Where are the Tractor SEMICONDUCTORS?
The semiconductor shortage bottomed in September-October. However, supply constraints for this vital component remain unchanged for the commercial vehicle industry. Other supply and workforce challenges remain, as well.
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.
Those constraints are not localized in the Commercial Vehicle industry specific challenges, but continue as pandemic-driven failures in a globally reliant web of interrelated supply chains. Rebuilding complex global networks requires the system to spin at roughly the same speed, which it is decidedly not doing at present, stated said Kenny Vieth, ACT Research President and Senior Analyst.
“On the positive side of the ledger, in the recent round of Q3 earnings calls, major automotive CEOs indicated that they believe the semiconductor shortage bottomed in the September-October period. Backing up those claims, for the first time in in 8 months, automotive inventories in the U.S. actually rose sequentially in October. Less positive is that despite their lofty roles at the top of the global automotive industry, the CEOs remain less than forthcoming about when they believe the chip situation will experience material easing.”