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Carmakers are facing a new challenge: Chip Shortages

Source: https://www.advan.us/blog.php

After the lockdown last spring that forced manufacturers from all sectors to halt production, auto makers now have to face another challenge: the global chip shortage due to the high demand on consumer electronics (laptops, gaming consoles, TVs etc.). The increased need for the technology devices along with the initial lockdowns and employee furloughs overwhelmed chipmakers and now are struggling to keep up with the surge in orders. Another factor was the faster than anticipated recovery in the second half of 2020 as several manufacturers in the sector ramped up the car production to rebound from the spring’s shutdowns and increase the chance of hitting the year’s target.

In an effort to tackle the crisis on chip shortages, carmakers announced they would cut production. Fiat/Chrysler was one of the first to idle some of its factories. It did not take long for Ford and General Motors to announce their plans to slow down the car production to deal with the limited supplies.

We looked at the data at the US plants for the 3 carmakers. In January, Fiat/Chrysler employee counts were down 35% year over year while at Ford’s and GM’s factories down 19% and 13% respectively.

However, automakers are not the only ones to face shortages in supplies. Other industries struggle too, forcing them to production disruptions. Looking at the foot traffic data to Advan’s Industrials index, we saw that employee counts have been decreasing since mid-November 2020 signaling a slow-down in production to other industries in the sector.

To learn more about the data behind this article and what Advan has to offer, visit https://www.advan.us/.

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ForwardKeys is one of the leading travel analytics firms that provides investment firms with alternative and predictive data on the travel industry. Data is offered both on the demand and the offer-side of the aviation market.

Actual Air Reservations is an aggregation of flight bookings made via the Global Distribution Systems. Exclusive agreements make that global travel data is available, including regions that are generally difficult to track. This data contains valuable insights into the profile, behaviour, and impact of events on past, present and future air travellers.

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Financial institutions use this data for artificial intelligence and predictive models to forecast the performances of businesses. Combined, the datasets can provide insights into the financial health of businesses operating in the travel and tourism industry. This list contains companies like airlines, airplane leasing companies, oil companies, hotels and travel agencies.

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Data is changing the speed of business. Investors, Corporations, and Governments are buying new, differentiated data to gain visibility make better decisions. Don't fall behind. Let us help.

DATA PROVIDER SPOTLIGHT

ForwardKeys

ForwardKeys is one of the leading travel analytics firms that provides investment firms with alternative and predictive data on the travel industry. Data is offered both on the demand and the offer-side of the aviation market.

Actual Air Reservations is an aggregation of flight bookings made via the Global Distribution Systems. Exclusive agreements make that global travel data is available, including regions that are generally difficult to track. This data contains valuable insights into the profile, behaviour, and impact of events on past, present and future air travellers.

Seat Capacity provides insights into the scheduled flights from 99% of global commercial airlines.

Financial institutions use this data for artificial intelligence and predictive models to forecast the performances of businesses. Combined, the datasets can provide insights into the financial health of businesses operating in the travel and tourism industry. This list contains companies like airlines, airplane leasing companies, oil companies, hotels and travel agencies.