The world appears to be running on microchips. There is currently a microchip shortage that is affecting the manufacturing of many types of products. The simplest chips can be found in your coffee maker. The more complex chips perform functions such as the power windows in your car. They are also instrumental in the mass production of trucks and cars. The microchip shortage has increased the time required for ordering new vehicles and delivery dates are being pushed out further and further.
The chip shortage started in 2020 with the COVID-19 pandemic. As the country went into lockdown, auto and truck manufacturers experienced a sharp decline in orders and saw new vehicle sales evaporate. Public health measures and government regulations forced the closure of most factories. Microchip manufacturers were also forced to shut down. Orders for new trucks have increased in recent months but the microchip industry has been unable to keep up with the spike in manufacturing demand.
Fleet owners are also experiencing the impact of the microchip shortage with the repairs and maintenance side of their business. Many replacement truck parts contain microchip technology and having an adequate inventory of replacement parts is critical to keeping a fleet running efficiently. Eventually microchip production will catch up with demand but in the meantime one of the smallest parts found inside a truck is causing some of the biggest problems for the transportation industry.
What industries does Guttman Energy serve? https://www.guttmanenergy.com/industries-served/