Supply chain disruptions
The last few
years have created a perfect storm to disrupt supply chains. COVID-19 shutdowns
caused decreasing demand in certain industries in 2020. With fewer people on
the road and cars generally getting less use, there was a decrease in the need
for vehicle parts. Then, an ice storm in February 2021 knocked out plants and
factories across the South, the Suez Canal was blocked for six days in March
2021 and people began to return to a more normal level of driving, which caused
increased demand but decreased supply. The auto industry has been one of the
hardest-hit sectors. “Parts are more expensive, labor is more expensive and
repair costs overall are more expensive,” Ellis says.
Perhaps the
most evident of these vehicle-related supply chain disruptions was the
difficulty in obtaining semiconductors. Semiconductors, often called “chips,”
are used in a wide array of vehicle applications, including driver assistance
systems, entertainment systems and electronic mechanisms.
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