Bridgeton

Submitted by: Submitted by

Views: 462

Words: 1956

Pages: 8

Category: Business and Industry

Date Submitted: 01/29/2012 12:07 AM

Report This Essay

The union has worked with us and has even led in cost reduction programs. Now corporate is talking about outsourcing additional products. What more can we do tc, keep the business?

Mike Lewis, plant manager

The Automotive Component & Fabrication Plant (ACF) was the original plant site for Bridgeton Industries, a major supplier of components for the domestic automotive industry. The history of the plant dated back to the 1840s when the adjoining river attracted mills processing the rich lumber resources in the area. The site progressed through several industrial uses, including an early wagon works, until finally purchased by the founder of Bridgeton. He opened his first office there in the early 1900s.

All of the ACF's production was sold to the Big-Three domestic automobile manufacturers. Competition was primarily from local suppliers and other Bridgeton plants. As long as the market was growing and dominated by U.S. automobile manufacturers, this strategy worked. It became less effective -when foreign competition and scarce, expensive gasoline caused domestic loss of market share. Su]ppliers found themselves competing for a shrinking pool of production contracts. Throughout the 1980s, the ACF experienced serious cutbacks due to this competitive pressure. However, as the 1990 model year budget approached, the ACF was still considered a critical plant. Model years ran from Sepi.ember I to August 31 and were the bases for planning and budgeting. The model year running from September 1, 1989, to August 31, 1990, was designated the 1990 model year. Productio:n contracts were usuallv awarded for a model year.

The Engine Plant Shutdown

T@e ACF first felt the effects of domestic loss of market share in 1985. After the first oil crunch in the n-dd-1970s, Bridgeton had built two plants for manufacture of fuel-efficient diesel engines iii anticipation of a continued growth in the market. One of these plants was at the ACF facility. When the growth in diesel-powered...