Automotive Executives Favor North American Suppliers for 2025

Automotive Executives Strive for Stronger Local Partnerships

As the automotive industry evolves, nearly 85% of executives are making a notable shift towards leaning more on their North American suppliers in 2025. This is a critical strategy that aims to enhance their supply chains, ensuring resilience and adaptability in an ever-changing market environment.

Survey Highlights: Reshoring and Technological Innovations

According to the latest findings from Thomas, a leader in industrial product sourcing, 41% of surveyed automotive executives are planning to reshore at least part of their supply chain operations. This move emphasizes a growing commitment to local partnerships and reducing dependency on overseas supply chains.

Executives are not just looking at reshoring; they are keenly investing in various technologies. The survey indicates that spending is almost evenly split among hybrid (37%), electric (28%), and traditional combustion engine technologies (30%). Such investments underline a balanced approach towards innovation across different types of vehicle technology.

Driving Innovation: The Role of AI and Sustainable Practices

In the quest for innovation, developments in electric vehicle (EV) battery production and alternative fuel sources emerge as the top priorities. Notably, 41% of executives highlight advancements in EV battery production as crucial for the industry's future, while 37% are focused on exploring alternative fuel sources.

Moreover, nearly a third of suppliers are aiming to integrate artificial intelligence (AI) into their processes. This is seen as a pathway to accelerating product development and enhancing supply chain efficiencies, paving the way for a more technologically advanced automotive landscape.

Quotes from Industry Leaders

Peter Goguen, Chief Operating Officer of Thomas and its parent company, Xometry, remarked on this trend, saying, "Auto industry executives throughout the U.S. are relying on suppliers closer to home while also reshoring some of their operations to accelerate their go-to-market strategies. They’re actively investing in AI, 3D printing, and robotics to boost their adaptation to diverse vehicle technologies—ranging from electric and hybrid to traditional and autonomous vehicles."

Xometry: Empowering Manufacturers in the Automotive Sector

Xometry’s Thomas brand stands out as a key player in product sourcing and supplier selection. It offers industrial marketing solutions that equip companies in the automotive sector with the tools needed to achieve their onshoring objectives effectively.

Through the Thomasnet industrial sourcing platform, buyers and procurement professionals can connect with more than 500,000 manufacturers spanning 80,000 industrial categories across North America. This extensive network is critical for fostering local supplier relationships that enhance industry resilience.

The Xometry Advantage: Instant Quoting and Streamlined Processes

Xometry’s Instant Quoting Engine leverages extensive data analysis to provide accurate pricing and lead times for complex parts. This technology not only simplifies the procurement process but also supports manufacturers in navigating the modern challenges in supply chain management.

Looking Ahead: What This Means for the Automotive Industry

What does this mean for the future of the automotive industry? The combination of a focus on local suppliers and investment in innovative technologies sets a strong foundation for growth and sustainability. As automotive executives make these strategic shifts, they pave the way for an industry more resilient against global disruptions.

In summary, the shift towards North American suppliers, coupled with strong investments in AI and sustainable technologies, positions the automotive sector for a transformative future. By prioritizing local partnerships and embracing technological advancements, the industry is gearing up to meet the demands of modern consumers while staying competitive in a global market.

Frequently Asked Questions

What percentage of automotive executives plan to rely more on North American suppliers?

Nearly 85% of automotive executives plan to increase their reliance on North American suppliers in 2025.

What are the main areas of investment for these executives?

Executives are investing in hybrid, electric, and traditional combustion technologies as well as in innovations like 3D printing and robotics.

How important is AI in the automotive industry's future?

AI is viewed as crucial, with nearly a third of suppliers planning to adopt it to enhance product development and supply chain efficiencies.

What role does Xometry play in this industry shift?

Xometry supports the automotive sector by providing a platform that connects buyers with manufacturers, facilitating local sourcing and onshoring efforts.

What are the key innovations that executives are focusing on?

Key innovations include developments in electric vehicle battery production and the exploration of alternative fuel sources.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

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