manufacturing: national and international trends in auto industry and manufacturing millie marshall,...
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Manufacturing: National and International
Trends in Auto Industry and Manufacturing
Millie Marshall, PresidentToyota Motor Manufacturing, West Virginia, Inc.
(TMMWV)WVEDC Annual Conference
September 23, 2014 1
Motor Manufacturing, West Virginia, Inc.
Agenda 1. Auto Industry
2. Toyota in North America
3. International Companies
4. Toyota West Virginia (TMMWV)
5. Women in Manufacturing
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Motor Manufacturing, West Virginia, Inc.
Motor Manufacturing, West Virginia, Inc.
Auto Industry in North America
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Auto Industry Update
• The U.S. economy is growing • Much of the economic activity over
the past several years has been led by auto manufacturing and sales.
• Good News – Analysts expect sales to top 16 million units in 2014
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North AmericaMotor Manufacturing, West Virginia, Inc.
A Look at 2014
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• GDP Growth Forecast +2.5 to 3% • Building Consumer Confidence
Home BuilderConfidence
8 Year High in Dec.
Unemployment
5 Year Low at 6.7%
Auto Loan Rates
At Historic Lows
North AmericaMotor Manufacturing, West Virginia, Inc.
2014 Sales Forecast
66
20132013
+4.5%+4.5%
20142014
Toyota Motor SalesToyota Motor Sales
20132013 20142014
INDUSTRYINDUSTRY
+2.6%+2.6%
Source: TMS DOD December 2013
North AmericaMotor Manufacturing, West Virginia, Inc.
Toyota in North America
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Motor Manufacturing, West Virginia, Inc.
Strong Momentum For Toyota
2014 Sales Forecast
2.3 million vehicles
Outperforming The Industry America’s Best-Selling Car
8 New/Updated Products#1 Retail Brand
Corolla
RAV4Tundra
60% Hybrid Market
11 Years in a Row11 Years in a Row
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Motor Manufacturing, West Virginia, Inc.
Localization Efforts
70% of vehicles made in N.A are sold in N.A.
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High Domestic Content (Avalon, Camry, Sienna & Tundra: 75%)
North AmericaMotor Manufacturing, West Virginia, Inc.
Toyota Philosophy is to: Build Where We Sell
Headquarters
ComponentVehicle Assembly
Engine Assembly
R&D
Future Headquarter
TMMWV
North America
Begin in 2017 (Sales, Financial
Services & Manufacturing)
Motor Manufacturing, West Virginia, Inc.
Employment
45,000
35,000
25,000
15,000
5,000
Total Investment
$25 $20
$15
$10
$5
2.0
1.5
1.0
0.5
Vehicle Production
$30
$25
$20
$15
$10
1.86 Million
40,759
$32 Billion
Local Purchasing
95 97 99 01 03 05 07 09 11 13
95 97 99 01 03 05 07 09 11 13
$25 Billion
95 97 99 01 03 05 07 09 11 13
95 97 99 01 03 05 07 09 11 13
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North AmericaMotor Manufacturing, West Virginia, Inc.
Looking Forward
Capacity Increases
TMMC TMMI TMMAL TMMWV
2014 2014 2014 2015
Lexus RX Highlander V6 Engine 6 Speed Auto Transmission
30,000 Increase
15,000 Increase
200,000 Increase
240,000 Increase
Lexus RX350
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Transmission
North AmericaMotor Manufacturing, West Virginia, Inc.
International Companies
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Motor Manufacturing, West Virginia, Inc.
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Motor Manufacturing, West Virginia, Inc.
Total of 21 Japanese Companies-11 came after Toyota’s establishment-7 are our suppliers
Total of 21 Japanese Companies-11 came after Toyota’s establishment-7 are our suppliers
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Motor Manufacturing, West Virginia, Inc.
What Factors Do International Companies Look For when Locating Facilities in the United States
Location to Supplier Base
Location to Customers
Access to Railways and Interstate Highways
Physical Site
Toyota North American Suppliers
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Motor Manufacturing, West Virginia, Inc.
What Factors Do International Companies Look For when Locating Facilities in the United States
Available Utilities
>Electricity
>Natural Gas
>Water Supply Availability
>Site Drainage (storm water infrastructure)
>Telecommunication
>Water Mains & Storm drains
>Wastewater Facilities
AEP was strategically involved in Toyota’s site selection in 1996
Several groups within AEP, from land management to engineering and their executive leadership, got involved to make our project a success.
This first project in Buffalo brought 300 jobs and a $400 Million investment to West Virginia
Currently $1.3 Billion investment and over 1,300 jobs
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Motor Manufacturing, West Virginia, Inc.
What Factors Do International Companies Look For when Locating Facilities in the United States
Environmental Conditions /Impact Fees
Local / State Officials who are good Collaborators If a business operator believes he has to jump through many
governmental hoops before the first shovelful of dirt is turned for an industrial facility, they may decide to go someplace with a friendlier atmosphere
Incentives** - Contrary to common belief – “Incentives”
are not high on Toyota’s List
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Motor Manufacturing, West Virginia, Inc.
What Factors Do International Companies Look For when Locating Facilities in the United States
Strong Workforce Necessary Job Skills
o Communicationo Problem Solvingo Problem Identificationo Teamwork
HOW CAN COMMUNITIES MARKET THEIR AREA TO
FOREIGN COMPANIES
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Motor Manufacturing, West Virginia, Inc.
Coordinate investments and align policies to support sustainable communities
Provide homes working families can afford, Reliable and economical transportation options, Shopping and other daily needs close to where people
live, Vibrant and healthy neighborhoods that attract young
people and businesses.Provide educational opportunities
Motor Manufacturing, West Virginia, Inc.
A.M.T. (Advanced Manufacturing Technician)
•A special Associate Degree program providing a multi-disciplinary, technical foundation coupled with continuous, real-world working experience with a leading manufacturer.•Students will attend classes for 2 full days per week, with 8 to 10 contact hours of instruction each day.•Work experience includes 24 hours of paid work per week at Toyota. •Total earnings while in the AMT program $40,000
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Motor Manufacturing, West Virginia, Inc.
Project Lead the Way Classes offer students the opportunity to apply their math and science
knowledge in a hands-on, practical setting. With Project Lead the Way programs, student are exploring
engineering at a younger age in hopes that they will chose engineering or other science fields as a career.
PLTW has worked in other States True Outcomes survey of PLTW seniors at the end of their senior year
found that: 93% intended to pursue a four-year degree or higher, 51% intended to pursue a graduate degree, and
Preparing Students for Future Careers
21Information From Wikipedia
70% intended to study engineering, technology, or computer 70% intended to study engineering, technology, or computer sciencescience
Toyota West Virginia(TMMWV)
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Motor Manufacturing, West Virginia, Inc.
TMMWV’sSuccess in West Virginia
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Motor Manufacturing, West Virginia, Inc.
In 1995, a team was identified to help determine the WV location for Toyota’s new 4 Cylinder Engine Plant which was a $400 million investment and added 300 new jobs
Site Selection Criteria Included: •200+ acres that could be developed for current and future needs•Availability of a strong workforce•Strong Rail and Interstate infrastructure•Close Proximity to Supplier Base •Support from State and Local Governments
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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Milestone
Project
Nov :SOP
Aug :SOP
May :SOP
July :SOP
Gear
2 GR
ZR cap. 411K/Year
cap. 228K/Year
5AT cap. 191K/Year
cap. 274K/Year
6AT
ZZ
MZ
Groundbreaking
Announcement of MZ
Announcement of AT
Announcement of Lexus
Announcement of Gear
Announcement of AT Expansion
6AT Capacity expansion
ceremony
Mid
SOP-Jul
10 millionth
456K
Dedication10 year Anniversary
15 yr AnniversaryAnnouncement
expansion6AT capacity
expansion6AT capacity
501K 741K
Milestone & Project
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TMMWV Success in WVMotor Manufacturing, West Virginia, Inc.
8 Expansions Total Investment $1.4B Celebrated 10 Million Units produced in
2013 first plant outside Japan to achieve
this accomplishment
Employ over 1,300 Team members Annual Payroll: $127.7 Million
(including benefits)
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TMMWV Success in WV
Motor Manufacturing, West Virginia, Inc.
15 Year Anniversary – Donations to Buffalo & Eleanor Fire Departments – TMMWV TMs
are volunteers
Philanthropy $6.6 Million contributed 2013: Team Members volunteered
over 11,000 hours at non-profits
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Japanese Culture Presentation at a local elementary school
Japanese Culture Presentation at a local elementary school
TMMWV Success in WV
Motor Manufacturing, West Virginia, Inc.
Arbor Day Volunteers @ Buffalo HighArbor Day Volunteers @ Buffalo High
American Red Cross Blood Drive = blood donated in May will help
more than 368 patients.
American Red Cross Blood Drive = blood donated in May will help
more than 368 patients.
Green Acres Regional Center TourGreen Acres Regional Center Tour
TMs participated in Special Olympics Golf Classic = over $825,000 raised
since 1998
TMs participated in Special Olympics Golf Classic = over $825,000 raised
since 1998
> Venza > Sienna> Avalon > Highlander> Camry > Rav4> Lexus RX350 > Corolla
TMMWV Facts
274 cyl Engine
Vol: 420K/year
V6 EngineVol: 233K/year
6 speed ATVol: 501K/year
Produce Powertrains for:
TMMWVMotor Manufacturing, West Virginia, Inc.
My Dream for TMMWV
1. Focus on continuing to bring new business to Buffalo2. Strengthen On-the-Job Development 3. Continue to be a strong community supporter – Great Place to Live and Work!
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NPLD Volunteer Event
"Expectation is for everyone to meet the company KPI’s in a Learning, Caring, and Inclusive environment”
TMMWVMotor Manufacturing, West Virginia, Inc.
Women in Manufacturing
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Motor Manufacturing, West Virginia, Inc.
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%
Women in ManufacturingMotor Manufacturing, West Virginia, Inc.
Women in Manufacturing in N.A.
• Manufacturing employs more than 12 million people in North America.
• 80% of manufacturers cannot find
skilled workers* (600K unfilled manufacturing jobs in U.S.)
*U.S.News & World Report’s STEM Solutions
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Women in ManufacturingMotor Manufacturing, West Virginia, Inc.
• Female grads account for
60% of U.S. bachelor‘s degree holders.
• Women make up 50% of the workforce
• Women make up only 25% of manufacturing workforce
*U.S.News & World Report’s STEM Solutions
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Women in ManufacturingMotor Manufacturing, West Virginia, Inc.
Women in Manufacturing in N.A.
Women in Manufacturing…What Can We Do?
• Must combat the industry’s “image” problem to attract more women
• Manufacturing has changed dramatically - today’s jobs are high tech, safe and clean
• Manufacturing jobs are innovative and rewarding with salaries and benefits above the national average
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Women in ManufacturingMotor Manufacturing, West Virginia, Inc.
• Encourage more girls to take STEM (Science, Technology, & Engineer Manufacturing)
• Must Change Culture – Inclusive Environment (All viewpoints are equal)
• Offer Child Care Option• Reward All TM’s on “Results” not
time spent in office• Hold Mgmt Accountable for an
Inclusive Environment. 34
Women in ManufacturingMotor Manufacturing, West Virginia, Inc.
Women in Manufacturing…. What Can We Do?
Questions?
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Motor Manufacturing, West Virginia, Inc.