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.”