ROLE OF NONWOVENS IN AUTOMOTIVEINTERIOR SURFACE AND CONSTRUCTION
APPLICATIONSPREPARED FOR:AUTO INTERIORS 2003DETROIT, MI
MAY 15, 2003papers/ai03
ROBERT ELLER ASSOCIATES, INC.CONSULTANTS TO THE PLASTICS AND RUBBER
INDUSTRIES
PRESENTED BY :ROBERT ELLER
ManagementDECISIONSANALYSIS
MARKET
ECONOMIC
TECHNICAL
4000 Embassy Parkw ay - Suite 230 - Akron, Ohio 44333-8328 USAPhone: 330-670-9566 / Fax: 330-670-9844
Email: [email protected] - Home Page: w w w .robertellerassoc.com
HIGHLIGHTS• THE AUTO INTERIORS MARKET• DRIVING FORCES FOR SUBSTITUTION• MATERIALS/PROCESS TECHNOLOGY
SHIFTS IMPLICATIONS• INTERMATERIALS COMPETITION• EUROPE/NAFTA DIFFERENCES• HEADLINER• FLOOR/ACOUSTICS MODULES• DOOR TRIM• VALUE-ADDED OPPORTUNITIES FOR
NONWOVENS
AUTOMOTIVE TEXTILES . . .AN ECUMENICAL PERSPECTIVE
COATED FABRICS
REGENERATEDFIBER BATTING
(SHODDY)
NONWOVENSFACINGS
FOAMS(COMPETE/COMPLEMENT)
NEW LIGHTWEIGHTACOUSTIC FIBERS
WOVEN/KNITTEXTILES
ARTIFICIALLEATHER
LEATHER
AUTOTEXTILESMARKET
SOURCE: ROBERT ELLER ASSOCIATES, INC., 2003ecu persp 03.vsd
ManagementDECISIONSANALYSIS
MARKET
ECONOMIC
TECHNICAL
Robert Eller Associates, Inc.
Automotive Interior Soft Trim:Skins, Foams, Coated Fabrics, Textiles, and Acoustic Barriers
Prospectus for a Global Multiclient Industry Analysis
MODULEFABRICATION
ANDINTEGRATION
TECHNOLOGIES
REQUIREMENTS
OCCUPANT SAFETYACOUSTIC REQUIREMENTSWEIGHTELV LEGISLATIONESTHETICSTELEMATICS INTEGRATIONSENSORYSMELL
INTERIOR MODULES- COCKPIT- HEADLINER- DOOR- FLOOR/ACOUSTICS- TRUNK LINER- SEATING- PILLAR COVERS
CONSTRAINTS
MANUFACTURING ECONOMICS
SKINS
FOAMS
SUBSTRATES
COATED FABRICS
TEXTILES (WOVEN, NON-WOVEN)
CARPET
ACOUSTIC BARRIERS
QUALITY
CRAFTSMANSHIP
PRODUCT POSITIONING
SUPPLY CHAIN MANAGEMENT
slide-covautointsofttrim701 02.vsd
MULTICLIENT PROSPECTUS:NONWOVENS IN AUTOMOTIVE TRIM
• TECHNOLOGY,ECONOMICS FOR ADVANCED NONWOVENS
• ANALYSIS/QUANTIFICATION OF CURRENT/FUTURE POTENTIAL
• MODULE FABRICATION TECHNOLOGY IMPLICATIONS• EMPHASIS ON NEW NONWOVENS TECHNOLOGY• ALL INTERIOR MODULES• INDUSTRY STRUCTURE IMPLICATIONS• EUROPE/NAFTA• TO BE OFFERED JOINTLY BY ROBERT ELLER
ASSOCIATES, INC. AND JOHN R. STARR,INC.• PROSPECTUS AVAILABLE
SOME OPERATING HYPOTHESES
• NEW NWs TECHNOLOGY NEW TRIM MARKETS • NW VALUE-ADD OPP’YS : UNDEREXPLOITED• BOTH MATERIAL/PROCESS COST SAVING POSSIBILITIES • MODIFICATION POSSIBLE IN FACE FABRIC AND LAYER
CONSTRUCTIONS• ACOUSTICS PROPERTIES CAN BE TAILORED• CURRENT PENETRATION IS PRIMARILY IN HEADLINER,
FLOOR SYSTEMS, PACKAGE TRAYS• ONLY 17% OF POTENTIAL IS REALIZED TO DATE• NO: SEATING(LIMITED), DOOR TRIM, PILLAR TRIM,
AIRBAG• NWs WILL PARTICIPATE IN NON-STRUCTURAL
COMPOSITES• NWs AND FOAMS COMPETE AND COMPLEMENT
NEW TECHNOLOGY NONWOVENS’ SUPERIOR ATTRIBUTES
• IMPROVED PERFORMANCE:SOFTNESS,TACTILE, CONFORMABILITY/DRAPE DURABILITY
• BREATHABILITY/CONTROLLED POROSITY• ACOUSTIC/THERMAL INSULATION, FILTRATION• UV RESISTANCE• PRINTING,EMBOSSING, DYEABILITY• NON-FRAYING(VS. TEXTILES)• MICRODENIER• FILTRATION
SOME NW TARGET MARKETS(NAFTA)
START MEDALLIONSFOAM LAMINATION OPP’Y
32DOOR TRIM
15% FOR FACE FABRIC35HEADLINER
13% SHARE41TRUNK LINER
LT WT FIBER OPP’Y55FLOOR /ACOUSTICS
STARTING EUROPE(SIDES)90SEATING
COMPETE WITH PU FOAMS23DASH MAT
NOTE/PENETRATIONAREA(MM SM)
MODULE
SOURCE: ROBERT ELLER ASSOCIATES, INC., SOFT TRIM MUTLICLIENT STUDY
SOURCE: ROBERT ELLER ASSOCIATES, INC.,JOHN R. STARR INC.
AUTOMOTIVE FABRICS MARKET VALUE (NAFTA/EUROPE), 2002
0.0
0.5
1.0
1.5
2.0
2.5
INT. TRIM ACOUST. BKNG / REINF.
NOTE: INCLUDES TEXTILE, NONWOVEN, WOVEN, COATED FAB., REGEN. FIBER BATTING
$ (B
ILLI
ON)
SOURCE: ROBERT ELLER ASSOCIATES, INC.,JOHN R. STARR INC.
AUTOMOTIVE FABRICS MARKET SIZE (NAFTA/EUROPE), 2002
0
50
100
150
200
250
300
350
INT. TRIM ACOUST. BKNG / REINF.NOTE: INCLUDES TEXTILE, NONWOVEN, WOVEN, COATED FAB., REGEN. FIBER
BATTING
DEM
AND (K
t)
OVERSUPPLYSLUGGISH VEHICLE DEMAND
OEM PROFIT DECLINE
TIER 1 PRICE PRESSUREAUTOMOTIVE SOLUTIONS- DECONTENT- GEOGRAPHIC SHIFT- ASSEMBLY EFFICIENCY- PLATFORMCONSOLIDATION
COST REDUCTION
OUTSOURCE NEWPROCESSES
MATERIALSUBSTITUTION
SUPPLY CHAINCONSOLIDATION
CRAFTSMANSHIPW/COST SAVINGS
PRESSURETIER 2 SUPPLIERS
VALUECHAINSHIFTS
NEWTEXTILE
TECH.
SOURCE: ROBERT ELLER ASSOCIATES, INC., 2003oem supp dyn 03.vsd
OEM/SUPPLIER DYNAMICS
NONWOVEN PATH-TO-MARKET OPPORTUNITY FORADDING VALUE RESIN
NONWOVENPRODUCTION
NONWOVEN
FOAMLAMINATION
NW/FOAMLAMINATE
MODULEASSEMBLY
ASSEMBLEDMODULE
OEM
PREFORM
MODULEASSEMBLY
PUFOAMRESIN
PREFORMEDSUBSTRATE SUBSTRATE
RESIN
MODULEASSEMBLY
PU RESIN?SKIVED PU SHEETPO FOAM SHEET?
NOTE: = VALUE ADD OPPORTUNITIES FOR NONWOVENS
SOURCE: ROBERT ELLER ASSOCIATES, INC., 2003 nw op val ad 03.vsd
AUTOMOTIVE TRIM TARGETS FOR NONWOVENS
DOOR:ACOUSTICS/WATER SHIELD,DOOR TRIM SURFACEMEDALLION
SOURCE: ROBERT ELLER ASSOCIATES, INC., 2003foam tgts 02.vsd
HEADLINER
PILLARTRIM
PACKAGE TRAYAIRBAGS/AIRBAG DOOR
FLOORSYSTEMS:(ACOUSTICS,SURFACELOAD FLOOR)
SEATBACK
TRUNKFLOOR
SEATING
DASHMAT
A U T O M O T I V E F O A M F A M I L I E S A N D E X A M P L EA P P L I C A T I O N S
A U T O M O T I V EF O A M S
P O U R E D( B A C K F O A M )
S H E E T B L O C K P R O F I L E
E P D M T P VP U P U P V C P OS H E E TF O A M
O T H E R( R U B B E R )
S H E E T I N T E G R A LS K I N( U E V )
X L P O N O N -X L P O
G A S K E T S
S T E A MC H E S T
M O L D E D
E P P E P P O
S T R A N DF O A M
P U
B O D YS E A L S
I N T E R I O RE N E R G Y
A B S O R B E R S
S K I N SG A S K E T SI N S T .P A N E L ,
S E A T ,A C O U S T I CB A R R I E R S
T E X T I L EL A M I N -
A T E S
B U M P E RS Y S T E M S ,
L O A DF L O O R
S O U R C E : R O B E R T E L L E R A S S O C I A T E S , I N C . , 2 0 0 3f o a m f a m i l i e s 0 2 . v s d
R I G I D S E M I - S T R U C T U R A L F O A M S A N D W I C HS T R U C T U R E
B A R E :
M A Y B E C O L L A P S E D T O F O R M I N T E G R A L H I N G E
R I G I D F I B E R M A T S K I N
B E A D F O A M
C A R P E T / N O N - W O V E N / W O V E N T E X T I L E L A M I N A T E :C A R P E T O R W O V E N O R N O N - W O V E NB A C K I N GR I G I D F I B E R M A T S K I N
B E A D F O A M
R I G I D S K I N O R N O N - W O V E N B A C K I N G
S O U R C E : R O B E R T E L L E R A S S O C I A T E S , I N C . , 2 0 0 3r s f o a m s a n d w ic h 0 2 . v s d
DRIVING FORCES FOR NONWOVEN GROWTH
-REDUCED COATINGS-MATERIAL SHIFT-BINDERS ?
-NO-SMELL INTERIOR-REDUCED V.O.C./FOG
INTERIOR EMISSIONS
-AZDEL SUPERLITE-BEAD FOAMS-NONWOVENS
SEMI-STRUCTURAL SANDWICHES
FLOOR SPACE MANAGEMENT
-MONOMATERIAL SANDWICHES-RECYCLATE CONTENT, NFCs
-ELV LEGISLATIONEND OF LIFE
-IMPROVED ESTHETICS- CRAFTMANSHIP
-NON-CARPET FLOOR-INVISIBLE AIRBAG DOORS
UTILITY FUNCTION/LOOK
-ENERGY ABSORBING FOAMS GROWTH-AIRBAG SOLUTIONS
HEAD/SIDE IMPACT REGULATIONS
OCCUPANT SAFETY
-ELIM. HOT POUR PU FOAM SEATING-ENHANCED MICRODENIER POSITION
-REDUCED NOISE-EARLYACOUST INVOLV.-TAILORED ACOUSTICS
ACOUSTIC PERFORMANCE
ON-BOARD ACOUSTIC BARRIERS-"POPULATED" PANELS-ON-BOARD ACOUSTICS
MODULARIZATION-PARTS CONSOLIDATION-SANDWICH CONSOL.
PROCESS COST REDUCTION
MATERIALS/PROCESS IMPLICATIONS AND EXAMPLES
ACTUAL OR POTENTIAL CHANGE
DRIVING FORCE
EUROPE/NAFTA DIFFERENCES
HIGHER IN EUROPEWT. SAVE VALUE
HIGHER IN EUROPEFAVORS MONOMATERIALS
POLYOLEFIN PRESSURESHIGHER IN EUROPEWEIGHT SAVE PREMUIMSAME?COST SAVE PRESSURES
SAMEACOUSTIC PERFORMANCE PRESSURES
HIGHLY PENETRATED-EUROPE
FLOOR/SURFACE
HIGHLY PENETRATED -EUROPE
HEADLINER FACE FABRICNON WOVEN STATUSPARAMETER
HEADLINER
• FACE FABRICS: NAFTA HAS LOWEST NW PENETRATION(15% 20% IN 2004,FORD,GM)
• TRICOT WILL DECLINE• LOW VALUE MODULE• PROFIT IS IN THE OVERHEAD SYSTEMS• COST REDUCTION MAJOR DRIVER• PP NONWOVEN OPPORTUNITY?• HYDROENTANGLED NWs SHARE GAIN• SUBSTRATES PP FOAMS, AZDEL SUPERLITE®• GLASS/PU LOSING MARKET SHARE• EUROPEAN PENETRATION NW GROWTH• ACOUSTICS ARE CRITICAL• ROLE FOR MICRODENIER NWs
NON WOVEN HEADLINER SHARES
0
1020
30
4050
60
70
8090
100
EUROPE NAFTA KOREA JAPANSOURCE: FREUDENBERG VITECH
MA
RK
ET
SHA
RE
,%
OTHER
NONWOVEN
TRICOT
FLOOR/ACOUSTICS
• 3-5 LAYERS• INCREASED FUNCTION(E.G. LOAD FLOORS)• SPUNBOND PET HAS 43% SHARE IN NAFTA BACKING• IMPROVED ACOUSTICS REQUIRED• HEAVY LAYER ELIMINATION NEW CONSTRUCTIONS• HIGH NW PENETRATION IN EUROPE• LT. WT. FIBER WILL CHANGE CONSTRUCTION• FIBER/FOAM COMPETITION IN UNDERLAY• ABILITY TO VARY IN XY AND Z-PLANES IS NONWOVEN
ADVANTAGE• MONOMATERIALS CONSTRUCTION OPPORTUNITY
SOURCE: ROBERT ELLER ASSOCIATES, INC.;
SOFT TRIM MULTICLIENT STUDY
COMPARISON OF REGIONAL TRENDS IN AUTOMOTIVE CARPET (2002)
0
20
40
60
80
100
120
EUROPE JAPAN NAFTA
PER
CEN
TNEEDLE TUFTED
INCUMBENTS/CHALLENGERS IN AUTO ACOUSTICS
FLOOR, DOORTAILORED FIBERSXREGEN. FIBERS
FLOOR PANELSEPP BEAD FOAMSXPU FOAM (POURED)
FLOOR, DASH, OH SYSTEM
POLYOLEFIN SHEET FOAMS
XPU FOAM (SKIVED)
FLOOR-BETTER MASTIC-ELIMINATE?
XMASTIC
DASH, FIREWALL, FLOOR, FENDER LINERS
-METALLOCENES-ELIMINATE →LT. WT. FIBERS
XHEAVY LAYER
HOOD, OH SYSTEM
-PLASTICS/CELL.-NONWOVENS
XGLASS FIBER
INSULATE
DAMP
EXAMPLE LOCATION
CHALLENGERBARRIER TYPE
INCUMBENT
ACOUSTIC BARRIER MATERIALS IN AUTOMOTIVE FLOORING
NATURAL FIBERS
LT. WT FIBERSPET/PP FIBERS
PO FOAMS
AZDEL SUPERLITE
55OTHER
TUNED ACOUSTICS ACCELERATE PENETRATION
5075PU FOAM
SHODDY USE WILL DECLINE5020REGENERATED CELLULOSE FIBERS (SHODDY)
NAFTAEUR
NOTECURRENT SHARE %
MATERIALS
DOOR TRIM
• VERY LOW PENETRATION RATE• TARGETS ARE:
-MEDALLIONS(PO FOAM LAMINATION OPP’Y)-ACOUSTIC PADS/WATER SHIELDS-FACE FABRICS
• CRAFTSMANSHIP OPPORTUNITY• 3D FORMING IS CHALLENGE• IN MOLD FORMING OPPORTUNITY• INTEGRATION WITH LOW PRESSURE
MOLDING• TEXTILE USUALLY MATCHES SEAT
NONWOVEN COMPETITIVE INTERFACES
NW STARTING (EUROPE)PO FOAM LAM. OPP’YPP IS MAJOR SUBSTRATE
WOVENS, KNITSCOATED FABRIC,
DOOR MEDALLION
NW STARTING(EUROPE)TPO COATED FABRIC START(EUROPE)
PVC COATED FABRICWOVENS, KNITS
SEATING SIDEPANELS
15%(NAFTA) INCREASINGTRICOTHEADLINER FACE FABRIC
LT. WT FIBER/FOAM COMPETITION
SHODDY, PU FOAMUNDERLAY
SPUNBOND PET HAS 43%(NAFTA)
BACKING
HI NW PENET. (EUROPE)TUFTED NYLON(NAFTA)
CARPETFLOOR:
NOTEINCUMBENTMODULE
VALUE-ADDED DECORATION WITHNONWOVENS
TPEVENEER: COLORED TPE
NONWOVEN SUBSTRATE
IN-MOLD DECORATION (IMD):BACK-PRINTED LAMINATES CLEAR SURFACE FILM
BACK PRINTED(PATTERN OR COLOR)NONWOVEN SUBSTRATE
IN-MOLD DECORATION (IMD):CO-EX FILM/SHEET
CLEAR SURFACE FILMCO-EX COLOR LAYERSUPPORT/SUBSTRATE LAYER
SOURCE: ROBERT ELLER ASSOCIATES, INC., 2003vadecoalt02.vsd
WHAT WILL DRIVE NONWOVEN GROWTH?
• CONTINUED SEVERE PRICE PRESSURE• MATERIAL COST SAVE• PROCESS COST SAVE• PERFORMANCE IMPROVEMENT
-UV RESISTANCE-VOC/FOG REDUCTION-OCCUPANT SAFETY-ACOUSTICS-FILTRATION
• MONOMATERIAL CONSTRUCTION• PO SHEET FOAM/TEXTILE LAMINATION• SURFACE ESTHETICS IMPROVEMENT• VALUE ADD OPPORTUNITIES
VALUE ADDED OPPORTUNITIES FOR AUTOMOTIVE NONWOVENS
• IMPROVED SURFACE ESTHETICS• AVOID PREFORMS• IN-MOLD FABRICATION• CRAFTSMANSHIP WITH COST SAVINGS• DIRECT PU FOAM LAMINATION• POLYOLEFIN FOAM LAMINATION• IMPROVED/TAILORED ACOUSTICS• IMPROVED PP NONWOVENS• TARGET ALL-PP CONSTRUCTIONS• X,Y AND Z-AXIS MODIFICATION
SUMMARY• MATERIAL/PROCESS DRIVERS FAVOR NONWOVENS:
-ACOUSTIC REQUIREMENTS, WT. SAVINGS-PROCESS COST REDUCTION-MATERIALS COST REDUCTION
• NONWOVENS AND FOAMS WILL COMPETE• CONTINUED SEVERE PRICE PRESSURES LIKELY • RECYCLING - NOT U.S. DRIVER, SIGNIFICANT EUROPE
DRIVER• EUROPE- EARLY TECHNOLOGY LEADER• EURO/NAFTA USE PATTERN WILL CONVERGE• SYSTEMS/PROCESS TECHNOLOGIES – ADD VALUE• HEADLINER, FLOOR-MAJOR EARLY TARGETS• SEAT, DOOR TRIM, PACKAGE TRAY,PILLAR TRIM-NEXT
TARGETS• BARE ROLL GOODS VS SYSTEM SUPPLIER ROLE?• POTENTIAL UNDER-EXPLOITED
ABOUT ROBERT ELLER ASSOCIATES, INC.
• TECHNICAL, MARKET AND ECONOMIC ANALYSIS IN SUPPORT OF MANAGEMENT DECISION
• AUTOMOTIVE – SPECIALTY• OFFICES IN US AND EUROPE• RECENTLY COMPLETED SOFT TRIM MULTICLIENT
STUDY
ABOUT JOHN R. STARR, INC.
• MANAGEMENT AND TECHNICAL CONSULTING FIRM SPECIALIZING IN NONWOVEN PRODUCTS FIELD, WORLWIDE FOR 30 YEARS.
• AUTOMOTIVE NONWOVEN AN IMPORTANT PART OF THE PRACTICE.
• PARTICULAR FOCUS ON LEADING EDGE NONWOVEN TECHNOLOGIES WITH POTENTIAL TO DISPLACE OTHER NONWOVENS, WOVENS, KNITS AND OTHER MATERIALS