How have you seen the automotive industry evolve through the years and what is your strategy to stay on top of all these changes?
The one main constant in the industry is that everything changes all the time. In 2017, sustainability emerged as a topic but there were no clear steps towards this goal. Three years later, once the pandemic hit, it started to gain momentum very quickly and here we are today trying our best to tackle issues like the carbon footprint, energy reduction and waste management. Additionally, customers increased requirements regarding sustainability, so we started to adjust our approach based on these needs - which have not been necessarily consistent industry-wide. Being present in several geographies, we are continually striving to satisfy all the needs that arise on this subject, while also enriching our company culture. Workforce diversity is an important metric in our business model and we believe in promoting it as much as we can. A lot of innovation actually comes from the people who are doing the work so it is important to have a safe and open work environment where everybody can feel free to share their ideas.
We are kind of agnostic when it comes to producing structures since they represent 85% of our total portfolio but our propulsion group is mainly focused on ICE vehicles (engine blocks, transmission cases and fuel systems). Contrary to popular belief, internal combustion cars are still in the plans of many OEMs but the demand for them is expected to slowly diminish over time. In order to be prepared for the changing times that are coming, we are focusing on investing our capital in new products like battery trays and motor housings. For the next couple of years, we plan to get the benefits out of all the investments that we made before and during the pandemic. Most of our plants are at full capacity right now but we are also keeping our eyes open for valuable acquisitions that could possibly be relevant for our future expansion. We hope that in 2023 we will reach $4 billion in revenue as the business has been growing steadily over the past years.
What makes you passionate about the automotive industry?
I have enjoyed heavy manufacturing ever since I was small and my father took me to see him work at the plant on Saturdays. Moreover, improving efficiency and reducing waste are staples of my life philosophy, and the fact that I get to drive these through the work that we do at Martinrea is extremely fulfilling.
The automotive industry is not only offering people the chance to make a good living but it also pushes forward a great deal of knowledge and technology.
I believe that we under advertise what we can actually do for society. With EVs gaining more and more attention, we have the opportunity to change the way the public is perceiving the automotive space.
In which way can efficiency be achieved, especially in relation with the new technologies that are now being used across the industry?
Utilizing technology to change the way people work can lead to great efficiency over a prolonged time but, ultimately, it all boils down to our way of thinking. The fear that equipment replaces human beings has no solid arguments because the truth is that all these new technologies help workers become more technical and capable. It is true that automation helps the industry have a greater product output but as the business grows, so does the need for a new workforce. In the U.S. we are now struggling to find specialized workers, so we are not bringing technology in to reduce heads but to compensate for the workforce gap.
What are the biggest challenges that you expect Martinrea will have to address in the coming five years or so?
We are very North American centric and at the moment there is a growing concern that we do not have enough people to grow into this space. We need the ability to move people where the work is, so better immigration policies would be incredibly beneficial. The U.S. strategy on onshoring will probably represent a challenge in the years to come. The industry tends to inhibit all the hardships that come along the way, as we did when we had to move our operations to Canada or Mexico due to lack of local workforce. Luckily, as there is a generous cash flow in the U.S., the economy is poised for some great activity over the next five years.
