With the COVID19 pandemic becoming less of a threat due to widespread vaccination, many have started to believe that things will return to ‘normal’. The Feds have stepped forward to curtail inflation and the supply chain appears to be improving. However, automakers are still faced with supply chain problems. Even after two years, inventory remains low. For Ford, many Ford F-series trucks, Ford Mavericks, and the Blue Oval SUVs are still sitting ideal on factory floors due to parts shortages for the V8 engines.
Automakers Continue to Face Shortages
Initially, there was a semiconductor chip shortage but supplies of other much-needed parts also started to dry up due to supply chain issues. It quickly became a complex problem and the auto manufacturer has not been able to achieve an easy solution.
Forecasting the Future
In an interview with Ford Authority, Ford CEO Jim Farley stated his predictions for the future, “I have stopped forecasting. I mean, the bottom line is we think it’s going to happen to continue in the foreseeable future. I think we’re very good at dealing with these now. We’ve gotten better and better, more efficient in helping our suppliers find labor, whatever it takes. It does feel like Whack-A-Mole, but we’re getting better at doing that.”
“And I guess I think we should kind of count on this happening for some time. I don’t think the labor market’s going to ease any time soon. It has a big impact on us, so we’re kind of running our business now and have developed a bit of a rhythm around these challenges that we’re seeing. And I think it’s going to extend way into next year. Does it end at next year or the year after or halfway through? I don’t know. I don’t think we should count on any of that.”
Problems with Labor and the Supply Chain
In addition to being unable to obtain necessary parts (even after two years), auto manufacturers face serious labor shortages. They simply cannot fill the job vacancies to meet the demand even if they had all of the needed parts. The entire situation has become a catch-22 with no easy solution. Farley even went so far as to say that the supply chain, such as trucking, is also undergoing labor shortages which is why they are unable to ship the necessary parts even when they are lucky enough to get them from China and other global suppliers.
