(WXYZ) — A potential strike is drawing closer amid negotiations between the Big Three automakers and the UAW, representing nearly 150,000 auto workers. Much of the impact of what happens will be felt by hundreds of suppliers in the United States.
In Sterling Heights, Citic Dicastal and other suppliers are closely watching the negotiations.
For Dale Hadel, running a leading company that designs, develops, engineers and builds aluminum wheels for vehicles of all makes and models is a passion.
"These are wheels that are in production," said Hadel, showing us around.
As an automotive supplier that focuses on products varying in size, Hadel says his company employs 120 people at this location on Mound Road.
The business is also close to more than one automotive factory, where UAW workers are negotiating for a new contract.
"We work with all the domestic manufacturers, assembling vehicles in the NAFTA region," said Hadel.
He says with a strike deadline approaching on September 14, the outcome of what happens will have a huge impact on suppliers.
Right now, the UAW is asking for double-digit pay raises, eliminating tiers, restoring pensions, a 32-hour work week and better health care.
The Big Three have pledged to negotiate in good faith as things continue.
"There’s a large concern about work stoppage if there is a strike, we are hoping there isn’t one," he said. "Five out of eight jobs in the area are somehow related to the auto industry.”
If a strike were to happen, he says suppliers could face significant losses depending on their size.
"Everything stops and it’s backing up the entire supply chain system. It’s already fragile as a result of COVID," said Hadel.
David Zoia studies the auto industry and tells us history has shown smaller suppliers may not survive a potential strike.
“It’ll be pretty crucial. It could impact a lot of them severely," said Zoia, auto analyst, Ward's Automotive.
With a massive amount of parts shipped across the country each day, factories often rely on everything from engines to transmissions to doors, brakes and more being delivered.
“It’s pins and needles for some of these guys. They’re just sitting on the sidelines and they’re going to be impacted without really much say,” said Zoia.
Hadel says the overall footprint the industry has on the economy is profound.
“The restaurants, hotels. Everything in this town is related to the auto industry. The real problem is if it’s prolonged ... the economy goes the way the automotive companies go," said Hadel.
Suppliers are in daily communication with car makers, and tell us they’ll continue tracking progress of negotiations.
