Rebounding Quickly
that survived the lean times, like North American market leader Supe- rior Industries, Van Nuys, Calif., and Enkei America Inc., Columbus, Ind., are reaping the rewards. “Te volumes have retuned, and they
are coming on fast,” said Jobe Crick, vice president of North American sales for Enkei, the largest supplier of cast aluminum automotive wheels globally. “We are seeing a return to about 120% of pre-tsunami take rates…[and] we were full prior to the tsunami.” In addition to the natural consoli- dation of the industry, the survival of
cast wheel suppliers has been fueled largely by their ability to stay ahead of consumers’ needs via technology. “With respect to wheels, the advan-
tages of forging have to do with the mechanical properties and microstruc- ture you can achieve,” said Ted Schorn, Enkei America’s vice president, stra- tegic planning and development. “But the limitation of forging is the shape.”
Looking Around the Market According to Crick, wheel orders
are, if anything, rolling along too quickly these days.
“Can we keep up? No,” he said.
“But are we going to make it? Yes.” During the early 2011 stall in orders
from Enkei America’s Japanese customer base, the company shut down equipment and built inventory while waiting for work to return. Te return came quickly, and it has been made all the more rapid by the fact that the global automotive supply base consolidated at a record pace in 2010, according to the U.S. Depart- ment of Commerce. “We are balls to the wall, running
at 90% capacity,” said Superior Indus- tries President Steven Borick. Like Superior, Enkei America also has been stretched thin. “We do have the capacity to meet [demands], but it is a challenge,” Crick said. “We are restarting equipment as fast as we can. We added two addi- tional molding lines in August, and four [in September]. We are running seven days a week.” While Enkei America’s parent
company is the largest supplier of cast aluminum automotive wheels globally, it is a relatively small player in the North American market. Superior Industries has expanded its cast aluminum segment in recent years and is still growing, with some industry analysts pegging their revenue increases at about 50% from 2009-2010. However, Borick notes the industry has growth problems. “We have shut down three U.S.
plants, laid a lot of people off and shut down capacity that will never come back,” he said. “Tere are significant price concerns. It is difficult in the U.S. to create any margin. [Custom- ers are] demanding a piece of jewelry for a commodity price. We are happy with the rebound, but what we are not happy with is the margins.” According to Dick Lilley, Lilley Associates Inc., Birmingham, Mich., a company that publishes a comprehen- sive overview of the North American wheel market biannually, the total consumption of wheels in 2007, prior to the market crash, was 61.2 million.
About 70% of the automotive wheels produced are aluminum die or permanent mold castings.
November 2011 MODERN CASTING | 31
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