The turbulence of doing business — or just living — in the 2020s is continuing.
While vaccinations and the easing of mask requirements may give some companies breathing room, for auto suppliers the impact of microchip shortages is only growing.
The latest outlook from consultants at AlixPartners says that the chip shortage could cost the auto industry a combined $110 billion in lost revenue in 2021. That's nearly double the estimate from January.
"The company said it also anticipates that net production of 3.9 million vehicles will be lost this year, bringing expected global light-vehicle production down to 80.7 million units," Alexa St. John, from our sister paper Automotive News, writes. "Automakers have been idling plants for days or weeks at a time as the shortage worsens, with Ford Motor Co., General Motors Co. and Chrysler owner Stellantis taking some of the worst hits."
For plastics suppliers to the auto industry, the chip shortage backlog comes on top of material cost increases and shortages.
I wish I could provide some great idea to help alleviate concerns, but at this time, easy answers are also in short supply.