DETROIT – Automotive supply chain expert Jan Griffiths warns of the domino effect of the ongoing UAW strike against Detroit’s Big Three automakers, specifically the smaller companies along the supply chain that feed the automakers.
Read: Historic UAW strike continues against Detroit’s Big Three automakers: What to know
“They call it a supply chain for a reason, you know what we say about chains? We’re only as strong as the weakest link,” said Jan Griffiths of Gravitas Detroit.
Tier 1 supplies products to the automakers, Tier 2 supplies products to Tier 1.
Griffiths said Tier 2 companies are more vulnerable.
“These tend to be family-owned businesses, smaller companies. And they are in an extremely precarious position right now,” she said.
The UAW has about 13,000 workers on strike at three plants in the Midwest, including the Ford Michigan Assembly Plant in Wayne. And UAW president Shawn Fain promised Monday, Sept 18, to expand the strike if necessary.
“It’s possible that they can differentiate between the companies based on the amount of progress that’s being made. But it’s clearly a decision in their hands. And I would imagine they’re going to make it sooner rather than later,” said Wayne State University Business Professor Marick Masters.
Griffiths said if the strike continues for four to six weeks, some Tier 2 companies could be forced to make some tough decisions.
“They are all over the place, but I would say the large concentration is Michigan, Ohio, Indiana, Illinois,” she said.