Tooling is the "burden of success" for many parts company and the lifeblood of countless tool, die and machine manufacturers. However, with the significant changes in the automotive industry in the late 1990’s, which continue in the new millennium, the payment trade terms for this integral asset have changed dramatically.
Gone are the days of the tool manufacturer receiving progress payments. Welcome to the days of "I’ll pay you for the tooling when the vehicle manufacturer pays me". The tooling procurement cradle-to-grave has increased from 3-10 months to 18-30 months over the past five years alone. And there is no sign of the pendulum swinging back, as the vehicle manufacturers look to "risk share" with the parts suppliers by having the parts suppliers own more and more of the investment previously paid for by the vehicle manufacturer at job 1.
At T&E Capital we have SOLUTIONS for these issues whether you are a vehicle manufacturer, parts manufacturer or a tooling manufacturer. T&E Capital’s SOLUTIONS are different for each client and different depending on your role in the industry chain.
T&E Capital’s two base "Credit Programs" have been developed and kaizened over 10 years:
Tooling Procurement Credit Program and