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8 Key opportunities auto suppliers need to embrace


Diminishing growth is forcing automotive suppliers to reexamine their business models. Shifts in technology, pressure from rising costs and demands for increases in shareholder value have suppliers seeking new opportunities. In such a volatile environment, there are eight fundamental areas where suppliers can—and should—focus their attention to create a successful future.

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8 Key Opportunities auto suppliers need to embrace RSM US LLP is a limited liability partnership and the U.S. member firm of RSM International, a global network of independent audit, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. RSM, the RSM logo and the power of being understood are registered trademarks of RSM International Association. © 2019 RSM US LLP. All Rights Reserved.auto suppliers need to embraceKEY OPPORTUNITIES812345678Strategy and portfolioSuppliers need to define their end-game strategy and rethink their product portfolio in order to capture future growth opportunities.Products and technologyOnce the target product portfolio is selected, suppliers must reassess their long-term product/program and technology road maps.Operating cost baseA lower operating cost base is necessary to cope with increasing competitive pressure, especially for decreasing segments. Capital and financingAdditional financing needs for new growth areas and diverging business strategies demand a review of the current financing plan.Success in new growth areas will require a new set of competencies and capabilities.Organization and governanceOrganizational structures should accommodate the requirements of new business models. PartnershipsTraditional suppliers will have to be more open to partnerships in order to effectively close competency gaps and enable innovation.Cultural mindsetSuppliers should make sure their organizational culture reflects openness to innovation and new product development processes.



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Lawrence Keyler
Global Automotive Sector Leader



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