SUPPLIER EYE

Since 2010 this industry has enjoyed an historic rise in both volume and profitability. All participants benefited from an expanding market-more overall volume, vehicle content, technology (driven both by regulations and consumer desire)-as well as a relatively stable global trading field.

The strong performances have started to buffet headwinds. Average EBITDA profitability for mid-market Tier 1 and 2 suppliers crested at more than 12% in 2016, but has been slipping by a point per year, according to analysis by Bank of America. There are lessons from the recent past which can direct decisions for the future.