| There must be some connection between a | | | | Jay Baron President of CAR also said that even the |
| company’s name and its fate. Just take for | | | | global market is not enough to provide all the tooling |
| instance the Northwest Tool & Die Co. which could | | | | shops available. They are only enough to fill half of the |
| have been a casualty of Michigan’s troubled auto | | | | automotive tooling capacity. He also added, "There's no |
| industry if not for Honda Motors. | | | | argument that our industry here makes great tools |
| The story goes this way; it was two years ago when | | | | want great tools at lower costs. They want local |
| the small tooling shop located just outside of Grand | | | | quality at foreign prices. There's the rub." It really helps |
| Rapids was getting ready to close down due to the | | | | when an automaker invest on a local tooling shop. |
| large debt that has accumulated to almost $6.5 million | | | | A few years back, Honda Motors has already chosen |
| and losing $11 million more money in when its largest | | | | four North American companies that produces dies |
| customer, the Tower Automotive Inc. had filed its won | | | | and molds for auto parts. These shops handle about |
| Chapter 11 case. | | | | 16 percent of Honda’s tooling and the automaker is |
| Luckily for Northwest Tool it was able to seek out a | | | | thinking of adding four more to its program by the next |
| contract with Honda Motor Co. which eventually saved | | | | two years. |
| the tooling shop from closing down and helped it to | | | | Actually dealing with local tooling companies cost more |
| reach its 39th year. Despite the Northwest Tool’s | | | | for Honda as compared to just importing tools from |
| bankruptcy filing, Honda has continued to give the | | | | other countries that is according to Tim Meyers, Senior |
| tooling company work. | | | | Manager in Honda’ North American purchasing |
| This continued business from Honda (the maker of | | | | division. Luckily for tool companies like Northwest Tool, |
| Honda fuel tank cap) has enabled the Northwest Tool | | | | Honda has this philosophy of buying parts where it |
| to finally double its staff to 83 workers and now is | | | | produces vehicles so it doesn’t have to worry |
| expected to reach $16 million this year. Anthony Chopp | | | | about shipping the tools from overseas or shipping |
| CEO of Northwest Tool & Die said that they have the | | | | them back in case of defects. |
| biggest influx of new customers on the time that they | | | | Meyers also added, "We're trying to provide them |
| were on the verge of bankruptcy. But now with all the | | | | some business stability so they can go ahead and |
| things happening to their company, CEO Chopp said | | | | make the investments to improve their |
| that they are still very fortunate. | | | | competitiveness." |
| Northwest Tool has been struggling to compete with | | | | Likewise, the company is also asking its supplier |
| other tooling companies overseas and 36 percent of | | | | Challenge Manufacturing to employ Northwest Tool in |
| Michigan’s tool and die shops have already closed | | | | making dies for its shape parts for the Acura RDX |
| down since there are not much business to compete | | | | and MDX. And just in case Northwest Tool’s |
| on that, according to the Center for Automotive | | | | didn’t make it they have a backup plan that would |
| Research. | | | | supply them with their required dyed parts. |