Maximising Fastener Potential in the Automotive Sector
According to a recent report into the automotive industry by leading management consultants Strategy & Co*, despite the fact the automotive sector globally has been enjoying a period of relatively strong growth and profitability for the past few years, OEMs face some serious challenges ahead. Due to the waning of product differentiation and a general increase in vehicle quality throughout the sector, customers are becoming less loyal to a specific brand and expect more high-end features to be standard. Added to the need to adhere to an ever increasing number of regulatory requirements, it is becoming essential for automotive OEMs to find a way to reduce costs. For TR Fastenings, a leading global manufacturer and distributor of automotive components, the automotive sector makes up 31% of its revenue and is crucial to its growth plan. Here, Chris Black, Director of Global Automotive Business Development at TR Fastenings explains, how best to react strategically to these changes in order to build market share and profitability.