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Date: 2013-08-01

INA Continues Spartanburg Cutbacks

INA Continues Spartanburg Cutbacks

Schaeffler Group's (Germany) INA bearing plant in Spartanburg, South Carolina continues to suffer from the side effects of a slumping U.S. auto industry.

In July 2007, the plant had nearly 400 workers. Since then, attrition and layoffs have left employment at just over 300. Reportedly, another 10% or more are at risk if the auto industry does not pick up.

INA Spartanburg manufactures ball bearings, needle roller bearings, and engine components for North American OEMs. The nearby BMW plant is not among its customers. INA inherited Spartanburg in its 1987 acquisition of Andrews Corp.

Spartanburg is hardly alone among bearing manufacturing plants, or even among INA plants. Layoffs at suppliers to U.S. auto and truck producers have been going on for more than two years.

For many companies, the magnitude of this particular downturn has been magnified as it coincides with a long-predicted cyclical downturn in the heavy-duty truck business.

The hardest-hit areas are Michigan, where more than 40% of the state's auto industry workers have lost their jobs since 2000; and Ohio, where more than 25% of 2000's autoworkers are unemployed.

Most analysts expect U.S. auto sales to be down again in 2007, with GM, Ford and Chrysler all planning additional cutbacks. GM is rumored to be working on a plan to offer all of its 80,000 employees a buyout option -- over 34,000 took advantage of a similar program in 2006.

For many bearing manufacturers, it has been a time to refocus strategic investments and market strategies on growing markets such as wind energy, heavy-duty industrial, and aircraft / aerospace. But for specific manufacturing plants, there are often few options to move beyond the product lines they are tooled and certified to produce.


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