Inflation and materials supply continue to weigh heavily on the minds of suppliers according to Wednesday’s Heavy Duty Manufacturers Association (HDMA) Pulse Webinar.
When asked of suppliers what is currently representing the greatest challenge for their business in 2022, inflation in business costs (36 percent) and raw material and component availability (32 percent) were followed closely by labor availability (28 percent), according to the Pulse poll of members, which are made up of the commercial vehicle supply market.
Despite those concerns, suppliers’ outlook on their company’s ability to fulfill orders over the course of the next six months is stable with OE production at 91 percent and the aftermarket reporting 88 percent.
While problems remain, most areas of the supply chain have stabilized somewhat, allowing for short and long-term business plans to become more optimistic, according to Richard Anderson, senior director, Research & Analysis, HDMA.
The poll asked its members for comments about what they thought were the biggest risks to their fleet customers. Responses included “Continued escalation in Russia/Ukraine spreading to other countries;” “inflationary impact on consumer buying habits leading to falling tender rejections, resulting in lower spot rates and reduced demand in new equipment;” and “port closures and intermodal delays.”
Regarding the continued escalation between Russia and Ukraine and the risk of the conflict spreading to other countries, Anderson said, “This is having a much larger economic impact than people are realizing. The longer this drags on, the more difficult it can be and the more it will impact fleets and start to disrupt the global shipping situation.”
Anderson said the greatest challenge to business in 2022 is inflation. “We are really looking at inflationary pressures everywhere [and] the ability for suppliers to not get pinched, but be able to pass along those cost increases. This is the critical issue.”
