Footprints around the globe: North American manufacturers adapt to a growing global marketplace and discuss who's the next China

The planet's population continues to increase, on the other hand the world is steadily becoming a smaller place, at least in the world of business.

Alliances are formed between partners thousands of miles apart, trade barriers between countries dematerialize practically by dint of the day and there's a useful chance a number of U executives at this real moment are keeping close tabs upon such remote locations as Eastern Europe and Asia.

The directions of business are ever changing, and in this global landscape, the lock opener now is for companies to adapt to the fresh paradigm.

Many companies cite the cliche "think globally, act locally" to describe basic business strategy, on the other hand to even use the phrase "global" connotes a bit of a cliche.

Globalization is a fact of doing business, no matter who's involved.

We not long ago spoke with some leading aftermarket suppliers to gain their take on operating in a global marketplace and what that means for the industry.

Like other business sectors, it's more than likely auto parts manufacturing will decrease in North America, a fact that is not necessarily a negative for the industry if U companies form the particular alliances and get their business plans in order.

Many suppliers, who have interests in the two the OE market and the aftermarket, are simply following the automakers.

And while a number of companies are fanning on the outside to overseas locales, there are others who plan to increase their operations stateside.

The whole world is upon the phone

The global mindset breeded by today's companies is probably best illustrated by dint of a typical Delphi conference call, says Frank Ordonez, president of Delphi fruits & Service Solutions and vice president of Delphi Corporation.

"When I have a staff meeting, I have the whole world upon the phone," says Ordonez, who adds this makes for a certain quantity of early mornings (or late nights) for certain employees

Delphi is to the full entrenched in global operations, with 164 manufacturing sites and 185000 employee around the world, including North America, Asia-Pacific, Europe and the Middle East.

ACDelco, another prominent global player, is in nearly each continent, says Michael Durkin, director of business exhibition specialized distribution, SPO International.

"Every region has independent aftermarket representation in each country."

The company has launched more than 600 ACDelco Service Center in more than 20 countries since 1994 with more than 200 being initiated above the past two years.

A priority through every part of the company's globalization efforts is to maintain consistent messages and branding, says Durkin.

A novel initiative includes a series of training module that local marketing managers can take to WD in southern America, Mexico and Asia-Pacific regions. Including brand establishment and consumer awareness programs, the module make use of similar materials as catalogs, brochures, e-business tools and point-of-sale materials.

"We ne to have visibility in all warehouses around the world," says Durkin.

SKF which makes bearings and seals, is perhaps ahead of the global bend The company planted its feet into the market as a global neighborhood soon after its 1907 origins. Within five years of the company's founding, it had a place to stand on in such countries as Russia, Argentina, Brazil, China and the United States, says Rutger Barrdahl, vice president of SKF's Automotive Division.

The manufacturer now has a nearness in 130 countries.

Terry McCormack, president and CEO of Affinia, says his company necessityed to adjust their global strategy as research showed the value of "made in America" had diminished among professional repair technicians, provided that the technology and quality were still paramount in the product

"When that became prevalent, when that became a reality for us, that changed all of the sourcing controls from this point forward," he says. "As lengthy as we provide a quality part with OE fit, form and function, technicians are les influenced through country of origin."

A diminishing U presence?

notwithstanding that the role of North America in the world of manufacturing is predicted to decrease, it will by means of no means go away. single thing the U.S. manufacturing industry still has in its favor is a sophisticated cutting side in research and development.

Ordonez foresees technology-related parts still being made in more sophisticated countries of the like kind as the United States. "I think technology returnss that are still difficult to manufacture are going to remain in the lay opened countries."

Other parts will simply come [i]or[/i] go after [i]or[/i] behind the OEs, as these companies point on the outside "A lot of the interior parts and a fate of the heavy metal parts are typically (produced) nearest to the assembly plants," says Ordonez, who adds that electronic parts have basically become commodity items. "There's no manufacturing of electronics in the U that has survived in the drawn out run."

He says Delphi is expanding in other countries, especially China.