ASSOCIATE DIVISION DIRECTOR'S MESSAGE
The Impact of Allocations, Shortages and Supply Chain Issues By Loren Feldkamp AASP-MN Associate Division Director
Daily life in the automotive industry is proving to be difficult due to product shortages and supply chain issues. What once was taken for granted is now becoming difficult to achieve. We all see empty dealership vehicle lots brought on by the worldwide chip shortage. Independent automotive businesses that used to find common brake parts after one phone call now place multiple calls before finding what they need. The supply chain bottlenecks related to many full barges sitting in the ocean unable to be unloaded is impacting our industry and many others. The hope that ships might be unloaded faster is not coming true due to a shortage of truck drivers and workers in rail transportation. New car dealerships are experiencing numerous backorders on parts just like the independent automotive distributors are seeing. The lubricant and related product industry is also challenged in the current marketplace. Raw materials and chemical additive packages have been placed on allocation, which limits how much of each product distributors can purchase. Volumes have returned to normal levels and above, which has caused shortages
of products. Diesel exhaust fluid is increasing in price because the basic chemical ingredient, urea, is in short supply. Brake cleaners are rising in cost dramatically due to heptane and hexane producing factories being shut down by recent hurricanes. Many lubricant viscosities are in short supply due to base stock and additive shortages. Products not experiencing shortages are still being impacted due to transportation challenges, again leading to periodic shortages in the marketplace. Some lines of parts are not in shortage situations, but their packaging is in a shortage situation, adding to the complications. Last year’s freeze event, ongoing labor shortages, the pandemic effects and more recent events (such as hurricanes) are all being blamed. continued on pg. 22
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4 | November 2021
AASP-MN News
