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ews from the world
North America
Words Craig Ritchie
RV manufactures grapple with continuing supply chain challenges A major supply chain disruption first reported by AboutcampBtoB.eu in March continues to plague the North American RV manufacturing industry
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y early March the supply of propylene oxide – an essential raw material used in the production of foam for seat cushions – had reached critical levels in the US, causing a number of RV makers and boat builders in North America to cut production. By early April seat foam remained in short supply, with the expectation that shortages could persist into June. More recently, RV manufacturers and component suppliers alike have also had to contend with a new shortage of semiconductors. Semiconductors are used in a wide range of RV components, from engines in motorised units to electrically-powered components ranging from kitchen appliances to televisions and stereos to power jacks and even
window blinds. Yet a shortage of these critical components has had far-reaching impacts on both motorhome and trailer production. The current shortage of semiconductors in North America results from a combination of factors, including a US government attempt to ban semiconductor sales to Chinese technology firms like Huawei and ZTE that caused those firms to stockpile vast quantities of chips as a safeguard. Washington simultaneously blacklisted Chinese semiconductor manufacturers like Shanghai-based SMIC citing security concerns, thereby prohibiting US manufacturers from using their products. Fires at a pair of Japanese manufacturing plants that produces fibreglass for circuit boards have further contributed to today’s semiconductor shortage, while the February cold snap in Texas made matters worse by taking at least three US semiconductor plants offline. The resulting vacuum has left RV manufacturers and component manufacturers alike scrambling for semiconductors and often being forced into paying substantial surcharges in order to guarantee delivery. Some manufacturers have reported paying as much as US$40 delivery fees per unit for semiconductors that cost just $5. Refusing to pay would mean not getting chips at all, and not being able to fulfil sup-
Hankook Tire Enters Trailer Market in US
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ankook Tire America Corp. has announced that the company will begin selling trailer tires in the US with the launch of its new Vantra trailer tire line. The Vantra Trailer will be released in nine sizes, while the Vantra Trailer for high loads (TH31) will be released in three sizes. The products are built specifically for highway vehicles including travel trailers, fifth wheel trailers and pop-up camper trailers and trailers, according to the company, and are engineered to deliver exceptional durability and stability under heavy-duty conditions. “We’re committed to offering tire products
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that enable consumers to enjoy the freedom of the open road – and the adventure of the great outdoors.” said Curtis Brison, vice president of PCLT Sales. “We are eager to enter this market segment and look forward to serving the market with our new and innovative Vantra Trailer products.” Headquartered in Nashville, Tennessee, Hankook America markets and distributes a complete line of high-performance and ultra-high-performance passenger tires, light truck and SUV tires as well as medium truck and bus tires in the United States.
ply contracts to important customers and potentially losing that business to competitors. “We’re running into shortages everywhere,” says Katie Callahan, purchasing coordinator with South Carolina, US-based stereo manufacturer, Prospec Electronics. “We’ve had to pay tremendous surcharges for chips because the factory that produced them burned down and there’s just no more supply. It’s a significant cost increase driven by a lack of supply.” Automakers including Honda, Toyota, General Motors and Ford have cut production in North America as a direct result of semiconductor shortages. It is not known when the current situation will be resolved. Beyond seat foam and semiconductors, RV builders have also had to endure shortages and substantial cost increases on even basic commodities like plywood, aluminum and stainless steel. According to global data portal Index Mundi, current supply levels of several major commodities used in the RV industry lag far behind market demand. In some instances the gap is so great that material suppliers have put customers on allocation arrangements or invoked force majeure clauses in their supply contracts. The firm confirms significant price increases over the last six months for a number of commodities resulting directly from a lack of supply, including: a 20% jump in the cost of raw aluminium; a 25% bump in price for plywood; and a 10% jump in the price of plastic sheeting.
