Manufacturing: National and International Trends in Auto Industry and Manufacturing Millie Marshall, President Toyota Motor Manufacturing, West Virginia,

Manufacturing: National and International

Trends in Auto Industry and Manufacturing

Millie Marshall, PresidentToyota Motor Manufacturing, West Virginia, Inc.

(TMMWV)WVEDC Annual Conference

September 23, 2014 1

Motor Manufacturing, West Virginia, Inc.

Agenda 1. Auto Industry

2. Toyota in North America

3. International Companies

4. Toyota West Virginia (TMMWV)

5. Women in Manufacturing

2



Auto Industry in North America

3

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 AmericaMotor Manufacturing, West Virginia, Inc.

A Look at 2014

5

• GDP Growth Forecast +2.5 to 3% • Building Consumer Confidence

Home BuilderConfidence

8 Year High in Dec.

Unemployment

5 Year Low at 6.7%

Auto Loan Rates

At Historic Lows


2014 Sales Forecast

66

20132013

+4.5%+4.5%

20142014

Toyota Motor SalesToyota Motor Sales

20132013 20142014

INDUSTRYINDUSTRY 　　

+2.6%+2.6%

Source: TMS DOD December 2013


Toyota in North America

7


Strong Momentum For Toyota

2014 Sales Forecast

2.3 million vehicles

Outperforming The Industry America’s Best-Selling Car

8 New/Updated Products#1 Retail Brand

Corolla

RAV4Tundra

60% Hybrid Market

11 Years in a Row11 Years in a Row

8


Localization Efforts

70% of vehicles made in N.A are sold in N.A.

9

High Domestic Content (Avalon, Camry, Sienna & Tundra: 75%) 　


Toyota Philosophy is to: Build Where We Sell

Headquarters

ComponentVehicle Assembly

Engine Assembly

R&D

Future Headquarter

TMMWV

North America

Begin in 2017 (Sales, Financial

Services & Manufacturing)


Employment 　

45,000

35,000

25,000

15,000

5,000

Total Investment 　

$25 $20

$15

$10

$5

2.0

1.5

1.0

0.5

Vehicle Production

$30

$25

$20

$15

$10

1.86 Million

40,759

$32 Billion

Local Purchasing

95 97 99 01 03 05 07 09 11 13

95 97 99 01 03 05 07 09 11 13

$25 Billion

95 97 99 01 03 05 07 09 11 13

95 97 99 01 03 05 07 09 11 13

11


Looking Forward

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

Lexus RX350

12

Transmission


International Companies

13


14


Total of 21 Japanese Companies-11 came after Toyota’s establishment-7 are our suppliers

Total of 21 Japanese Companies-11 came after Toyota’s establishment-7 are our suppliers

15


What Factors Do International Companies Look For when Locating Facilities in the United States

Location to Supplier Base

Location to Customers

Access to Railways and Interstate Highways

Physical Site

Toyota North American Suppliers

16



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

17



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

1818



Strong Workforce Necessary Job Skills

o Communicationo Problem Solvingo Problem Identificationo Teamwork

HOW CAN COMMUNITIES MARKET THEIR AREA TO

FOREIGN COMPANIES

19


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


A.M.T. (Advanced Manufacturing Technician)

•A special Associate Degree program providing a multi-disciplinary, 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

20


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

Preparing Students for Future Careers

21Information From Wikipedia

70% intended to study engineering, technology, or computer 70% intended to study engineering, technology, or computer sciencescience

Toyota West Virginia(TMMWV)

22


TMMWV’sSuccess in West Virginia

23


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

24

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Milestone

Project

Nov :SOP

Aug :SOP

May :SOP

July :SOP

Gear

２ GR

ZR cap. 411K/Year

cap. 228K/Year

5AT cap. 191K/Year

cap. 274K/Year

6AT

ZZ

MZ

Groundbreaking

Announcement of MZ

Announcement of AT

Announcement of Lexus　

Announcement of Gear

Announcement of AT Expansion

6AT Capacity expansion

ceremony

Mid

SOP-Jul

10 millionth

456K

Dedication10 year Anniversary

15 yr AnniversaryAnnouncement

expansion6AT capacity

expansion6AT capacity

501K 741K

Milestone & Project

24

TMMWV Success in WVMotor 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)

25

TMMWV Success in WV


15 Year Anniversary – Donations to Buffalo & Eleanor Fire Departments – TMMWV TMs

are volunteers

Philanthropy $6.6 Million contributed 2013: Team Members volunteered

over 11,000 hours at non-profits

26

Japanese Culture Presentation at a local elementary school

Japanese Culture Presentation at a local elementary school

TMMWV Success in WV


Arbor Day Volunteers @ Buffalo HighArbor Day Volunteers @ Buffalo High

American Red Cross Blood Drive = blood donated in May will help

more than 368 patients.

American Red Cross Blood Drive = blood donated in May will help

more than 368 patients.

Green Acres Regional Center TourGreen Acres Regional Center Tour

TMs participated in Special Olympics Golf Classic = over $825,000 raised

since 1998

TMs participated in Special Olympics Golf Classic = over $825,000 raised

since 1998

> Venza > Sienna> Avalon > Highlander> Camry > Rav4> Lexus RX350 > Corolla

TMMWV Facts

274 cyl Engine

Vol: 420K/year

V6 EngineVol: 233K/year

6 speed ATVol: 501K/year

Produce Powertrains for:

TMMWVMotor Manufacturing, West Virginia, Inc.

My Dream for TMMWV

1. Focus on continuing to bring new business to Buffalo2. Strengthen On-the-Job Development 3. Continue to be a strong community supporter – Great Place to Live and Work!

28

NPLD Volunteer Event

"Expectation is for everyone to meet the company KPI’s in a Learning, Caring, and Inclusive environment”

TMMWVMotor Manufacturing, West Virginia, Inc.

Women in Manufacturing

29


30

%

Women in ManufacturingMotor 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

31


• 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

32


Women in Manufacturing in N.A.

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

33


• 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. 34


Women in Manufacturing…. What Can We Do?

Questions?

35


Manufacturing: National and International Trends in Auto Industry and Manufacturing Millie Marshall, President Toyota Motor Manufacturing, West Virginia,

Documents

auto manufacturing

auto industry updatethe

toyota2014 sales forecast2

united stateslocation

toyotas establishment7

toyota philosophy

total investment

hybrid market11 years