VAGTC auto symposium covers tariffs, technology

Business owners and executives from across West Michigan learned about the effects of tariffs on the auto industry, the global automotive outlook, and how to attract talent during the 20th West Michigan Automotive Suppliers Symposium.

The March 7 event, hosted by the Van Andel Global Trade Center, was held at Loosemore Auditorium on the Pew Grand Rapids Campus with the theme: "Planning for the Future - Managing Today for Tomorrow." 

Keynote speakers Dave Jerovsek, president of GHSP North America, and Marc Smeyers, chief technology officer at GHSP, said staying true to the company's core values helped them through three tough transitions.

"Our core values are at the center of our business," said Jerovsek. "We changed what we do, but not who we are. Core values define what we need to do and set our long-term vision."

Lisa Reisman, co-founder and executive director of MetalMiner, gave a presentation on tariffs, sharing strategies to mitigate price risk. She said her beliefs about the effects of tariffs are somewhat controversial.

"Tariffs are not the factor that caused price increases," said Reisman. "The 232 tariffs helped lift prices but they didn't cause it.

Reisman said the rise in commodity and industrial metals prices began in 2017, several months before the tariffs began in March 2018. She said companies need to look at profits to see the impact of tariffs. She added that while some companies went down or held steady in 2018, at least 12 industries posted profits.

Grand Valley alumnus Mike Wall, '94, executive director of automotive analysis at IHS Markit, said trade and tariffs will continue to be a threat to the industry.

"General pressure on vehicle pricing will be in our crosshairs because of tariffs on vehicles and parts," said Wall. "Europe and Japan are vulnerable, but it's been a big help to possibly have Canada and Mexico pulled off the table."

Wall said the vehicle sales outlook will benefit from strong consumer confidence, job growth and credit availability, but federal action on interest rates and the risk of policy mistakes could hurt sales.

Plante Moran was the title sponsor of the event. Other sponsors were Warner Norcross + Judd; IHS Markit; Chase Bank; Morrison Industrial Equipment; Michigan Economic Development Corporation (MEDC); The Right Place; and BEHCO-MRM.