Southern Automaking: sponsored information - Brief Article

A supportive business environment, motivated workers, aggressive job training programs and financial incentives have prompted automakers from around the world to establish factories south of the Mason-Dixon Line. The plants--which are operated by major domestic and international automakers -- produce more than one third of all U.S.-made cars and light trucks and employ one fifth of all workers in the industry.

According to a 2001 report prepared for the Alliance of Automobile Manufacturers, the South Atlantic and East South Central regions of the United States are second only to the East North Central region -- home of the Motor City-when it comes to auto-related employment and compensation. That includes the many suppliers -- and suppliers of suppliers -- who've migrated to the region, as well as other types of spin-off businesses.

Automotive Industries' Southern Automaking supplement is a salute to the South's growth as an auto-making region and to the states, manufacturers and suppliers who've spurred this economic development.

Plants and production

Alabama

Honda

Location: Lincoln, Ala.

Year built: 2001

Models produced: Odyssey minivan

Annual production: 150,000 vehicles

Square footage: 1.7 million

Number of employees: 2,300 at full production

Hyundai

Location: Hope Hull, Ala.

Year built: 2005

Models produced: Sport sedans, SUVs, Engines

Annual production: Projected at 800,000 vehicles

Square footage: Undetermined

Number of employees: Will employ 2,000

Mercedes

Location: Vance, Ala.

Year built: 1997

Models produced: M-class SUV

Annual production: 80,000+

Square footage: 1 million+

Number of employees: 1,942

Georgia

Ford

Location: Hapeville (Atlanta), Ga.

Year built: 1947

Models produced: Ford Taurus and Mercury Sable

Annual production: 215,100 in 2001

Square footage: 2.5 million

Number of employees: 2,328

General Motors

Location: Doraville, Ga.

Year built: 1947

Models produced: Chevrolet Venture, Pontiac Montana, Oldsmobile Silhouette

Annual production: 226,857 in 2001

Square footage: 3.5 million

Number of employees: 3,455

Kentucky

Ford

Location: Louisville, Ky.

Year built: 1955

Models produced: Ford Explorer and Sport Trac; Mercury Mountaineer

Annual production: 282,042 in 2001

Square footage: 3.2 million

Number of employees: 3,844

General Motors

Location: Bowling Green, Ky.

Year built: 1981

Models produced: Chevrolet Corvette

Annual production: 35,535 in 2001

Square footage: 1 million

Number of employees: 801

Toyota

Location: Georgetown, Ky.

Year built: 1988

Models produced: Camry sedan, Avalon sedan, Sienna minivan, Solara beginning in fall 2003

Annual production: 446,082 in 2001

Square footage: 7.5 million

Number of employees: 7,000

Louisiana

General Motors

Location: Shreveport, La.

Year built: 1978; additional facility 4th Qtr. 2002

Models produced: Chevrolet S10 pickup and GMC Sonoma, Chevy Colorado

Annual production: 154,048 in 2001

Square footage: 2.1 million; 1.5 million at new facility

Number of employees: 2,172

Mississippi

Nissan

Location: Canton, Miss.

Year built: Spring 2003

Models produced: Full-sized pickups and SUVs for Nissan and Infiniti lines, Nissan Quest and Nissan Altima in 2004

Annual production: 400,000

Square footage: 3.5 million

Number of employees: 1,300

South Carolina

BMW

Location: Spartanburg, S.C.

Year built: 1993

Models produced: Roadsters, coupes and X5 Sports Activity Vehicles

Annual production: 60,324 2002 YTD

Square footage: 2.3 million

Number of employees: 4,300+

Tennessee

Nissan

Location: Smyrna, Tenn.

Year built: 1983

Models produced: Altima, Xterra and Frontier

Annual production: 500,000

Square footage: 5.2 million

Number of employees: 5,800

Saturn

Location: Spring Hill, Tenn.

Year built: 1986

Models produced: S-Series sedans and coupes, Vue

Annual production: 175,193

Square footage: 4.6 million

Number of employees: 6,516

Texas

General Motors

Location: Arlington, Texas

Year Built: 1954

Models produced: Chevy Tahoe, GMC Yukon, Cadillac Escalade

Annual production: 203,153 in 2001

Square footage: 3 million

Number of employees: 2,645

Virginia

Ford

Location: Norfolk Va.

Year built: 1925

Models produced: Ford F-150 light pickup trucks

Annual production: 239,040 in 2000

Square footage: 2.2 million

Number of employees: 2,320 in 2000

Understanding ergonomics and anti-fatigue matting: A solution for standing workers

Long-term standing negatively affects workers' productivity and health. Standing eight hours every day for years takes its toll on the body, causing varicose-veins, low back pain, leg pain and fallen arches. To fully appreciate standing's impact on workers, we need to understand the laws of ergonomics -- specifically the importance of body mechanics to maintaining employee health.

The ultimate goal of ergonomic design is optimal performance, which can be realized when we create comfortable, healthy and safe work environments. Anti-fatigue matting is an important and necessary aspect of safe, comfortable, and healthy work environments. These ergonomic products can play a huge part in injury prevention and fatigue reduction.

Anti-fatigue mats work by encouraging subtle movement of leg and calf muscles. As the muscles contract and relax, they pump blood back to the heart and eliminate blood pooling in the lower extremities. At Tennessee Mat Company, we call this "dynamic ergonomics" -- the study of ensuring standing worker comfort by means of muscle activity.

When choosing anti-fatigue mats, there are two important issues to consider: comfort and specific application. Some environments require chemical or oil resistance and others require resistance to extreme heat or welding sparks. Still others require a high coefficient of friction.

Below are some of the most popular anti-fatigue mats used in the automotive industry:

* UltraSoft Diamond-Plate

* Diamond-Plate SpongeCote

* Industrial WorkSafe

* Modular Diamond-Plate

* Industrial GritWorks!

* Modular GritWorks!

* WeldSafe

At Tennessee Mat Company, we wrote the book on anti-fatigue matting. For over 50 years we've been working to provide a safer and healthier work environment for you and your employees. Callus at 1(800)264-3030 for a free onsite assessment.

Mid-South Industries offers the southern automotive industry total metal stamping and assembly solutions

Mid-South Industries is headquartered among the largest concentration of tool and die specialty machine shops in Alabama. For nearly 30 years, MSI has provided nothing short of total customer support and service to the automotive industry. MSI offers First Tier, Second Tier, Japanese and domestic suppliers, Yamaha, GYC, Yotec, Douglas Auto Tech, Dynamec and others vertical integration through its many subsidiaries, affiliations and strategic alliances.

With design services and support, tool and dies, metal stampings (60-ton to 600-ton),welding, plating, powder coating and sub-assemblies, the MSI team gives regional automotive plants local metal stamping solutions. Other services include plastic injection molding (30-ton to 1000-ton), electronics, electro-mechanical assemblies, test and complete assemblies.

The MSI companies are quality driven facilities with continuous improvement programs, program management teams and QS 9000 and ISO 9001-02 certification.

At MSI, striving for excellence and total customer satisfaction is a way of life. At its annual vendor conference, Yamaha Motor Manufacturing Corporation of America recently recognized MSI subsidiary Stamped Products of Gadsden, Ala., for outstanding performance in on-time delivery of metal stampings.

CRH Salutes Alabama

A few years ago, a group of Alabama citizens -- businessmen, state and local officials -- had a vision to create a new industrial base for Alabama that would improve the statewide standard of living and educational level. An economic development board was created, research was done, and when a plan was in place, the real work began. With absolute determination and a level of professionalism that few would have believed existed, the plan was executed. Daimler-Chrysler was the first to decide that Alabama had the right stuff. Soon a supply base followed. The State of Alabama provided training incentives to help these companies prosper and grow.

Since then, Alabama has attracted manufacturing facilities for other automotive companies. Honda, Toyota, and most recently Hyundai, have all decided to make Alabama their home. Soon, their supply bases will be here too.

The result will be a growing economy, increased job opportunities, a healthy tax base and an enhanced level of educational and professional training for the entire state. Everyone wins.

CRH salutes these men and women of vision, many of whom will have retired before economic harvest bears its fruits. Alabama will be a better place for their efforts. We at CRH have experienced first hand their dedication and absolute professionalism, and they continue to impress us every day.

This dedicated group of individuals has helped dozens of companies, and they have shown wisdom in the implementation of their plan. Due to these efforts, the State of Alabama has emerged as a new hub for automotive production and is now developing many of the related industries necessary to support these businesses.

CRH wants to thank the State of Alabama and all of the fine individuals who have helped us along the way to becoming a real part of the North American automotive industry.

AFS award illustrates Citation's role in new era of supplier relationships

The American Foundry Society recently named Citation Corporation "Best in Class" for its Lower Control Arm program for DaimlerChrysler's Dodge Ram 2500/3500 suspension. The austempered ductile iron component offers lower product weight, greater strength and substantial tooling cost savings over the life of the program compared to the current welded part.

"When we see an opportunity for improvement, we make suggestions," says Dan Tonge, account manager. "And we have the resources and technical expertise to back them up." Tonge is talking about Citation's new product development center in Novi, Mich., a resource for innovative product design, development and manufacturing process simulation.

"We wanted to incorporate Citation's product development tools and abilities with our testing capabilities and bring all of that one step closer to our customers," says Vince Genise, vice president, product engineering and development. "In today's market, engineered components are becoming the norm. We leverage our expertise with metals and manufacturing processes to develop superior products."

The Lower Control Arm design success illustrates the emerging role of product design partnerships among suppliers and OEMs. "Five years ago, a supplier simply manufactured a product from a blueprint, today the same supplier helps design and develop the product," explains sense.

And that change makes sense.

"I truly believe that the best products are created when an OEM works with a supplier who understands their own raw materials and engineering processes," continues Genise. "We control our raw materials and know our processes. We understand the design requirements, product validation requirements and the manufacturing processes that best utilize the materials to best meet our customers' product needs."

When asked why he thinks DaimlerChrysler submitted, the Citation design, Tonge's answer is simple -- it's a robust design that works. Building on that description, Xiao-Ming Li, Ph.D., manager, product development explains, "We're known for our product development capabilities, our manufacturing expertise and the way we work with customers. We bring value to the product."

What Makes Lean Different?

Is there a difference between companies that have adopted lean manufacturing and those that haven't? In our experience working with companies to implement lean manufacturing principles and systems, the answer is yes! A lean adopter has an invigorated workforce and excitement in the ranks because everyone is actively involved in improving what they do. Lean adopters have customers and suppliers who work with them to eliminate waste from the total process, thus developing trust and cooperation throughout the supply chain. Management can assess at a glance the state of the operation. Managers and employees know what measurements are important to ensure the operation is running successfully.

A recent study of the automotive industry in Alabama suggests that adopting lean changes the performance measures to which managers pay attention. The study, conducted by researchers at the University of Alabama in Huntsville, measured lean commitment by asking how many, and how often, lean tools were employed at the plant. Performance measures were divided into four families: customer focus, efficiency, quality and employee involvement. These are some of the same criteria Industry Week uses in evaluating candidates for its "Best Plants" designation. Differences were found between plants where the managers had embraced lean and those that had no, or very little, exposure to lean tools. Lean adopters tracked all customer-focus, efficiency and quality metrics more frequently than non-adopters.

What is the source of this difference? Customer focus. Plants ingrained in lean manufacturing focus on how to improve their operations by eliminating waste to better serve their customers. Bottom line, success is sustainable when customers are well served, employees are fully involved and continuous improvement is away of life.

Gregory A. Harris, P.E.

Director, Alabama Technology Network

University of Alabama in Huntsville

harrisg@email.uah.edu

(256) 824-6060

General Motors expands Shreveport, Louisiana, presence

New$800 million, 1.5 million square foot facility will produce the Chevy Colorado

Residents in Shreveport, Louisiana, may seem a little anxious these days, but they have good reason to be. They're eagerly awaiting the completion of a new $800 million dollar, 1.5 million square foot General Motors plant that Site Selection Magazine called one of the five largest construction projects in the United States for 2001.

Announced in December of 1999, the plant is being built on land adjacent to an existing GM facility that is 2.1 million square feet. The plant will house a new body shop and general assembly area and include two of the automotive industry's proven best practices: an on-site stamping facility and a just-in-time delivery system. The stamping facility will feature presses that mold sheet metal into items such as hoods and fenders. The delivery system frees GM from having to store excess inventory because suppliers deliver parts on an as-needed basis. This requires suppliers to be located within at least an hour of the plant, which is good news for the local economy.

Approximately 800 jobs are expected to be created by the influx of suppliers. Eight Tier One suppliers have already made verbal commitments to locate in the area, with more expected to follow in the next few years. The Greater Shreveport Chamber of Commerce and the City of Shreveport are hoping to bring in at least 20, but competition is fierce.

Southern cities such as Canton, Mississippi, and Lincoln, Alabama, have put out the welcome mat to companies like Nissan and Honda. And the East Texas cities of Marshall, Longview and Kilgore are also in the hunt. But Louisiana is fighting back. David Berzina, the Chamber's senior vice president for economic development, said he "strongly believes GM is positioned in a strategic location in what is called automotive alley." The state has increased its tax credit for automakers to $5,000 per-job-created and added a ten-year 100 percent tax abatement in hopes of attracting employers. According to a study commissioned by the Shreveport Chamber, tax savings for a company building a plant in the city and employing more than 100 people would be nearly $2.3 million dollars over 10 years when compared to neighboring Texas cities.

Annual reports within the last few years reveal GM's efforts to streamline the production process and replace aging structures by building new assembly plants capable of operating around the clock and flexible enough to be used for producing more than one type of vehicle. The new Shreveport plant will be just such a site.

Although there are still some unknowns associated with the new facility, such as whether or not it will need more than the current 2,500 employees, the one thing that is known is that it will be home to the Chevy Colorado. The new midsize, truck will serve as the replacement for the Chevy S-10 and GMC Sonoma which have the been produced at the existing GM plant in Shreveport for the past 20 years. Not a lot is known about the Colorado except that it will offer more room and horsepower on a larger platform.

Construction of the new facility is scheduled to be completed by year's end. The skeleton has taken shape as the iron girders which serve as its bones have been hoisted into place. The concrete floor is being put down at a thickness of approximately 4 feet so that it will be able to bear the weight of the plant's machinery. It's that machinery which will soon be brought to life, and with it will rest the hopes and dreams of all those employees who will depend upon it for their livelihoods.

So, you'll forgive them if they seem a little anxious. They have reason to be. The advent of just-in-time production and the 15 or more suppliers moving into the area in the next year will certainly transform Shreveport into an automotive cluster on Interstate 20.

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