By Boris Ladwig Daily News
Greensburg Daily News
---- — GREENSBURG — Honda spent more than $2.5 billion last year to purchase parts from Indiana suppliers, including Greensburg-based Gecom Corp. and Indiana Assemblies.
Honda announced this week that it recognized Indiana Assemblies for delivery. The company supplied Honda with more than 1.2 million parts in 2013.
Indiana Assemblies was one of three businesses to be recognized, out of more than 650 companies that supply Honda in North America.
According to its website, Indiana Assemblies is a joint venture between Dublin, Ohio-based Modular Assembly Innovations Co. and Honda-owned Midwest Express Inc. It began operations in Greensburg in 2008 and supplies Honda with wheel assemblies and power steering hose assemblies.
Honda spokeswoman Anita Sipes said that Honda’s proximity to its suppliers is critical to its operations.
“We want suppliers to be close,” she said.
Most of the companies suppliers are within a day’s drive, she said, which means that parts can quickly be delivered if the local production plant needs more.
She said Honda chose to produce cars in Greensburg because of the proximity to rail and Interstate and the city’s central location — but also because of its strong and thriving supply base.
Marc Coplon, executive director of the Greensburg/Decatur County Economic Development Corp., said that because of global supplier disruptions caused by heavy rains and tsunamis, Honda and other companies have urged manufacturing plants to try to source more of their parts locally.
Just about every local auto parts supplier, including Valeo, Gecom and Hitachi Powdered Metals, sells some parts to Honda, Coplon said.
That’s an indication of manufacturing jobs’ multiplier effect: For every $1 spent in manufacturing, another $1.32 is added to the economy, according to the National Association of Manufacturers.
Honda said that its operations in North America receive parts from more than 650 domestic manufacturers, including 49 in Indiana. The company last year spent more than $25.5 billion to purchase parts in North America.
Sipes said that some companies, such as Indiana Assemblies, specifically came to Greensburg to supply the Honda plant, but other local suppliers received business as well. And when production at Honda expands, suppliers see growth, too.
When Honda added a second shift, for example, suppliers had to ramp up production, Sipes said. And when Honda diversifies its production, by adding hybrid models, for example, it adds complexity — and opportunity — for suppliers.
Suppliers such as Indiana Assemblies deserve recognition for their hard work, Sipes said.
“They’re really a great organization,” she said. “They’ve done a great job.”
Indiana Assemblies could not be reached for comment.
Honda said in a press release that it employs more than 39,000 people in the U.S. and has invested more than $12.5 billion. The company’s four auto plants make nearly 2 million vehicles a year. A fifth plant is being built in Marysville, Ohio to produce the next-generation Acura NSX.
Contact: Boris Ladwig 812-663-3111 x7401; firstname.lastname@example.org