Many parts makers are biting the bullet and beginning to make parts for other industries. Some are focusing on healthcare, others are getting into clean energy. Most are finding it slow and expensive to retool and get traction outside their old auto business. A combination of tight credit (making retooling slow and expensive or even out of reach), the poor economy, and the regular risks of opening new product lines have made it difficult for many to claim success yet.
One example is family-owned Dowding Industries. Dowding borrowed $40 million to retool and start making parts for wind turbines. The wind turbin market hasn’t materialized yet so they are making parts for precision cutting machines. While they are keeping the doors open, the loan amount is a heavy burdin on the company.
We applaude companies like Dowding for stepping out and innovating to survive. Hopefully they and others like them will find success outside the auto parts business.