New launches will drive tooling demand, with 47 launches planned for 2023, 64 for 2024, 48 for 2025 and 63 for 2026. PHOTO courtesy UL Solutions
There is optimism for North American automotive tooling, with OEMs continuing to spend on new programs throughout the rest of the decade, according to the Precision Metalforming Association (PMA).
Despite the automotive labor strife experienced lately, PMA reported in its MetalForming magazine that recent forecasts for tooling look good. MetalForming attended the Automotive Tooling Outlook, presented by Harbour Results Inc. at a MEMA conference and also a Harbour Results webcast.
“In a word, Laurie Harbour, president and CEO of Harbour Results, is “bullish” on tool spend,” MetalForming reported.
The current Harbour Results amended forecast sees North American die and mold spend for automotive totaling $5.1 billion in 2023, $7.4 billion in 2024, $6.2 billion in 2025 and $6.3 billion in 2026. According to Harbour, new launches will drive tooling demand, with 47 launches planned for 2023, 64 for 2024, 48 for 2025 and 63 for 2026, MetalForming reports.
“OEMs will conduct product development next year for vehicles that come out in 2025-2027, when the economy should return to a level of robustness,” Harbour says.
Also, battery electric vehicles (BEVs) will make an increasing impact, Harbour reports, though she envisions some program delays.