MEMA Survey Shows Layoffs, Financial Impact from UAW Strike - Modern Distribution Management

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MEMA Survey Shows Layoffs, Financial Impact from UAW Strike

Nearly 30% of vehicle suppliers surveyed by MEMA have laid off some direct labor employees as a result of the UAW strike.

MEMA Original Equipment Suppliers, an association representing vehicle suppliers, surveyed its members on the impact of the United Auto Workers strike against Ford, General Motors and Stellantis, and found that nearly 30% of those vehicle suppliers surveyed have laid off some direct labor employees as a result of the strike.

The Sept. 29 survey also found that vehicle suppliers:

  • Additional suppliers will initiate layoffs with more than 60% expecting to begin layoffs by mid-October.
  • 70% of vehicle suppliers have concerns about their sub-suppliers’ ongoing financial viability.
  • More than 50% of idled suppliers indicated they need at least one week to return production to pre-strike levels.

MEMA is working with the White House administration to develop a plan to provide financial assistance for smaller suppliers, defined as less than $200 million in revenue. The output of these suppliers, often Tier 2 or lower, is “critical to the ongoing viability of the entire supply chain,” MEMA officials said in a news release.

Vehicle suppliers employ over 900,000 workers, contributing 2.5% of the U.S. Gross Domestic Product, MEMA officials said.

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