Parts makers fearing the worst-case supply chain scenarios from the Detroit 3 strike have been relieved by the tentative agreements the UAW reached with the three automakers.
But the financial ripple effects of the strike are likely to last for a while. And for some suppliers, the coming weeks and months could prove particularly difficult as they ramp production back up and grapple with reduced revenue and cash flow, experts said.
"The longer-term implication for suppliers is that this unfortunately is probably going to mean some suppliers probably aren't going to make it through," said Laurie Harbour, an industry analyst and CEO of Harbour Results Inc., during an Oct. 31 webinar. "Even though we ended the strike, there is tremendous vulnerability in the supply chain."
While fears that a strike would shut down every UAW-represented assembly plant or drag on for months did not come to pass, the strike still significantly affected the supply base.