**U.S.:** A recent survey indicates nearly 85% of automotive executives plan to rely more on North American suppliers by 2025, driven by a desire for resilience amid global disruptions. There is also a marked trend towards reshoring and increased investment in emerging technologies like AI and electric vehicle production.
A recent survey by Thomas has revealed significant shifts in the automotive industry’s supply chain strategies, with nearly 85% of U.S. automotive executives indicating they will increasingly rely on North American suppliers in 2025. This move appears to be motivated by a desire to create more resilient and efficient supply chains, particularly in light of ongoing global disruptions.
According to the findings from the second annual “Driving Progress: The 2025 Automotive Manufacturing Survey,” 41% of the executives surveyed plan to reshore at least some of their supply chain operations. This indicates a notable trend towards localising production and sourcing, which could reshape existing power dynamics between suppliers and automotive companies. By partnering with local suppliers, firms may aim to reduce vulnerability to international supply shortages and geopolitical uncertainties.
The survey highlights that automotive leaders are diversifying their investments across various technologies. While the allocation between hybrid (37%), electric (28%), and traditional combustion engines (30%) is relatively balanced, there is a clear focus on emerging technologies that enhance manufacturing capabilities. Notably, developments in electric vehicle (EV) battery production (41%) and alternative fuel sources (37%) are at the forefront of current innovations sought by executives.
Artificial Intelligence (AI) is also gaining traction within the industry, with nearly a third of those surveyed indicating they plan to adopt AI technologies to streamline product development and enhance supply chain efficiencies. “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,” said Peter Goguen, Chief Operating Officer of Thomas, emphasising the urgency for businesses to evolve in response to market demands.
These trends signify a remarkable evolution in supplier relationship management (SRM), where the emphasis on collaboration between customers and suppliers is intensifying. Automotive companies are seeking not just strategic partnerships, but preferred relationships that can withstand the pressures of modern supply chain challenges.
In the wake of these developments, the Thomasnet industrial sourcing platform is positioned as a vital resource for buyers and procurement professionals, connecting them to over 500,000 manufacturers across various categories. The platform offers tools for navigating this rapidly digitising landscape, potentially empowering businesses to build more robust and locally-focused supply chains.
Source: Noah Wire Services
