Chip Shortages and Truck Delays

selective focus of engineer holding computer microchip

In a recent Wall Street Journal article, problems related to the manufacturing of heavy Class 8 trucks are once again making headlines.  On top of an already congested supply chain, shortages of semiconductors have created shortages in the electronic components of vehicles that are seemingly affecting all organisations involved in the manufacturing of vehicles.

As a result of new vehicle shortages, carriers are not only battling against a shortage of drivers.  While a steady supply of work is critical for a successful operation, both equipment and labour are proving to be some of the most challenging parts for fleets to manage at this time.

With new trucks in short supply, the value of used vehicles is worth watching.  Carriers used to a steady influx of vehicles may have to extend the lifespan of their existing fleet.  However, supply chain issues are also affecting the availability of replacement parts.

Through a combination of factors, supply chain issues are affecting large parts of society in the wake of the COVID-19 pandemic.  As trucking companies struggle to find new trucks and parts for their used trucks, supply chain issues could potentially be exacerbated.  Up until recently, the just-on-time model for parts procurement has allowed carriers and manufacturers alike to reduce their costs associated with maintaining a parts stockpile, but current logistical issues are reason for some to rethink their approach to parts procurement and vehicle purchasing.