By Joe Giacomin, Managing Director, Automotive

(248) 453-0092 | jgiacomin@asgteam.com

A Corporate Tale

A major corporation was in the process of upgrading its IT infrastructure, which is the driving force for its entire marketing and sales function, company-wide. Their Chief Information Officer (“Roger”) was slated to head the team that would evaluate offerings from a variety of vendors and make a recommendation to the executive staff. To say that the task was important to the firm would be an understatement. The successful integration of the right system would be an immediate contribution to the company and facilitate a sustainable pattern of growth in the future.

Obviously, a lot was riding on this project, and as a result, Roger sat squarely in the proverbial hot seat. If his analysis and recommendation proved successful, he would be “the undisputed hero”. Roger anticipated accolades from management, a lucrative bonus, speaking engagements, maybe even a showcase in a few industry publications.

So, how should Roger approach this task? Making an incorrect decision will severely harm the company. As for Roger and his team, it could be grounds for dismissal, damage to their reputations, and, at the very least, ignite a move toward a feared “reassignment”.

Evaluating a major purchase is not for the weak, so for insurance, Roger chose to pursue a strategy of safety over most other factors. The story unfolds…

Roger and his team thoroughly reviewed several excellent proposals. Among them were well-established firms with household names…companies that had proven records of success. They also investigated some solid, but somewhat unknown contenders and finally, a few up-and-comers with “leading edge” technology and accompanying industry buzz. With a couple of exceptions, the competing firms, old and new, large and small, offered a wide spectrum of capabilities in what seemed to be very functional systems. While price was a consideration, top management underscored value and performance. Their directive from the executive suite: “A system that will transcend the status quo, be user-friendly and most of all, make the company more productive and ultimately more profitable.”

Roger also engaged outside consultants to review the proposals. The consultants were armed with impeccable academic credentials, and they were quite knowledgeable about computer systems and software.

A relatively unknown vendor (RUV) that the team reviewed was populated with people who really understood Roger’s business. They were keenly aware of the unique challenges the company encountered…and several of their staff members had direct experience working in the same industry as Roger’s. They asked great questions and proposed a system that could be implemented on schedule, competitively priced with minimal downtime. RUV’s system contained the features that were perfectly compatible today – and tomorrow.

It made a whole lot of sense. The other vendors presented reliable, acceptable products, but the somewhat underpublicized firm (RUV) really had it all over the other systems…hands down.

Enter the consultants. While they were highly regarded and had unparalleled technical skills, these folks didn’t have much grasp on Roger’s business. They were highly intelligent but resided primarily in the world of the theoretical… not the practical. The consultants advised Roger to recommend Big Company Alpha. “BCA” was an established provider with an extensive track record. Their product was adequate, but not the giant leap in capability the company was seeking. And while BCA was among the most expensive, bringing BCA on board would be a “safe” decision.

Roger thought long and hard about each proposal. Many people on his team believed the smaller, relatively unknown vendor (RUV) understood their business and would offer the exceptional results they were seeking. However, it would be Roger whose name would forever be attached to this decision. He reasoned, that if he recommended “BCA” and their system failed, he could always reply: “ Well, it was “BCA”… one of the top companies and it was recommended by some very smart people” – but if he opted for ”RUV” and for whatever reason, it failed, in Roger’s mind, he would be out on a limb. Better to play it safe and not risk negative exposure.

And so, there you have it. Roger decided to go “CYA” with BCA. He saved his job… for now. But what about tomorrow? Will the BCA system satisfy future growth requirements? Will the company suffer financially in the long run? Roger didn’t stick around to address those questions. He was off and running toward his next business venture. During his interview process with a prospective new employer… when asked about the IT project at his previous company, he shrugged his shoulders and exclaimed… “It came highly recommended, and after all, it was a BCA.” 😊

JAG note: Variations of this fictionalized account are common. The Rogers of the world tend to fear retribution… holding back what could be game-changing information. Even at the highest levels, key executives may not wish to “Rock the Boat”. Winning teams encourage a free, open exchange of ideas. It’s an environment where everybody wins.

2026: The Road Ahead

Following a subdued business period during the 2025 holiday season, the attitude within the OEM and supplier transportation industry has been more enthusiastic than we’ve experienced since early 2020 (pre-COVID-19).

Manufacturers in this segment, especially from the supplier side, have been dealing with forecast constipation for quite some time… primarily because the number of consumers opting for electric vehicles was lower than expected following encouraging sales by early adopters. The initial success by start-up EV Maker, Tesla, followed by a snowball effect from newbies and legacy manufacturers, both foreign and domestic, placed parts makers on “Red Alert”.

Suppliers invested heavily as they prepared for the anticipated “boom times” promised by EV producers. This left many manufacturers scrambling to abandon their bread and butter, internal combustion engine (ICE) related products to compete, or even survive in what was believed to be the death of the gasoline-powered engine.

Times have changed as the approach to propulsion has returned to “evolution” instead of “revolution,” and product offerings will continue to be available in EV, hybrid, or ICE. The consumer will decide what they want and when they want it.

While electric vehicle dominance in some form or another is destined to be the endgame, the balanced approach, in the near term, is allowing manufacturers and their suppliers to accelerate plans previously frozen.

In our search and recruitment practice, inquiries and assignments from automotive supply and heavy truck markets, both OEM and Aftermarket, are moving up. The quest for top talent is gaining momentum.