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Let's Talk About the Supply Disruptions

Increased costs and product shortages have impacted society and taken a dramatic toll on the CV industry.
Date: October 22, 2021

In nearly every facet of our daily lives, we are reminded of supply disruptions. Now a daily topic on mainstream news, increased costs and product shortages have impacted society to an extent that was unforeseen prior to the pandemic — and there is no doubt that these issues have taken a dramatic toll on the commercial vehicle industry.

Commercial Vehicle Insight

Our data highlights how ongoing situation has permeated all HDMA member companies. In our monthly deep dives with the Pulse Series, member companies have reported shortages of componentry including semiconductors, steel, plastics, aluminum, rubber, and a variety of commoditized goods necessary in the manufacture of commercial vehicles.

However, it is important to note that HDMA members say the supply chain problems are not just a function of inaccessibility of parts. The situation is unique and is comprised of lack of materials, the unavailability of freight and logistics — which is leading to widespread, lengthy, and sustained delays for both inbound goods and outbound shipments — labor shortages, and the inaccuracy of production and demand forecasts.

Is There an End in Sight?

Unfortunately, there is no easy Band-Aid solution on the immediate horizon. In fact, our HDMA Pulse survey data indicates that supply chain issues have constrained supplier output to approximately 85% of demand for the past six months. All short-term remedies have been applied and all existing inventories of both incoming material and finished goods in the distribution channel have long been exhausted.

The resulting dilemma produced shortages in OE and aftermarket supply — albeit temporary — that have created a conundrum in the commercial vehicle marketplace expected to continue into mid-2022. Although no one could have predicted the myriad of issues that have furthered the current supply disruptions, applying lessons learned through industry collaboration and discussion will undoubtedly provide additional road maps to mitigating future supply constraints.

Dealing with the Current Situation

HDMA is proud to offer an avenue for you, our members, to discuss, debate, and address the situation — and your collective voice is important.

  • From the connection side, members continue to dive into the situation in our various councils and events.

  • Our monthly Pulse events have taken a deeper dive into the situation with insight provided by you and discussed with our Director of Research, Richard Anderson, and a host of industry research experts.

  • And, finally, from the advocacy front, our team has continued dialogue with the administration on mitigation efforts that serve the benefit of HDMA and MEMA member companies.

Ongoing connections and applied learning are our best armor — and your voice is being heard.

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