Order your copy of the 2013 IRN Pricing Survey!
IRN has been surveying the automotive supply base since 1997 to obtain data on the dynamics of price reduction requests and other issues relating to the commercial environment for suppliers. We were pleasantly surprised to get confirmation from this year’s survey results that the supply base continues to get stronger. There is evidence that suppliers are learning to better manage the complex interaction with their customers, but there are some storm clouds on the horizon.
The survey covers many topics that yield a picture of how suppliers are coping with the increasing production volumes, requirements of new programs, risks of raw material costs, and industry globalization. As the health of the OEMs has improved, “they are emboldened by their current success,” in the words of one respondent. Competitors are also becoming more aggressive, setting up the potential for the dynamic we saw previously of a ‘race to the bottom’ if companies are not careful to make good business decisions.
This survey has become an invaluable tool for suppliers to benchmark financial and commercial performance, and for industry observers to better understand the dynamics of the automotive industry.
Order Now! The 2013 pricing survey report is available in hard copy form for US$299 or US$499 for an enterprise-wide PDF (unlimited use within one organization). 2013 Pricing Survey Order Form.pdf .
Results of IRN's Material Pricing Survey Show Suppliers Enjoying a Period of Stability
Concern about material price escalation remains low for most suppliers responding to the 2013 Material Pricing and Cost Recovery Survey. Whereas the 2012 survey indicated optimism about prices actually going down, suppliers this year are anticipating that the next twelve months will see little change in commodity prices. The specifics vary by material, however, and we all know from past experience that the factors that drive fluctuation in commodity pricing can change quickly. Now is the time when suppliers should be negotiating with their customers on how to address future material price increases, if they have not done so already. The 2013 report provides information on suppliers’ recent experience with availability of material, what proportion of their contracts include cost recovery provisions, the methods they are using to address costs with customers, and more.
Order your copy of the 2013 IRN Material Pricing and Cost Recovery Survey Now!
How is your company dealing with changes in raw material prices? How effectively have you addressed the risks of material price variation? What are other suppliers doing? Click on the link for an order form and get your copy of this important annual study. 2013 Material Survey Report Order Form.pdf
AUTOMOTIVE INTELLIGENCE: SNAPSHOTS