Upgraded infrastructure caters for auto industry

As the worldwide economic
downturn continues to affect
the automotive industry
negatively, many companies
are turning to other industries
to make up for losses incurred.
According to Fred Albrecht,
managing director of APC
Storage, the automotive
industry remains important,
but as the industry continues
to retrench and cut costs, it is
essential for businesses such
as his to pick up the slack
elsewhere.
“Only about 7% of
our business is with the
automotive industry,
accounting for about
R20 million a year. Having
said that, it is an important
and necessary part of our
business and we are being
affected heavily by the
financial crisis.”
He said expectations were
that at least three quarters
of the automotive business
would be lost this year. “At
the beginning of 2008 we
identified the automotive
industry as one area we were
failing in and ramped up much
of our business to service them
more efficiently.”
This included upgrading
infrastructure and led to
the purchasing of a vertical
carousel machine. “This
high-density storage system
picks up small parts much
more effectively and is
really intended for use in the
automotive industry. Then the
economic crisis hit and it was
much worse than expected.
We have now deployed
this machine and the other
infrastructure we had put in
place to other industries.”
Albrecht said the slump in
the automotive industry was
not necessarily all negative.
“We are confident that the
business will pick up again
and when that happens most
of this infrastructure will have
been tried and tested.”