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Automotive
The automotive industry has been hard hit by the recent economic crunch. The original equipment manufacturers (OEM) and the tier one and two automotive parts suppliers have all experienced lost of revenue and human capital. Fortune 500 companies like General Motors have gone into bankruptcy even after the government bail outs. GM is now undergoing restructuring as a much smaller company than it used to be. At one point this automobile company was the biggest institution and employer in the world after government.
In the economic situation like the one in the U.S. where working people and those without jobs are all managing closely how to keep most of their money,other resources and their jobs. The loss of human capital can directly be correlated to the outsourcing of jobs to low cost countries(LCC). Loss of revenue however can be attributed to the lack of purchasing power by the same people who are now unemployed and can not find replacement jobs. Sales of new automobiles are down and it's no where close to being recovered.
The application of project management and value analyisis strategies can lead to improved company financial bottomline and retention of employees. Automotive parts sales should improve as more and more people are holding on to their cars longer than they would normally do. It can be cost effective to have your automobile repaired as opposed to trading it in for a new one only to have automobile monthly notes. It would not be so bad if one knew that his job is secured. Not these days.
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