Team 1 Plastics, a plastic injection molding company for the transportation industry, is dedicated to becoming a recognized leader in the supply of high quality, cost effective, injection molded plastic components. With the looming takeover of electric vehicles (EVs), the company has stayed diligent about how this transition will impact business. Team 1’s President and co-owner Craig Carrel was quoted by Crain’s Detroit Business in a recent article discussing the takeover of EVs, and how this may lead to the end of small businesses whose main focus is non-EV manufacturing.
According to their About Us page, Crain’s Detroit Business is “the top source of news, analysis and information on business in Southeast Michigan for decision-makers in the private and public sectors.” On April 15, 2022, Manufacturing Reporter Kurt Nagl published an article with Crain’s titled “Rise of electric vehicles threatens to decimate traditional Michigan manufacturers.” In the article, Nagl describes the looming takeover of EVs and the strategic planning that must take place for small Michigan manufacturers that have a main focus on non-EV manufacturing; like Team 1 Plastics.
Photos courtesy of michauto.org
In the photo we can see the vast difference in the number of components for a traditional Internal Combustion Engine (ICE) versus an EV. The top of this photo illustrates that a traditional ICE vehicle has over 2000 components. In contrast, the bottom illustrates an EV, which requires only 20 components. For a manufacturer like Team 1 Plastics, this change is significant, meaning less business as the demand for EVs rise. In order for these manufacturers to survive, it is essential to have an awareness of how ICE-dependent they may be. For example, according to the article, “after taking a harder look recently, [Carrel] was surprised to learn [Team 1] is more than 80 percent dependent. The way Carrel sees it, the company must do all it can now to start weaning itself off a dying technology.”
Strategically, Carrel and his team have already begun the planning for Team 1 Plastics’ future in relation to the push for EVs. “We’ve been in business 34 years, and this is like the third big push for EVs in that time, but this one seems more real because every automaker is making a push,” Carrel said. “You just start running the math, and there’s going to be less suppliers if we go to full EV futures. It’s a slow process but the numbers don’t lie. We’ve woken up a little.” In an effort for Team 1 to plan for a “full EV future” they have begun to incentivize their sales team to go after nonautomotive business.