ACT Research: Chip Availability Continues to Hamper OEM Production
In the release of its Commercial Vehicle Dealer Digest, ACT Research reported that its analysts are less confident that supply-chain issues will subside enough for commercial vehicle OEMs to fully meet customer demand this year and next.
The report, which combines ACT’s proprietary data analysis from a wide variety of industry sources, paints a comprehensive picture of trends impacting transportation and commercial vehicle markets. This monthly report includes a relevant but high-level forecast summary, complete with transportation insights for use by commercial vehicle dealer executives, reviewing top-level considerations such as for-hire indices, freight, heavy and medium duty segments, the total US trailer market, used truck sales information, and a review of the US macro economy.
According to Kenny Vieth, ACT’s President and Senior Analyst, “Recent commentary from leaders in the semiconductor industry point to a more cautious outlook for longer. ASML, a key supplier of semiconductor production equipment, recently called out a ‘significant shortage of semiconductor manufacturing capacity this year and next’.” He elaborated, “In light of this and other industry commentary, we believe lower-for-longer chip availability is likely to restrain the industry’s ability to meet otherwise-strong customer demand.”
Vieth mentioned additional downside risks, saying, “Moreover, about half of the global supply of neon, critical for chipmaking, is concentrated in Odessa, Ukraine, where production has been down since February. The gases that were purified in Ukraine were generated by Russian steel manufacturers. A scramble to re-source is on and inventories are limited.”
About why ACT continues to expect higher build, despite these production challenges, Vieth stated, “Carrier profitability is robust, we expect any recession to be shallow and short-lived at this point, and our Class 8 models are indicating pent-up demand, as well as prebuying potential in advance of CARB’s costly Clean Truck mandate.”
ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.
ACT’s 67th Seminar is scheduled for August 23–25, 2022. The focus will be the potential impact of decarbonization and autonomous technology on commercial vehicles and on-highway transportation. Each event ACT shares its best-in-class data and forecast in presentations, as well as featuring guest speakers to dive into topics of interest for the benefit of attendees. The agenda includes key industry leaders, who will be announced at a later date. For more information about Seminar 67 Watts Under The Hood: Transportation Transformation, click here: https://www.actresearch.net/seminar-67/.
ACT Research recently completed POWER UP, a look at 7 global regions and more than 20 countries in a review of local regulations, infrastructure, and the impact on the adoption of battery and fuel cell electric commercial vehicles through 2040. This forecast is the first of its kind, a review of the decarbonization of commercial vehicles around the world. POWER UP is available now at https://www.actresearch.net/power-up/.
Additionally, ACT Research published an update to CHARGING FORWARD, a North American-centric battery and fuel cell electric vehicle adoption rate forecast, covering 23 vehicle applications, in Classes 4–8 commercial vehicles, through 2040. CHARGING FORWARD is considered by many industry leaders to be the apex of analysis and economic-based total cost of ownership modeling in the industry. And, it is now available for purchase at https://www.actresearch.net/electric-vehicles-charge/.
Currently, the team at ACT Research is engaged in a commercial autonomous vehicle multi-client study. Through this work, we have identified adoption rates and forecast for autonomous Classes 4–8 vehicles through 2040. On Thursday, May 26, ACT’s autonomous team will hold a virtual briefing and update about the study’s progress to date. More information about our Autonomous Commercial Vehicle Study and the upcoming briefing can be found here: https://www.actresearch.net/autonomous-cv/.
Click here for more information about ACT’s Commercial Vehicle Dealer Digest.
Click here for information about other ACT Research publications and services.