Suppliers profitability, as measured by EBITDA, has been modestly declining since 2010 as a result of the increased fixed costs of meeting rebounding production volumes as well as numerous program launches.
- EBITDA margins rebounded from the depths of the global recession in 2010 as suppliers benefited from significant variable margin on increased production volumes with substantially lower fixed costs than prior to the recession
- Variances exist regionally with emerging market suppliers on average experiencing EBITDA margins in excess of the group median, while Asian suppliers, on balance, have seen margins contract over the past two years
For more information, please see the attached study.
