the work completed

Business Veryable’s portal allows businesses to: Scale their workforce in real time Respond immediately to demand changes Improve production efficiencies Access to 100% of your local workforce Eliminate overtime Drastically improve your service rates Cut your lead times significantly Build a Labor Pool of rated/flexible operators to bring back, when needed

Operator Operator perks include a variety of benefits: Paid next day Health insurance Credit rehabilitation Discount programs Gain experience in a variety of different roles Build skillset

Find blogs, case studies, and thought leadership here!

Detroit 313.288.0397

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Indy 317.207.2124

Memphis 901.207.8948

OESA News - 2021 Second Quarter

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OESA EVENTS

AlixPartners Global Automotive Study June 8 | 8:30 - 10:00 a.m.

OESA invites supplier members to attend the annual OESA 2021: AlixPartners Global Automotive Study, on June 8, 2021, at 8:30 a.m. ET. This virtual briefing continues OESA’s 11-year partnership with AlixPartners to feature its renown global automotive industry experts and rich insights to help suppliers make informed decisions. AlixPartners’ global vantage point of working with suppliers, dealers, private equity/SPACs and automakers offer a pragmatic look at opportunities and tough choices ahead for industry players.

Topics to be discussed include: •

How global markets recover from COVID-19 and the impact of the supply chain shocks

•

How the industry is handling widespread semiconductor shortages

•

The impact of low initial volumes from EVs and increased capital needs

•

Industry performance and benchmarks

•

The emergence and state of SPAC fueled new entrants, start-ups, tech players and traditional automakers embracing new business models that could upend the traditional industry model

Mark Wakefield, global automotive practice co-lead and Dan Hearsch, Americas automotive managing director, AlixPartners, will provide insights on topics including: •

Global and N.A. market outlook

•

Industry performance

•

Capital allocation, including C.A.S.E investments

•

New business models – challenges facing automakers and suppliers

Presenting Sponsor:

Register for all OESA events at www.oesa.org. For registration assistance, contact OESA at info@oesa.org.

12 │ OESA News - 2021 Second Quarter

OESA EVENTS

Optimizing Transportation Costs and Capacity June 10 | 11:00 a.m. - 12:00 p.m.

The tight full truckload (FTL) market is currently causing rates to rise and service to drop. To help address this challenge, OESA invites members and industry guests to attend the webinar, OESA 2021 Optimizing Transportation Costs and Capacity on June 10, 2021, at 11 a.m. ET. This webinar will examine factors driving current dynamics causing rising transportation costs and tighter capacity availability which is directly impacting automotive suppliers. Attendees will learn why optimization is critical in a tight market as well as strategies to manage costs and transportation capacity.

Rob McNeil, VP & general manager, Transport America, and Zahir Balaporia, sr. director, solutions consulting, FICO, will share insight on the transportation environment. They will also share how Transport America worked with FICO to develop a Dedicated Fleet Optimization solution enabling Transport America to provide improved customer solutions that manage costs while providing more reliable capacity.

Presenting Sponsor:

Automotive Electrification: Opportunity, Risk and Reality June 23 | 9:00 - 10:30 a.m.

OESA invites members and industry guests to attend the webinar, OESA 2021 Automotive Electrification: Opportunity, Risk, and Reality on June 23, 2021. This webinar will review new electric vehicle programs and launch timing, the North American and global electric vehicle market opportunity and forecast, and explore multiple electric vehicle adoption scenarios to evaluate market potential.

Joseph McCabe, president & CEO, AutoForecast Solutions LLC (AFS), will provide an analysis of the global electrified automotive landscape; focusing on new and existing layers, issues shaping the industry, and forecasted production scenarios.

Attendees can expect a better understanding of possible market opportunities for electric vehicles as well as the risk in capital deployed to support an electric vehicle program.

Presenting Sponsor:

Register for all OESA events at www.oesa.org. For registration assistance, contact OESA at info@oesa.org.

OESA News - 2021 Second Quarter

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OESA AUTOMOTIVE SUPPLIER CONFERENCE

Automotive Supplier Conference: Beyond Disruption November 8 | 7:00 a.m. - 6:00 p.m.

Register now for the 23rd Annual Automotive Supplier Conference: Beyond Disruption. The daylong event will be held Monday, Nov. 8, 2021, at the Suburban Collection Showplace in Novi, Mich.

This is a must-attend event for automotive OEM and supplier professionals to network in-person and hear from industry thought leaders on the future of automotive.

The automotive industry has been disrupted. From the ongoing impact of the global pandemic and port delays to the shortage of raw materials and wafers, the government’s focus on infrastructure, and the industry’s push for electrification, disruptions are creating new opportunities and challenges for the industry. This event will feature speakers and panel discussions on how organizations are pushing “Beyond Disruption” to forge a new landscape.

Confirmed presenters and panelists include: • Hassane El-Khoury, CEO, ON Semiconductor • Chuck Grey, VP, Vehicle Embedded Software & Controls, Ford Motor Company • John Murphy, Managing Director & Lead US Auto Analyst, Equity Research, Bank of America • Jérémie Papin, SVP and Chairman of the Americans Region, Nissan Motor Company • Dan Pink, Bestselling Author • Matthew Renna, VP, E-Mobility and Innovation, Volkswagen of America, Inc. • Jeff Schuster, President, Global Forecasting, LMC Automotive Conference sponsorship opportunities are filling up fast. Do not miss the chance to promote your organization to more than 700 automotive supplier executives.

Contact Adam Slaman, Manager, Sponsorship Sales and Membership Development, at aslaman@ oesa.org or 248.430.5958 to customize available sponsorship opportunities.

Platinum Sponsors:

Premier Sponsors:

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WELCOME NEW OESA MEMBERS Grant Thorton LLP

Leer

Member Representative: Jeff Pajauskas, Partner Alternate Representative: Bob Hersh, National Managing Principal Manufacturing Industry

Member Representative: Michael Sislo, Sr./Exec Director Alternate Representative: Matt Baus, VP of Engineering

Multimatic

Rockwell Automation

Member Representative: Syblee Dinu, Administrative Assistant Alternate Representative: Terry Nardone - Director New Business Development

Member Representative: Craig Rutter, Tier 1 Corporate Account Manger Alternate Representative: Renee Pieti, Account Manager Enterprise

171 N. Clark St., Suite 200 Chicago, IL 60601 www.grantthornton.com

25540 Seeley Road Novi, MI 48375 www.multimatic.com

28858 Ventura Drive Elkhart, IN 46517 www.leer.com

1441 West Long Lake Rd #150 Troy, MI 48098 www.rockwellautomation.com

Up2Go International LLC 120 W. Main St. Suite 205 Northville, MI 48167 www.uptogo.com

Member Representative: Doug Fiorani, President Alternate Representative: Ryan Welch, Account Executive

For membership information, contact:

Steve Horaney Vice President, Membership and Sales 248.430.5969 shoraney@oesa.org

Erin Schrieber Adam Slaman Manager, Manager, Membership Sponsorship Sales and Recruitment Membership and Development Development 248.430.5970 248.430.5958 eschrieber@oesa.org aslaman@oesa.org

Tune In! Tune in to "Automotive Insiders" for the latest in automotive and supplier industry news. Learn how companies are thriving in the new mobility landscape.​ Click here to listen to the latest

OESA News - 2021 Second Quarter

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OESA EVENTS Upcoming OESA Events: June 8

AlixPartners Global Automotive Study

June 10

Optimizing Transportation Costs and Capacity

June 23

Automotive Electrification: Opportunity, Risk and Reality

Upcoming Council Meetings:

June 3

Sales Executive Council (SEC)

June 10

Young Leadership Council Alumni

June 17

Young Leadership Council 8 (YLC8)

June 22

Chief Executive Officer Council (CEO)

June 23

Chief Financial Officers Council (CFO)

June 24

Warranty Management Council (WMC)

June 30

Operations & Plant Managers Council (OPM)

Click here to Register.

Upcoming 2021 OESA Town Hall Meetings

Mark your calendar for the Members-Only OEM Town Hall Meetings:

Jul. 15

Zoox Town Hall

Jul. 27

Toyota Town Hall

Aug. 11

Stellantis Town Hall (formerly FCA)

Sept. 9

Honda Town Hall

Dec. 2

Ford Town Hall

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Original Equipment Suppliers Association 25925 Telegraph Rd., Ste. 350 │Southfield, MI 48033-2553 248.952.6401 │oesa.org │info@oesa.org Connect with us on OESA News is provided by the OESA Communications Team.

April Buford Senior Director, Communications

Jeff Laskowski Senior Manager, Communications

Abby Napier Communications Specialist

Lexi Putman Member Services Representative

248.430.5964 abuford@oesa.org

248.430.5951 jlaskowski@oesa.org

248.430.5957 anapier@oesa.org

248.430.5959 lputman@oesa.org