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OESA AUTOMOTIVE SUPPLIER BAROMETERFOCUS ON HUMAN RESOURCES/TALENT

November 2-4, 201590 Survey Responses

The OESA Automotive Supplier Barometer is published with the support of Deloitte LLP.


OESA AUTOMOTIVE SUPPLIER BAROMETER EXECUTIVE SUMMARY

2OESA Automotive Supplier Barometer- November 2015Published with the support of

Supplier Sentiment Automotive suppliers have an optimistic outlook. November saw a 5 point increase in the sentiment index (to 55) over September’s

neutral level. Confidence in the North American market supports this sentiment improvement.

Employment Overall North American employment will grow more rapidly for suppliers relative to

revenue growth. Europe and Asia Pacific employment will grow slower relative to revenue growth. South America is cause for significant concern and employment levels may fall.

Production 58% of companies are running alternate schedules to meet production

requirements while balancing personnel workloads and preventive maintenance. Use of temporary and contract workers is another avenue suppliers are opting for in

meeting increasing production volumes.


OESA AUTOMOTIVE SUPPLIER BAROMETER EXECUTIVE SUMMARY


Hiring More than three quarters of suppliers are hiring in the areas of engineering,

technicians, skilled trades and production workers and are also having trouble finding qualified, available candidate in engineers, technicians and skilled trade workers.

Filling executive, management and engineering positions is averaging between 3 to 6 months, one month longer than 2014 survey results

Training Training is the number one priority in HR activities for 2016 with the purpose of

engaging workforce, adding skills and closing internal skills gaps. 45% of companies indicate training budgets need to increase 11 to 20 percent to

close the skills gap; up from 36% last year.

Benefits The primary areas of benefit increases are in the areas of employer healthcare

contributions, bonus pools and training resources.


OESA AUTOMOTIVE SUPPLIER BAROMETER DETAILED SUMMARY

4

The Supplier Sentiment Index, judging the suppliers’ change in 12-month outlook jumped 5 points in the November survey from the September base survey. This was driven by a falloff of those reporting being “somewhat more pessimistic” and a very uncharacteristic jump in those reporting to be “significantly more optimistic.”

Suppliers’ attitudes continue to be buoyed by the strong North American market. As one respondent mentions, “Strong Q4 2015 volume hint at a slightly stronger start to 2016.” As always, confidence and investment is driven by new product programs and growing markets. The increasing weight on the North American market is clear as suppliers indicate that the level of salary and production employment will grow more rapidly in North America than the potential change in North American share of their company’s total revenue. On the other end of the scale is South America where employment will grow slower than any change in the South American share of companies’ global sales. As one respondent points out, “[The] North American market [is] most for stability; Asia and Europe are tanking.”

Given the vast number of customer OEM and first tier plants that are squeezing every ounce of production from existing workforces and plants, 58 percent of respondents indicate they are running their plants with alternate work schedules. This is essentially the same as last year. What has changed dramatically is the percentage of production supported by these alternative work schedules. In 2014, 14 percent of the responses noted that 76 percent or more of their production are covered under alternate work plans. In 2015 that percentage has risen to 26 percent. Page 13 describes the wide range of schedules; most of which reflect the balance to increase thru-put without jeopardizing personnel burn out, overlooking preventative maintenance and the like.

OESA Automotive Supplier Barometer- November 2015Published with the support of


OESA AUTOMOTIVE SUPPLIER BAROMETER DETAILED SUMMARY (CONTINUED)

5

Another route to handle increased product development, production and other demands is through contract and temporary workforces. On average, suppliers report they are using 15 percent contract personnel in plants for hourly positions and 5 percent for salaried positions. The median value for contract/temporary workers for corporate salaried positions is 3 percent. More illustrative is the range of responses. For example, companies use from 1 to 50 percent contract employees for their plant hourly positions. This indicates contract employees are not being used only for a stop gap measure but as a strategy to manage fixed costs as contingency workers.

Over three-quarters of the respondents report they are hiring in engineering, technician, skilled trades and production workers. An equally large percentage indicate they are having difficulties finding qualified candidates: from 85 percent for engineers to 78 percent for technicians and hourly skilled trades. Fifty-one percent indicate they are having trouble finding qualified hourly production personnel.

There is not as much – but still significant – interest by suppliers to be in the market for senior executives, general management, general administration or sales and marketing personnel. This does show companies are being very cautious adding personnel to general staffs and overhead versus customer-specific program and production activities. Over all, qualified candidates are easier to find for these positions. One respondent points candidates are harder to find as all job positions are seeing skill levels moving up market; “Engineers are needed to sell, traditional sales people are obsolete without technical knowledge and state-of-the-art production knowledge.”

The shortage of qualified talent showed up clearly in the range of time needed to fill the wide range of positions. Year-over-year, no position was filled in a lesser amount of time. In fact, senior executives, general management, engineering, and hourly skilled trades positions all added one month in the time it took to fill the position.



OESA AUTOMOTIVE SUPPLIER BAROMETER DETAILED SUMMARY (CONTINUED)

6

There has been no significant change year-over-year in the specific talent being sought after in the industry: electrical, quality and software engineers are at the top of every company’s list.

There also has been no change year-over-year in the top issues keeping job requisitions open: the qualifications of the candidates themselves, salary expectations of those that are qualified, and the geographic location of the job. In fact, the top six issues remained ranked in the same order as in 2014.

The importance of various HR activities have been shuffled around since 2014. Training, which ranked third last year, is now the number one priority for HR departments. While Organizational leadership, communication and empowerment slipped to second from first and Career and succession planning slipped a position from second to third. Certainly part of the emphasis for training is upskilling and closing internal gaps but it is also a way to engage the current workforce.

The elements of benefit packages are not expected to change much year-over-year. However, critical aspects including employer contributions to health care costs and bonus pools along with training resources are expected to change the greatest.

Companies are investing in core human resource development training including operational and process training. Internal training and development is rated the most effective strategy to up-skill skilled production workers

Training will continue to be a focus area as 45 percent of the respondents indicate that their company’s training budgets need to increase 11 to 20 percent to close their skills gap. This is up from last year where 36 percent of the respondents chose 11 to 20 percent increase needed to close the gap. This indicates we are slipping back rather than moving forward.



7%23%

52%

18%

0%1%

22%

52%

25%

0%0%

20%

40%

60%

80%

100%Nov-15

Sep-15

IMPROVED OUTLOOK AND SENTIMENT

7

Outlook - 2 Months Sentiment – 1 Year

No. of Responses = 90

6155 53 57

5055

0102030405060708090

100

Describe the general twelve month outlook for your business. Over the past two months, has your opinion become:…?

Sentiment is an index calculated from suppliers’ outlook rating.

50 is the neutral index



LOOKING AT YOUR CURRENT GLOBAL FOOTPRINT, FOR EACH OF THE FOLLOWING REGIONS, HOW DO YOU ANTICIPATE YOUR REGIONAL EMPLOYMENT LEVELS SHIFTING OVER THE NEXT FIVE YEARS?

8

No. of Responses = 43-84

25%

24%

8%

10%

18%

19%

7%

9%

55%

49%

60%

58%

53%

50%

42%

26%

20%

27%

31%

31%

29%

31%

51%

65%

0% 20% 40% 60% 80% 100%

2015

2015

2015

2015

2015

2015

2015

2015

Regionalemployment willgrow greater thanthe regional share ofcorporate sales

Regionalemployment willgrow equal to theregional share ofcorporate sales

Regionalemployment willgrow slower than theregional share ofcorporate sales

N America - Production

N America - Salary

Europe - Salary

Asia/Pacific - Production

Asia/Pacific - Salary

S America - Production

S America - Salary

Europe - Production



6%

20%

18%

25%

31%91% or more76-90%51-75%26-50%1-25%

ARE YOU RUNNING ALTERNATE SCHEDULES TO INCREASE PRODUCTIVITY OR FLEXIBILITY TO MEET CUSTOMER DEMANDS (I.E. 4-10 HOUR SHIFTS, 3 CREWS/2 SHIFTS, ETC.)?

9


Yes51

58%

No37

42%

If yes, what percent of your production are you running on alternate schedules (i.e. 4-10 hour shifts, 3 crews/2 shifts, etc.)?

Yes, 63,

62%

No, 39,

38%

2014

6%8%

17%

14%

55%


Note: For U.S. based Operations


DESCRIBE THE ALTERNATE WORK ARRANGEMENTS ALONG WITH AND ANY PROS/CONS OF THE ARRANGEMENTS.

10

24/7 Operations Alternate 7 day work weeks. Some plants shift to 2-12 hour

shifts. We are running 7/24 and have been for three years. 7 days, 24 hours. We already run 24/7 four crews. 4 Shifts, 2-day crews, 2-night crews, 4 days on, 4 days off.

Allows for 24/7 production with least amount of hours required per employee.

Longer Shifts 12 hours X 2 shifts, Will help short-term; long-term can cause

turnover and low productivity. Three shifts and extended weeks are not uncommon. Primary

concerns are to provided two days off in a row for some special skill employees.

4 shift operations. Con - 2 shifts work excessive overtime. 4 shifts-12 hour days. By using 2x10 hours shifts, we have time for preventative

maintenance activities.Additional Crews 3 crews/2 shifts. Three work crews to cover 7 days per week.4-10 Hour Operations 4-10 and 3-10 split shifts. 4 -10 hour shifts: Monday-Thursday allowing for overtime to

be done on Fridays and allows for employees to have weekends off for off-shift employees.

4-10 hour shifts, and an evening shift for test service support.

Other Weekends on occasion. Extended/overlapping shifts in one area. Overtime. Temporary service. Plant efficiency prime metric, machine utilization

second, technical staff training and efficiency has improved greatly, which is the largest force multiplier. New technology in IT reducing headcount in non-engineering areas.

The weekends are always difficult for maintenance and support.

We use it sparingly, as a temporary gap filler; too much stress on the workforce and their personal lives.

Our UAW represented plants do not have the ability to enter into an alternative shift schedule based on contract language.

Contemplating furloughs for 2016. As the we try to improve capital utilization, it is

having a negative effect on our employees. Only special cases and last resort option. Typically

try to do for less than six months so new capacity or alternative ideas must be part of the plan.



ESTIMATE THE PERCENT USE OF CONTRACT OR TEMPORARY EMPLOYEES YOU NOW USE IN EACH OF THE FOLLOWING AREAS.

11

Number of Responses

Min. –Max.

Lower Quartile

Median Value

Upper Quartile

Contract/Temporary for corporate salary employees (%): 44 1-25% 2% 3% 5%

Contract/Temporary for plant hourly employees (%): 72 1-50% 8% 15% 20%

Contract/Temporary for plant salary employees (%): 39 1-20% 2% 5% 5%

Note: data is calculated from only suppliers using contract or temporary employees.




FOR NEXT YEAR, IS YOUR COMPANY PLANNING TO ADD OR CUT STAFF IN EACH OF THE FOLLOWING JOB AREAS. FOR THOSE AREAS WHERE YOUR COMPANY IS PLANNING TO ADD STAFF, INDICATE IF YOU ARE HAVING TROUBLE FINDING QUALIFIED, AVAILABLE CANDIDATES.

12

9%

5%

13%

9%

24%

26%

24%

27%

52%

47%

41%

38%

14%

23%

19%

19%

3%

6%

88%

88%

72%

51%

12%

12%

28%

49%

0% 20% 40% 60% 80% 100%

Engineering - hiring

- filling

Technicians - hiring

- filling

Hourly Skilled Trades -hiring

- filling

Hourly Production - hiring

- filling

Will increase significantly

Will increase moderately

Will increase slightly

No change planned

Will decrease slightly

Will decrease moderately

Will decrease significantly

Yes, we are having trouble findingqualified available candidates

No, we are not having trouble findingqualified avalable candidates

88% of companies hiring engineers are also having trouble finding candidates

88% companies hiring technicians are also having trouble finding candidates

72% of companies hiring hourly skilled trades are also having trouble finding candidates

51% of companies hiring hourly production workers are also having trouble finding candidatesNo. of Responses = 71-86




FOR NEXT YEAR, IS YOUR COMPANY PLANNING TO ADD OR CUT STAFF IN EACH OF THE FOLLOWING JOB AREAS? FOR THOSE AREAS WHERE YOUR COMPANY IS PLANNING TO ADD STAFF, INDICATE IF YOU ARE HAVING TROUBLE FINDING QUALIFIED, AVAILABLE CANDIDATES. (CONTINUED)

13

5%

3%

6%

15%

17%

30%

35%

36%

70%

60%

49%

41%

7%

6%

9%

3%

53%

55%

31%

56%

47%

45%

69%

44%

0% 20% 40% 60% 80% 100%

Senior Executives - hiring

- filling

General Management -hiring

- filling

General Administrative -hiring

- filling

Sales and Marketing -hiring

- filling

Will increase significantly

Will increase moderately

Will increase slightly

No change planned

Will decrease slightly

Will decrease moderately

Will decrease significantly

Yes, we are having trouble findingqualified available candidates

No, we are not having trouble findingqualified avalable candidates

53% of companies hiring senior executives are also having trouble finding candidates

55% of companies hiring general management are also having trouble finding candidates

31% of companies hiring general administrative are also having trouble finding candidates

56% of companies hiring sales/marketing are also having trouble finding candidatesNo. of Responses = 71-86




IDENTIFY THE AVERAGE NUMBER OF MONTHS TO FILL A REPRESENTATIVE JOB IN THE FOLLOWING AREAS.

14

Number of Months # of responses

Min. –Max.

Lower Quartile

Median Value

Upper Quartile

Senior Executives 52 2-20 4 6 6General Management 56 2-10 3 4 6General Administrative 62 1-6 1 2 3Engineering 72 1-18 3 4 6Technicians 70 1-12 2 3 5Sales and Marketing 61 1-12 2 3 5Hourly-Production 64 1-4 1 1 2Hourly-Skilled Trades 68 1-21 1 3 4

Note: When a respondent identified a range of time, the mid-point was used in the quartile calculation.





PLEASE PROVIDE MORE DETAIL ON THE CRITICAL HR SHORTAGES YOU HAVE AND TIME IT TAKES TO FILL OPEN REQUISITIONS, BEING SPECIFIC ABOUT THE TYPES OF POSITIONS (E.G. WELDING, SOFTWARE ENGINEERING, TEST TECHNICIANS ETC.).

15

Engineering: Electrical engineers (4 responses) Quality engineers. (3 responses) Software engineers. (2 responses) Controls engineers.(2 responses) Mechanical engineers with interior experience. Systems engineers. Process engineers. Manufacturing engineers. Product engineers. Most engineering positions in the US difficult to fill. Engineers with experience in our field were difficult to get a

year ago. Now is much easier because our competitors are laying off.

Qualified engineering positions. Engineer - 4 months (we have rotated several people through

who just have not worked out) Engineering manager: 4-5 months; just haven't been happy

with candidates. Not enough qualified engineers in the area and they don't want

to work at our location Engineering positions are the most difficult to source qualified

candidates.


Skilled Trades: Maintenance (3 responses) Experienced skilled trades in electrical, machine

repair, mechatronics. Electricians. Skilled workers - pipefitters, etc.

Technicians: Need mid-level technicians. Process technicians skilled can be a challenge to

find top talent. Programming technicians are most difficult to find. Service technician.

Purchasing: Buyers. Finding skilled talent in procurement.

Sales: Technical sales representatives are hard to find. Sales engineers.

Quality: Supplier quality assurance is the most critical

position with difficulty to fill.

Tooling: Critical shortages are in tool and die.


PLEASE PROVIDE MORE DETAIL ON THE CRITICAL HR SHORTAGES YOU HAVE AND TIME IT TAKES TO FILL OPEN REQUISITIONS, BEING SPECIFIC ABOUT THE TYPES OF POSITIONS (E.G. WELDING, SOFTWARE ENGINEERING, TEST TECHNICIANS ETC.).


Production: Qualified hourly workers. All manufacturing in Mexico. Skilled machine operators in cold heading are rarely available. Qualified hourly have trouble passing our drug test.

Other: Designers - one year to find qualified candidates. Director of human resources: 3 months General manager: 5 months Four times less job applications, harder to find good candidates, looking outside of state. Market for top talent is hot in southeast Michigan and top talent often requires more compensation than my company is

willing to pay. Developing internal "schools" to train maintenance and skilled trades. Not enough qualified candidates with experience. Competing with larger organization salaries and benefits impacts time to fill.


2.1

4.7

5.4

5.5

5.6

6.3

6.5

6.5

6.6

7.0

RATE EACH OF THE FOLLOWING REASONS THAT YOU BELIEVE PREVENT YOU FROM FILLING THE MAJORITY OF YOUR OPEN REQUISITIONS.

17

48%

6%

10%

22%

14%

12%

9%

8%

5%

3%

4%

5%

4%

17%

20%

13%

10%

10%

6%

9%

9%

10%

4%

7%

10%

6%

9%

19%

6%

10%

6%

6%

3%

2%

19%

11%

26%

15%

22%

18%

20%

15%

13%

11%

6%

15%

11%

14%

9%

10%

11%

18%

4%

13%

10%

10%

13%

13%

11%

6%

15%

9%

11%

6%

10%

13%

15%

14%

20%

13%

6%

7%

6%

13%

18%

16%

16%

13%

2%

10%

5%

9%

8%

8%

10%

10%

18%

0% 20% 40% 60% 80% 100%

Lack of qualified candidates

Salary expectations

Position location

Perceived work/life balance

Advancement opportunities

Job responsibilities

Industry reputation

Company awareness/reputation

Benefit offerings

Perceived long-term employmentstability

Most Prevalent = 1 Rating = 2 Rating = 3 Rating = 4 Rating = 5Rating = 6 Rating = 7 Rating = 8 Rating = 9 Least Prevalent = 10

Weighted rating





AS YOU PLAN FOR 2016, PLEASE INDICATE THE LEVEL OF IMPORTANCE FOR EACH OF THE FOLLOWING PRIORITY AREAS THAT YOUR ORGANIZATION’S HR FUNCTION WILL FOCUS ON TO SUPPORT BUSINESS STRATEGIES AND GROWTH OBJECTIVES.

18

28%

18%

20%

22%

15%

9%

17%

11%

41%

59%

45%

39%

38%

43%

32%

27%

27%

14%

27%

24%

32%

33%

33%

37%

7%

6%

14%

13%

14%

13%

21%

5%

4%

0% 20% 40% 60% 80% 100%

Training

Organizational leadership, communication andempowerment

Career and succession planning

Variable compensation (bonuses, incentives)

Fixed base compensation

Workforce analytics (improve people managementdecisions, control workforce costs, etc.)

Benefits

Work flexibility

Highest Priority = 1 Rating = 2 Rating = 3 Rating = 4 Lowest Priority = 5

Weighted rating


2.07

2.14

2.23

2.35

2.51

2.56

2.57

2.79




FOR NEXT YEAR, IDENTIFY HOW YOUR BENEFIT PACKAGES ARE EXPECTED TO CHANGE COMPARED TO THIS YEAR.

19

23%

10%

4%

4%

26%

25%

28%

10%

6%

4%

7%

9%

45%

44%

54%

81%

91%

88%

84%

84%

24%

7%

4%

3%

5%

5%

4%

0% 20% 40% 60% 80% 100%

Employer health care contribution

Bonus pools

401(K) match

Vacation/PTO days

Life insurance packages

Company vehicle programs

Tuition reimbursement

Training (internal, external,certifications, CPE, etc.)

Increase more than 5% Increase 1-5% No Change

Decrease 1-5% Decrease more than 5% Not ApplicableNo. of Responses = 80-81




RATE THE FOLLOWING TRAINING INITIATIVES THAT YOUR COMPANY IS INSTITUTING OR CONTINUING FOR NEXT YEAR.

20

35%

30%

4%

7%

18%

38%

42%

26%

33%

36%

24%

18%

39%

37%

30%

8%

23%

18%

14%

8%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Operational and process training

Leadership and management training

Personal skills training

Team training

Professional skills training


Weighted rating

• Leadership and management training (e.g. supervision, succession, etc.)• Operational and process training (e.g. health/safety, lean, core, cross, etc.)• Professional skills training (e.g. product, quality, R&D, design, engineering, FMEA, skilled trades, etc.)• Personal skills training (e.g. computer, problem solving, time management, etc.)• Team training (e.g. organizational, continuous improvement, teamwork, etc.)

Please elaborate and describe any other training initiatives you are planning. Business skills training; technical and engineering training; foreign language training. Leadership and team training are highest priorities to align business with our customers. Emphasis on problem solving. Consistent need and requests for operational and process training.


2.0

2.1

2.5

2.8

3.1




WITH RESPECT TO DEVELOPMENT OF SKILLED PRODUCTION WORKERS, PLEASE IDENTIFY THE OVERALL EFFECTIVENESS OF THE STRATEGIES THAT YOUR COMPANY UTILIZES.

21

11% 36%

23%

15%

40%

41%

52%

12%

14%

15%

25%

18%

8%

12%

12%

7%

55%

0% 20% 40% 60% 80% 100%

Internal employee training anddevelopment

Involvement with local schoolsand community colleges

External training and certificationprograms

Creation of new veteran hiringprograms

Extremely effective Highly effectiveModerately effective Slightly effectiveNot at all effective Not applicable, we do not utilize this strategy





ESTIMATE HOW MUCH YOUR TRAINING BUDGET NEEDS TO INCREASE TO CLOSE THE SKILLS GAP YOU FACE.

22

Comments: I don't see it so much as a training exercise, but one more of leadership, communication, and

organization (internally). We had to completely change the way we do training.

2732%

3745%

911%

22%

34%

34%

22%

0-10%11-20%21-30%31-40%41-50%More than 50%Not applicable





MORE ON OUTLOOK AND SENTIMENT

23


SUPPLIER OUTLOOKBY COMPANY REVENUE

24

13%

5% 6% 6% 5%

40%

21%

22%

22%

11%

8%

22% 33

%

20%

26%

33%

42%

56%

44%

72%

54%

56% 42

%

50%

61%

13%

32%

17%

33%

11%

38%

22%

25%

25% 13

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Significantly more pessimistic

Somewhat more pessimistic

Unchanged

Somewhat more optimistic

Significantly more optimistic

<$50 million

$50-$150 million

$151-$500 million

$501 million –$1 billion

>$1 billion

Global AutomotiveRevenue

# of responses

in Nov

# of responses

in Sept

<$50 million 15 19

$50-$150 million 18 9

$151-$500 million 18 13

$501 million -$1 billion 9 12

>$1 billion 20 23

SeptNov


SeptNov SeptNov SeptNov SeptNov

Compared to two months ago, how has your 12 month outlook changed?



SUPPLIER OUTLOOK

Significantly More Optimistic Forecast is growing. Large growth projected domestically. We are entering new markets and developing new products - a lot of new opportunities. Growth globally.

Somewhat More Optimistic We have a lot of new product launching; so far it has been smooth. Volumes are stronger than anticipated for 2015. Some of this enthusiasm is reflected now in 2016. A few conversations with key customers that show some big potential projects in the near-term. New business growth, additional customer in future. Strong Q4 2015 volume hints at a slightly stronger start to 2016.

Unchanged Still see the planned growth. Automotive remains positive, seeing signs of weakening on heavy duty diesel. Business outlook for the next five years remains high. Continued strong demand, stretching capacities. I already felt optimistic about the next 12 to 24 months. Based on our organic growth, we know that our business will continue to expand through 2020.



SUPPLIER OUTLOOK

Unchanged (continued) Auto OEMs continue to invest capital in new engine programs. The growth trajectory over the last six months has been impressive. We are cautious in our belief

that this will be sustained for a long period of time. Although the North American economy is solid and all indications seem healthy - consumers are still

to jumpy. While there seems to be slower growth in China, volumes are steady in the U.S. Continued challenge to retain talent and control costs in rapidly changing industry and competitive

talent market. I am still optimistic. Still positive. Already assuming impact of China slowdown in 2016. Sales forecasts are positive, but the capacity issues (Tier1 and Tier2)in the industry continue.

Somewhat More Pessimistic The automotive market will continue to be strong but our business will have challenges as the

industry to continues to move toward lighter materials. Specific roles are becoming more difficult to fill and develop internally. The strong dollar along with the slowdown in China is having a negative impact on the

manufacturing sector.



SUPPLIER OUTLOOK

Somewhat More Pessimistic (continued) Purchases remain stable. VW scandal. More competitive price pressures than last several years. With the slowing of the industrial markets we are anticipating a trickle down effect to automotive. Pricing pressures. Macro-economic headwinds and potential interest rate hikes. Recent economic indicators starting to show weakness. Our customers are starting to take days out

and new vehicle demand is weakening driving inventories.

Significantly More Pessimistic No responses in this outlook.



OESA AUTOMOTIVE SUPPLIER SENTIMENT INDEX

28

Pos

itive

Neg

ativ

e

7166

50 51

37

52

66 6460

55

4651

55 5562 60

6660 60

56 59 6156 56

6155 53

5750

55

0

10

20

30

40

50

60

70

80

90

100




APPENDIX- PRIOR YEAR COMPARATIVE DATA

29


LOOKING AT YOUR CURRENT GLOBAL FOOTPRINT, FOR EACH OF THE FOLLOWING REGIONS, HOW DO YOU ANTICIPATE YOUR REGIONAL EMPLOYMENT LEVELS SHIFTING OVER THE NEXT FIVE YEARS?

30


OESA Automotive Supplier Barometer-November 2012Published in partnership with

20%7%

14%

13%11%15%

9%13%

7%

13%15%

2%

32%48%

58%

38%53%53%

14%12%

27%

12%13%

23%

65%64%

60%

49%39%

40%

34%40%

46%

27%21%

37%

53%39%

35%

41%31%

28%

55%57%

59%

49%56%

54%

15%28%26%

37%49%

45%

57%47%48%

60%63%62%

15%13%

7%

21%16%

19%

32%31%

14%

39%31%

23%

0% 20% 40% 60% 80% 100%

201220112010

201220112010

201220112010

201220112010

201220112010

201220112010

201220112010

201220112010

Regionalemployment willgrow greater thanthe regional share ofcorporate salesRegionalemployment willgrow equal to theregional share ofcorporate salesRegionalemployment willgrow slower than theregional share ofcorporate sales

N America - Production

N America - Salary

Europe - Salary

Asia/Pacific - Production

Asia/Pacific - Salary

S America - Production

S America - Salary

Europe - Production


ESTIMATE YOUR FIRST HALF YEAR VOLUNTARY TURNOVER RATE FOR SALARY AND HOURLY PERSONNEL.

31

2014 No. of Responses = 73-772013 No. of Responses = 90-962012 No. of Responses = 90

Note: The OESA 2012 survey did not ask about hourly turnover rates


2014 2013 2012

Salary 4653%28

32%

89%

45%

11%

2022%

1416%

2629%

89%

2224%

3033%

1719%

1517%

78%

2123%

2532%

1317%

1520%

912%

1519%

Hourly

1014%

1723%

1318%

79%

2636%


FOR NEXT YEAR, IS YOUR COMPANY PLANNING TO ADD OR CUT STAFF IN EACH OF THE FOLLOWING JOB AREAS? FOR THOSE AREAS WHERE YOUR COMPANY IS PLANNING TO ADD STAFF, INDICATE IF YOU ARE HAVING TROUBLE FINDING QUALIFIED, AVAILABLE CANDIDATES.

32


61

59

54

54

0

3

17

20

25

22

53

47

45

26

7

8

8

27

0% 20% 40% 60% 80% 100%

Engineering - hiring

- filling

Technicians - hiring

- filling

Hourly Skilled Trades -hiring

- filling

Hourly Production - hiring

- filling

Will be adding staff

Will be cutting staff

No change planned

Yes, we are havingtrouble finding qualifiedavailable candidates

No, we are not havingtrouble finding qualifiedavalable candidates

Note: Data labels show number of respondents


87% of companies hiring engineers are also having trouble finding candidates

80% of companies hiring technicians are also having trouble finding candidates

83% of companies hiring hourly skilled trades are also having trouble finding candidates


FOR NEXT YEAR, IS YOUR COMPANY PLANNING TO ADD OR CUT STAFF IN EACH OF THE FOLLOWING JOB AREAS? FOR THOSE AREAS WHERE YOUR COMPANY IS PLANNING TO ADD STAFF, INDICATE IF YOU ARE HAVING TROUBLE FINDING QUALIFIED, AVAILABLE CANDIDATES. (CONTINUED)

33


12

20

22

36

2

3

6

0

66

56

52

43

7

10

2

16

4

5

18

18

0% 20% 40% 60% 80% 100%

Executives - hiring

- filling

General Management -hiring

- filling

General Administrative -hiring

- filling

Sales and Marketing -hiring

- filling

Will be adding staff

Will be cutting staff

No change planned

Yes, we are havingtrouble finding qualifiedavailable candidates

No, we are not havingtrouble finding qualifiedavalable candidates


Note: Data labels show number of respondents


IDENTIFY THE AVERAGE NUMBER OF MONTHS TO FILL A REPRESENTATIVE JOB IN THE FOLLOWING AREAS.

34

Number of Months # of responses

Min. –Max.

Lower Quartile

Median Value

Upper Quartile

Executives 36 2-12 4 5 6General Management 36 1-9 2 3 5General Administrative 38 1-5 1 2 2Engineering 60 1-12 3 3 5Technicians 54 1-12 2 3 4Sales and Marketing 48 1-10 2 3 4Hourly-Production 50 0-5 1 1 2Hourly-Skilled Trades 53 0-9 2 2 4

Note: When a respondent identified a range of time, the mid-point was used in the quartile calculation.




RATE EACH OF THE FOLLOWING REASONS THAT YOU BELIEVE PREVENT YOU FROM FILLING THE MAJORITY OF YOUR OPEN REQUISITIONS.

35

38%

5%

3%

3%

3%

28%

20%

8%

7%8%

9%

5%

3%

12%

24%

24%

13%

9%

11%

15%

9%

7%

7%

5%

15%

9%

13%

14%

9%

12%

11%

9%

5%

9%

11%

19%

24%

22%

17%

16%

8%

11%

15%

3%

1%

12%

9%

7%

7%

7%

9%

7%

5%

14%

5%

11%

13%

8%

8%

13%

12%

7%

8%

15%

9%

12%

15%

25%

13%

20%

3%

4%

11%

11%

16%

8%

13%

19%

15%

3%7%

4%

7%

5%

4%

13%

15%

15%

15%

0% 20% 40% 60% 80% 100%

Lack of qualified candidates

Salary expectations

Position location

Perceived work/life balance

Advancement opportunities

Job responsibilities

Benefit offerings

Industry reputation

Company awareness/reputation

Perceived long-term employment…

Most Prevalent = 1 Rating = 2 Rating = 3 Rating = 4 Rating = 5Rating = 6 Rating = 7 Rating = 8 Rating = 9 Least Prevalent = 10


Weighted rating


2.7

4.4

5.3

5.4

5.7

5.9

6.0

6.8

6.9

6.9


AS YOU PLAN FOR 2015, PLEASE INDICATE THE LEVEL OF IMPORTANCE FOR EACH OF THE FOLLOWING PRIORITY AREAS THAT YOUR ORGANIZATION’S HR FUNCTION WILL FOCUS ON TO SUPPORT BUSINESS STRATEGIES AND GROWTH OBJECTIVES.

36

39%

29%

26%

21%

13%

9%

11%

10%

44%

50%

50%

40%

46%

54%

39%

19%

11%

15%

21%

31%

36%

30%

38%

49%

6%

6%

3%

8%

5%

8%

9%

19%

3%

3%

0% 20% 40% 60% 80% 100%

Organizational leadership, communication andempowerment

Career and succession planning

Training

Workforce analytics (improve people managementdecisions, control workforce costs, etc.)

Benefits

Variable compensation (bonuses, incentives)

Fixed base compensation

Work flexibility



Weighted rating


1.85

1.99

2.00

2.25

2.34

2.36

2.52

2.85


FOR NEXT YEAR, IDENTIFY HOW YOUR BENEFIT PACKAGES ARE EXPECTED TO CHANGE COMPARED TO THIS YEAR.

37

16%27%

12%9%

4%

5%

5%5%

25%

32%31%

28%23%

13%

5%4%

9%4%

6%8%

10%10%

35%

43%36%

55%63%

77%79%

95%95%

84%94%

84%83%

82%82%

39%

8%5%

2%

3%2%

3%

2%

2%

5%

6%5%

3%

0% 20% 40% 60% 80% 100%

20142013

20142013

20142013

20142013

20142013

20142013

20142013

20142013

Increase more than 5% Increase 1-5% No ChangeDecrease 1-5% Decrease more than 5% Not Applicable2014 No. of Responses = 76-77

2013 No. of Responses = 92-95


Employer healthcare contribution

Bonus pools

401(K) match

Vacation/PTO days

Life insurance packages

Company vehicle programs

Tuition reimbursement

Training (internal, external, certifications, CPE, etc.) Training was not a sub-question in 2013


RATE THE FOLLOWING TRAINING INITIATIVES THAT YOUR COMPANY IS INSTITUTING OR CONTINUING FOR NEXT YEAR.

38

37%

26%

14%

10%

4%

37%

41%

40%

34%

22%

21%

23%

32%

36%

42%

3%

5%

14%

14%

23%

3%

5%

5%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Operational and process training

Leadership and management training

Professional skills training

Team training

Personal skills training



Weighted rating

• Leadership and management training (e.g. supervision, succession, etc.)• Operational and process training (e.g. health/safety, lean, core, cross, etc.)• Professional skills training (e.g. product, quality, R&D, design, engineering, FMEA, skilled trades, etc.)• Personal skills training (e.g. computer, problem solving, time management, etc.)• Team training (e.g. organizational, continuous improvement, teamwork, etc.)


2.0

2.2

2.5

2.7

3.1


WITH RESPECT TO DEVELOPMENT OF SKILLED PRODUCTION WORKERS, PLEASE IDENTIFY THE OVERALL EFFECTIVENESS OF THE STRATEGIES THAT YOUR COMPANY UTILIZES.

39

12%

4%

1%

33%

18%

18%

5%

38%

41%

46%

11%

12%

18%

17%

11%

1%

5%

5%

11%

4%

13%

12%

63%

0% 20% 40% 60% 80% 100%

Internal employee training anddevelopment

Involvement with local schoolsand community colleges

External training and certificationprograms

Creation of new veteran hiringprograms

Extremely effective Highly effectiveModerately effective Slightly effectiveNot at all effective Not applicable, we do not utilize this strategy




ESTIMATE HOW MUCH YOUR TRAINING BUDGET NEEDS TO INCREASE TO CLOSE THE SKILLS GAP YOU FACE.

40

4648%

2829%

89%

44%

11%

22%

77%

2014 No. of Responses = 772013 No. of Responses = 96


2013

3039%

2836%

810%

23%

34%

34%

34%

2014


THANK YOU FOR YOUR PARTICIPATION

41

The OESA Automotive Supplier Barometer is a bi-monthly survey of the top executives of OESA regular member companies. The OESA Automotive Supplier Barometer takes the pulse of the suppliers' twelve month business sentiment. In addition, it provides a snapshot of the industry commercial issues, business environment and business strategies that influence the supplier industry. The next survey will be launched on Monday, January 4, 2016 and will be released Monday, January 11, 2016.

For media questions For content questionsand comments, contact: and comments, contact:Dave Andrea Kathy ReissSenior Vice President DirectorIndustry Analysis and Economics Research and Industry Analysis248.952.6401 ext 228 248.952.6401 ext [email protected] [email protected]

OESA25925 Telegraph RoadSuite 350Southfield, MI 48033www.oesa.org

Please note: The information and opinions contained in this report are for general information purposes. Comments are edited only for spelling and may contain grammatical errors due to their verbatim nature. Responses to this survey are confidential. Therefore, only aggregated results will be reported and individual responses will not be released or shared.

Antitrust Statement: This survey content is exclusively about historical data, and respondents/participants should not contact each other to discuss responses, or to discuss the issues dealt with in the survey. It is an absolute imperative to consult legal counsel about any contacts with competitors. All pricing decisions and negotiating strategies should be handled on an individual company basis.

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