Automotive tool-and-die companies, many of which have struggled financially in the past three years, should soon be in a stronger position as automakers launch more than 130 new electric or hybrid models as well as redesigns for internal combustion mainstays, according to a new study.
Automakers plan to significantly increase spending on tooling in North America ahead of those vehicle arrivals, the study by Harbour Results Inc. and AutoForecast Solutions says.
The study projects automakers' base tool spending in the region is set to hit $7.1 billion in 2025, up from $5 billion last year.
That's because the boom in new models is coming.
Those 130 vehicles are expected to launch between now and 2030, with plans to convert or build 56 plants to assemble them in North America, according to the study. All of those projects require new tools and dies and production machinery.