Supply-Side Constraints Again Dampen Commercial Vehicle Production Forecasts

According to ACT Research’s latest release of the North American Commercial Vehicle Outlook, near-term commercial vehicle production forecasts have been trimmed again amid continued supply-side constraints.

“The setup for the entire industry remains unchanged: Despite rock-solid demand metrics across the spectrum of medium and heavy-duty vehicle types, industry capacity remains range-bound across a broad front of supply chain constraints,” Steve Tam, vice president of ACT Research, said. “Just like heightened inflation, the current situation in North American commercial vehicle manufacturing is transient: The issues impacting production will pass. Of course, while transient implies a return to normal, the word does not describe magnitude or duration.

“Demand-side activities remain at as-good-as-it-gets levels, but supply constraints continue to mushroom. Given all they touch, semiconductors remain the primary culprit in automotive supply chain woes. While they have become a generic reference to the supply chain’s shortcomings, in actuality, there are scores of parts that continue to be impacted by the pandemic, by the lingering impact of steel tariffs (which have domestic steel prices well above other global benchmarks) and the February storm that incapacitated Texas and shut down swathes of the U.S. plastics industry for two-plus quarters. Aluminum extrusions are a challenge, wire is hard to find and tires have been mentioned since day one of the new cycle. And, reiterating, like the supply chains themselves, the issues are not only domestic and not only commercial vehicle.

“Semiconductors might be masking other component issues, but they are at the heart of the supply chain’s woes. Even as new ‘fab’ capacity is coming online this year and next, global automotive industry shutdowns continue.”

Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!

  • Hidden
  • RAM Group Holdings does not share or sell your personal information. The information we ask you to furnish is limited to what is needed to process your order fully and completely. You may unsubscribe at any time. View our Privacy Policy.
  • Please Confirm permission for Monitor/Monitordaily to e-mail you.
  • Hidden

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
Susie Angelucci
Advertising: 484.459.3016

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.