While the economy overall is strong and vehicle sales are still
robust, there are risks in the industry that may affect the supply
chain and cause disruptions throughout the year. Chief among these
are the ongoing concerns regarding tariffs on products such as
steel and aluminum, along with the on-again, off-again trade
disputes with China.
In addition to the upheaval in global markets, the shift away
from passenger cars and toward trucks and sport utility vehicles
has caused automakers to realign their product offerings and even
end the production of several car models. For suppliers, who have
been dependent on contracts to provide parts for these vehicles,
this realignment could be problematic. In addition, higher interest
rates may complicate financing for businesses that need additional
capital to address these changed circumstances.
