UAW strike starting to impact local suppliers

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It’s now the fifth day of the UAW strike at General Motors factories, and economic development officials say local employers are starting to feel its effect. Dan Casey, CEO of the Economic Development Alliance of St. Clair County tells WPHM when factories shut down it can cause disruptions up the supply chain. He says that’s because many local automotive suppliers deliver parts just-in-time, meaning they are taken straight to the assembly plant with little to no warehousing capability. “As far as the rest of the supply chain, it depends on how long the strike goes,” said Casey. “So in our county we will have a few companies that will be impacted immediately, hopefully short term.” Casey says if the strike does persist, it could result in local suppliers going idle and the potential for layoffs. He adds many St. Clair County area suppliers are diversified enough in their product lines to continue production through the strike. Manufacturers that were strictly automotive years ago are now supplying for the defense and aviation industries, making them more resilient to labor disruptions and market conditions.

 

September 18 Dan Casey