TMASC 2.0 Launch

We recently completed a market update on the Texas-Mexico Automotive SuperCluster (TMASC) Region.  The new data will be launched on Tuesday, May 8^th, 2012.  On that day, we have a few events planned as part of the launch, including:

• Bexar County Commissioners Court presentation and stakeholder introductions,
• Press conference, and
• Stakeholder luncheon with a TMASC discussion.

There are several significant findings in the updated TMASC report.  As a result of these findings, we see FDI opportunities in the TMASC Region related to:

• Assembly,
• Telematics,
• Smart city technologies,
• Corporate functions for Western Hemisphere, and
• Commercial truck innovation.

In 2012, we continue to reflect a collaborative approach in achieving our TMASC goals, and as such, key regional partners will be in attendance at the launch event.

We appreciate your continued support and ask you to stay tuned for the press release and related updates.  If possible, please tune into Commissioners Court for live feed of the TMASC market update launch here: http://www.bexar.org/commct/comcourt.htm.  You can also follow us on twitter at www.twitter.com/tmasc.

Tomorrow, we’re heading to Atlanta for the sold-out 2012 Consultants Forum – Automotive event.

Automotive sales and related production has been revving back, and production close to market is as important as ever. Recent industry news indicates how global auto manufacturers are strategically assessing their supply chain capacity and considering how to best position their operations, in order to meet growing North American and Latin American market demand.

We look forward to seeing fellow auto industry enthusiasts from around the country who will be discussing what’s on the minds of OEMs and the rest of the automotive manufacturing supply chain. Give us a shout-out over at @TMASC if you’ll be there too. This Consultants Forum couldn’t be more timely and promises to be great!

Recent plant capacity utilization signals future expansion

Last Friday, CNBC automotive correspondent Phil LeBeau reported that Detroit automakers are trying to keep up with recent increased sales by operating their plants at levels approaching full capacity — 2012 sales are projected to be approximately 37% greater than three years ago, and January 2012 capacity utilization was more than 50% higher than in 2009.  As a result, LeBeau writes, “the conversation is starting in terms of when to add auto plants.” Based upon his conversations with Detroit auto executives, LeBeau believes that new plant expansion would not be this year “and probably not until 2014.” If Detroit automakers do expand in the next few years, LeBeau writes that it would happen guided by their desire to expand “prudently” and to limit their level of capital investment.

Some likely scenarios

LeBeau envisions that Detroit automakers looking to add capacity would first attempt to grow in place “by adding assembly lines at existing plants,” if their existing footprint and location would permit. Or, they might try “adding capacity in Mexico where expansion could happen a little easier.”

He concludes:

“Finally, if the Big 3 talk of building an all new plant, it will be in the Midwest corridor (Michigan/Ohio down through Alabama/Mississippi) where they have consolidated operations in the last two years.

“By the way, it’s not just the Big 3 looking into adding more plants here in the U.S. The foreign automakers are already in expansion mode. Toyota opened a new plant in Mississippi. BMW and Mercedes are both adding an assembly line to their facilities in the U.S.  And don’t forget Volkswagen’s new plant in Tennessee.”

Why TMASC will host some of the domestic automakers’ future auto capacity expansion

While LeBeau’s article and related broadcast segments focused primarily on Detroit automakers, notably missing was recognition of the “Big 3” plant in Arlington, Texas (GM), let alone the “foreign domestic” plant in San Antonio (Toyota). A broader view of future auto capacity expansion options opens up when one looks at the Texas-Mexico Automotive SuperCluster (TMASC) region as a whole, and Texas in particular.

Such an expansion proposition begins with two globally competitive OEM plants which have added new capacity over the last two years: in 2010, Toyota added the Tacoma line to its TMMTX plant in San Antonio; this year, GM announced plans to add a metal stamping facility to its plant in Arlington. Both of these plants are supported by strong supply chains that leverage nearby Mexican production, by excellent logistics and development assets, as well as by high-performing, skilled area workforces. Moreover, various communities in Texas besides San Antonio and DFW are positioned to offer similar production advantages to domestic automakers who locate future plants there.  Results from a new TIP Strategies, Inc. report (to be released in Q2) further illustrate substantial manufacturing assets and activity in the region:

• 27 plant facilities (automotive vehicle or parts, heavy equipment  or parts, commercial and military vehicle, and specialty vehicles)
• Over 230 Tier 1 suppliers
• 17 million workers
• 15 research centers

To learn more about the extensive opportunity available in the TMASC region, visit www.txmxautomotive.com.