Motor Manufacturing, West Virginia, Inc.
Manufacturing: National and
International
Trends in Auto Industry and
Manufacturing
Millie Marshall, President
Toyota Motor Manufacturing, West Virginia, Inc.
(TMMWV)
WVEDC Annual Conference
September 23, 2014
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Motor Manufacturing, West Virginia, Inc.
Agenda
1.
2.
3.
4.
5.
Auto Industry
Toyota in North America
International Companies
Toyota West Virginia (TMMWV)
Women in Manufacturing
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Motor Manufacturing, West Virginia, Inc.
Auto Industry in North America
3
North America
Motor Manufacturing, West Virginia, Inc.
Auto Industry Update
• The U.S. economy is growing
• Much of the economic activity over
the past several years has been led
by auto manufacturing and sales.
• Good News – Analysts expect sales
to top 16 million units in 2014
4
North America
Motor Manufacturing, West Virginia, Inc.
A Look at 2014
• GDP Growth Forecast +2.5 to 3%
• Building Consumer Confidence
At Historic Lows
Auto Loan
Rates
8 Year High in Dec. 5 Year Low at 6.7%
Home Builder
Confidence
Unemployment
5
North America
Motor Manufacturing, West Virginia, Inc.
2014 Sales Forecast
2013
2014
Toyota Motor Sales
Source: TMS DOD December 2013
2013
2014
INDUSTRY
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Motor Manufacturing, West Virginia, Inc.
Toyota in North America
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Motor Manufacturing, West Virginia, Inc.
Strong Momentum For Toyota
Outperforming The Industry
America’s Best-Selling Car
2014 Sales Forecast
2.3 million vehicles
11 Years in a Row
60% Hybrid Market
#1 Retail Brand
8 New/Updated Products
RAV4
Tundra
Corolla
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North America
Motor Manufacturing, West Virginia, Inc.
Localization Efforts
70% of vehicles made in N.A are sold in N.A.
Toyota Philosophy is to: Build Where We Sell
High Domestic Content
(Avalon, Camry, Sienna & Tundra: 75%)
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North America
Motor Manufacturing, West Virginia, Inc.
Begin in 2017
(Sales, Financial Services
& Manufacturing)
TMMWV
Vehicle Assembly
Engine Assembly
Component
Headquarters
R&D
Future Headquarter
North America
Motor Manufacturing, West Virginia, Inc.
Employment
Total Investment
$25
$25 Billion
$20
45,000
35,000
$15
25,000
$10
15,000
$5
5,000
95 97 99
01 03 05 07 09
11 13
95 97 99
1.86 Million
01 03 05 07 09
11 13
Local Purchasing
Vehicle Production
2.0
40,759
$30
$32 Billion
$25
1.5
$20
$15
1.0
$10
0.5
95 97 99
01 03 05 07
09 11 13
95 97 99
01 03 05 07 09
11 13
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North America
Motor Manufacturing, West Virginia, Inc.
Looking Forward
Transmission
Lexus RX350
Capacity Increases
TMMC
TMMI
TMMAL
TMMWV
2014
2014
2014
2015
Lexus RX
Highlander
V6 Engine
6 Speed Auto
Transmission
30,000 Increase
15,000 Increase
200,000
Increase
240,000 Increase
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Motor Manufacturing, West Virginia, Inc.
International Companies
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Motor Manufacturing, West Virginia, Inc.
Total of 21 Japanese Companies
-11 came after Toyota’s establishment
-7 are our suppliers
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Motor Manufacturing, West Virginia, Inc.
What Factors Do International Companies Look For
when Locating Facilities in the United States
 Location to Supplier Base
 Location to Customers
Toyota North American Suppliers
 Access to Railways and Interstate Highways
 Physical Site
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Motor Manufacturing, West Virginia, Inc.
What Factors Do International Companies Look For
when Locating Facilities in the United States
 Available Utilities
>Electricity
>Natural Gas
>Water Supply Availability
>Site Drainage (storm water infrastructure)
>Telecommunication
>Water Mains & Storm drains
>Wastewater Facilities
 AEP was strategically involved in
Toyota’s site selection in 1996
 Several groups within AEP, from
land management to engineering
and their executive leadership, got
involved to make our project a
success.
 This first project in Buffalo brought
300 jobs and a $400 Million
investment to West Virginia
 Currently $1.3 Billion investment
and over 1,300 jobs
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Motor Manufacturing, West Virginia, Inc.
What Factors Do International Companies Look For
when Locating Facilities in the United States
 Environmental Conditions /Impact Fees
 Local / State Officials who are good Collaborators
 If a business operator believes he has to jump through many
governmental hoops before the first shovelful of dirt is turned for an
industrial facility, they may decide to go someplace with a friendlier
atmosphere
 Incentives*
* - Contrary to common belief – “Incentives”
are not high on Toyota’s List
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Motor Manufacturing, West Virginia, Inc.
What Factors Do International Companies Look For
when Locating Facilities in the United States
 Strong Workforce
 Necessary Job Skills
o Communication
o Problem Solving
o Problem Identification
o Teamwork
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Motor Manufacturing, West Virginia, Inc.
HOW CAN COMMUNITIES
MARKET THEIR AREA TO
FOREIGN COMPANIES
 Coordinate investments and align policies to support
sustainable communities
 Provide homes working families can afford,
 Reliable and economical transportation options,
 Shopping and other daily needs close to where people
live,
 Vibrant and healthy neighborhoods that attract young
people and businesses.
 Provide educational opportunities
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Motor Manufacturing, West Virginia, Inc.
A.M.T.
(Advanced Manufacturing Technician)
• A special Associate Degree program providing a multidisciplinary, technical foundation coupled with
continuous, real-world working experience with a
leading manufacturer.
• Students will attend classes for 2 full days per week,
with 8 to 10 contact hours of instruction each day.
• Work experience includes 24 hours of paid work per
week at Toyota.
• Total earnings while in the AMT program $40,000
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Motor Manufacturing, West Virginia, Inc.
Preparing Students for Future Careers
Project Lead the Way
 Classes offer students the opportunity to apply their math and science
knowledge in a hands-on, practical setting.
 With Project Lead the Way programs, student are exploring engineering
at a younger age in hopes that they will chose engineering or other
science fields as a career.
 PLTW has worked in other States
 True Outcomes survey of PLTW seniors at the end of their senior year
found that:
 93% intended to pursue a four-year degree or higher,
 51% intended to pursue a graduate degree, and
70% intended to study engineering, technology, or computer
science
Information From Wikipedia
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Motor Manufacturing, West Virginia, Inc.
Toyota West Virginia
(TMMWV)
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Motor Manufacturing, West Virginia, Inc.
TMMWV’s
Success in West Virginia
In 1995, a team was identified to help determine the WV location for
Toyota’s new 4 Cylinder Engine Plant which was a $400 million
investment and added 300 new jobs
Site Selection Criteria Included:
•200+ acres that could be developed for current and future needs
•Availability of a strong workforce
•Strong Rail and Interstate infrastructure
•Close Proximity to Supplier Base
•Support from State and Local Governments
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TMMWV Success in WV
Motor Manufacturing, West Virginia, Inc.
Milestone & Project
1996
1997
1998
1999
2000
Announcement
2001
2002
2003
2004
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
10 year Anniversary
Dedication
15 yr Anniversary
6AT capacity
expansion
Announcement of Lexus Announcement of AT
Groundbreaking
Milestone
Expansion
Announcement of MZ
Announcement of Gear
Announcement of AT
10 millionth
ceremony
Nov :SOP
Project
6AT capacity
expansion
6AT Capacity
expansion
ZR
ZZ
Aug :SOP
MZ
May :SOP
Gear
２GR
5AT cap.
July :SOP
SOP-Jul
cap. 411K/Year
cap. 228K/Year
191K/Year
6AT
Mid
cap. 274K/Year
456K
501K
24741K
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TMMWV Success in WV
Motor Manufacturing, West Virginia, Inc.
 8 Expansions
 Total Investment $1.4B
 Celebrated 10 Million Units produced in
2013
 first plant outside Japan to achieve
this accomplishment
 Employ over 1,300 Team members
 Annual Payroll: $127.7 Million
(including benefits)
15 Year Anniversary – Donations to Buffalo &
Eleanor Fire Departments – TMMWV TMs
are volunteers
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TMMWV Success in WV
Motor Manufacturing, West Virginia, Inc.
 Philanthropy $6.6 Million contributed
 2013: Team Members volunteered
over 11,000 hours at non-profits
American Red Cross Blood Drive
= blood donated in May will help
more than 368 patients.
Green Acres Regional Center Tour
TMs participated in Special Olympics
Golf Classic = over $825,000 raised
since 1998
Arbor Day Volunteers @ Buffalo High
Japanese Culture Presentation at
a local elementary school
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TMMWV
Motor Manufacturing, West Virginia, Inc.
TMMWV Facts
Produce Powertrains for:
> Venza
> Avalon
> Camry
> Lexus RX350
4 cyl Engine
Vol: 420K/year
> Sienna
> Highlander
> Rav4
> Corolla
V6 Engine
Vol: 233K/year
6 speed AT
Vol: 501K/year
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TMMWV
Motor Manufacturing, West Virginia, Inc.
My Dream for TMMWV
"Expectation is for everyone to meet the company KPI’s in a
Learning, Caring, and Inclusive environment”
1. Focus on continuing to bring new business to Buffalo
2. Strengthen On-the-Job Development
3. Continue to be a strong community supporter
– Great Place to Live and Work!
NPLD Volunteer Event
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Motor Manufacturing, West Virginia, Inc.
Women in Manufacturing
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Women in Manufacturing
Motor Manufacturing, West Virginia, Inc.
%
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Women in Manufacturing
Motor Manufacturing, West Virginia, Inc.
Women in Manufacturing in N.A.
• Manufacturing employs more than 12
million people in North America.
• 80% of manufacturers cannot find
skilled workers* (600K unfilled
manufacturing jobs in U.S.)
*U.S.News & World Report’s STEM Solutions
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Women in Manufacturing
Motor Manufacturing, West Virginia, Inc.
Women in Manufacturing in N.A.
• Female grads account for
60% of U.S. bachelor‘s
degree holders.
• Women make up 50% of the
workforce
• Women make up only 25% of
manufacturing workforce
*U.S.News & World Report’s STEM Solutions
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Women in Manufacturing
Motor Manufacturing, West Virginia, Inc.
Women in Manufacturing…
What Can We Do?
• Must combat the industry’s “image”
problem to attract more women
• Manufacturing has changed
dramatically - today’s jobs are high
tech, safe and clean
• Manufacturing jobs are innovative and
rewarding with salaries and benefits
above the national average
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Women in Manufacturing
Motor Manufacturing, West Virginia, Inc.
Women in Manufacturing….
What Can We Do?
• Encourage more girls to take STEM
(Science, Technology, & Engineer
Manufacturing)
• Must Change Culture – Inclusive
Environment (All viewpoints are equal)
• Offer Child Care Option
• Reward All TM’s on “Results” not
time spent in office
• Hold Mgmt Accountable for an
Inclusive Environment.
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Motor Manufacturing, West Virginia, Inc.
Questions?
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