2020 and 2021 have been challenging for businesses and individuals alike. The pandemic has caused factory shutdowns and production halts, causing most industries to see a disruption in supply chain for items they were once able to get with ease. From automobiles to microchips, and everything in between, we are seeing a short supply of necessary materials needed for businesses to grow and thrive.
The automobile industry is one that has been hit hard due to these shortages. If your business has been thinking about investing in a new vehicle or replacing an old one, you should consider doing it soon.
Many car manufacturers are halting production on certain vehicle types due to lack of supply of raw goods or price increases from their suppliers. Steel, aluminum, and precious metals are among some of the industries that have had soaring prices.
What does this mean for you? There is a lack of inventory of vehicles to choose from and not as much room for negotiating the price of vehicles. For more information on fleet shortages, read this blog written by BuyMax on the impact of COVID on the automotive industry.
Another cause of certain supply chain shortages is the labor shortage and lack of qualified truck drivers to transport materials. When the pandemic hit, truck driving schools shut down, and experienced drivers took it as a sign to retire early. As a result, many industries simply do not have the drivers to keep up with the high demand for their products.
These supply chain shortages have also affected the production of equipment for many industries, such as HVAC, electrical, and more. There has been a resin shortage which has affected the production of piping systems. This shortage and disruption is expected to last for the next few months. In addition, we have seen a semiconductor shortage which has impacted parts for equipment.
The price increases for materials and scarcity of certain parts, are causing a backlog of jobs since companies do not have the required equipment to complete them. Businesses are unable to get the quantity of materials they once were able to.
Successware is aiming to keep you informed of all things that affect your business and industry. We will update you with any additional information we learn about these shortages.