Auto equipment suppliers gave a bleak outlook for the auto industry in Q4 2019 according to a report from the Original Equipment Suppliers Association (OESA) that gauges supplier sentiment and outlook.

 

Uncertainty weighed on the minds of original equipment suppliers (OES) in Q4 2019 as the General Motors strike coupled with continued trade tensions and poor sales saw the Automotive Supplier Barometer Index (SBI), falling 13 points below a neutral reading of 50 to 37 during the quarter.

 

The OESA supplier Barometer by RSM US LLP focuses on HR and talent and indicated a few key results. Trade policy was the greatest risk according to automotive suppliers given the volumes and weak US economy. Suppliers also saw significant staffing issues throughout North America, with firms compensating by focusing on attracting and retaining talent through initiatives like providing flexible schedules and cross functional jobs. 

 

The current supplier outlook between the third and fourth quarters of 2019 dropped significantly, by more than 50pc during Q3 and 10pc by Q4.

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