Automakers embrace women-owned firms

Automakers are making more room for women-owned businesses in their supply chain, according to Detroit automakers and leaders in the women's business community.

It's a trend community leaders spotted among women-owned businesses at the fourth annual Michigan Women's Business Conference & Expo, held Thursday and Friday at the Sheraton Detroit in Novi.

"Automotive companies have begun taking steps to include women business owners," said Michelle Richards, president of the Michigan Women's Business Council. "More and more women business owners are getting opportunities for big contracts."

The council is growing, with at least 100 more businesses this year compared to 2003. Those businesses, owned and managed by women, tallied $3 billion in sales in 2003 and employ more than 10,000 people.

The automakers' presence Friday was visible from the expo's sponsors -- including General Motors Corp., Ford Motor Co., DaimlerChrysler AG and Honda Motor Co. -- to the awards the council handed out. Among those honored were Sharon Cannarsa, president and CEO of Brownstown Township-based Systrand Manufacturing Corp., which makes parts for engines and transmissions for the Detroit automakers, and Ford's Ray Jenson, director of the automaker's supplier diversity development office.

"We're really getting past that last hurdle," Richards said. Women "are being asked to be at the table."

Ford, which requires suppliers to report their business with minority companies, plans to require the same from suppliers for women-owned businesses by 2006.

Lori Hines, one of Ford's managers of minority supplier development, said it was part of an "a-ha" moment, recognizing that women play a major role in deciding which car a family buys.

"We want them to be our suppliers as well as our customers," Hines said.

GM estimates women influence 85 percent of purchasing decisions and directly make 45 percent of decisions to purchase a car.

"We want to ensure that we are looking at the best supplier," said V. Diane Freeman, senior manager of GM's supplier diversity program. In more cases now, Freeman said, that is a woman-owned business.

Freeman cited Wayne-based Rush Trucking Corp. and Systrand Manufacturing as examples of women-owned businesses that are meeting GM's expectations.

Plastech Engineered Products Inc., of Dearborn, leads the list of women-owned suppliers breaking new ground.

Founded by Chairwoman and Chief Executive Julie Brown, Plastech expects sales to grow by 20 percent to $1.2 billion this year. The company was named metro Detroit's largest woman-owned business in Crain's 2004 Book of Lists. The privately held company's customers include Johnson Controls Inc., Ford, GM and DaimlerChrysler's Chrysler Group.

Joint ventures between women-owned businesses and established suppliers are also helping women gain market share in the industry. An agreement with Textron Inc. of Providence, R.I., helped Jeanette Abraham, president and CEO of Detroit Heading LLC, purchase 51 percent of the Detroit maker of fasteners.

"There's a comfort level for people to see you in a joint venture," Abraham said.

But her goal is to buy the entire company, which Abraham plans to do in 18 months.

While more women-owned auto suppliers are finding success, the days of underestimating women in the industry might not be over, said Regina Momgaudas, owner of Fenton-based AMI Inc., which makes truck door hinges and fuel doors for service departments and builds portable tanks used to paint cars.

When Momgaudas sought clients 20 years ago, they often asked to speak to her partner or an expert. She recalls saying: "Honestly I can help you. Try me."

Seeking clients is still an ordeal, she said.

Source: Detroit Free Press