Thanks to a rush of orders from automakers, suppliers are cranking up production in North America. Feeling more confident about the next few years, suppliers are hiring and adding machinery and production lines, and even building plants. The extreme caution that followed the Great Recession of 2008 and 2009 is dissipating. BMW, Volkswagen and Mercedes Benz also are boosting orders, he said. "The export demand for those brands is much higher than planned, and we are trying to meet demand." According to a January survey of 109 suppliers by the Original Equipment Suppliers Association, 64 percent of respondents said they were optimistic about their outlook for the next 12 months, up from only 27 percent in a November survey. sales were much stronger than expected. GKN's factory in Celaya, Mexico, was struggling to meet growing demand for constant velocity joints, which allow the drive shaft to transmit power to the wheels. GKN, which makes CV joints mostly for front wheel drive vehicles, decided to get around the problem of limited capacity in North America by producing some CV joints in Europe for shipment to North America. "We made the decision at the tail end of last year," said Max Owen, president of GKN Driveline Americas. "We were working at the limit of our capacity." Production in Europe buys time for GKN to expand its North American plants, Owen said. In May, the Celaya complex will begin operating a new forge. By 2015, Celaya will produce 9 million CV joints a year, up from 3 million in 2005. GKN's plants in North Carolina and Ohio also are producing close to capacity, Owen said. "We are adding capacity across the board. There isn't a single product line that isn't growing strongly," he noted. Owen says GKN will meet rising demand in North America, but he fears the industry may suffer spot shortages. "I believe there are going to be bottlenecks," Owen said. "No supplier wants to be the weakest link, but there's always one. That would be up from 13.1 million units in 2011, but remains well behind 2007 production of 15.2 million. But suppliers are optimistic about the region's long term prospects, and they are investing accordingly. This spring, for example, Hella KG Hueck Co. will start construction of a $97 million factory in Irapuato, Mexico, to produce headlamps and taillights. The plant will produce 1.2 million headlamps and 1.5 million taillights annually, and production is scheduled to begin in mid 2013. Hella's North American plants are running at 75 to 80 percent of capacity hardly a sign of distress. But in November the German supplier decided to expand those plants to accommodate future growth. Credit is flowing With global original equipment sales of $3.5 billion in 2010, Hella can pay for such expansions out of its cash flow. But some suppliers especially small manufacturers are less fortunate. After the recession, many suppliers were unable to get bank loans to buy equipment or build new plants. Now the cash crunch is easing. At Precision Stamping, President John Parke in recent months overcame his reluctance to take on debt and obtained a $500,000 line of credit at 3 percent interest. The Howell, Mich., company will add storage space and make room in its factory for a newly purchased 300 ton press. The small family owned business, which has annual revenues of about $10 million, produces parts for engines and fuel systems as well as other components. "My dad lived during the Depression," Parke said. "He knew the value of a nickel, and he didn't like the banks. But we got a loan for the expansion. With interest rates so low, my CFO said the money was practically free." 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