Supply Chain: Getting Parts to Market Post Pandemic [THA 237]

Key Talking Points
- The biggest disruption in the supply chain since World War II- demand coming out of the pandemic, the reason for inflation. Not a singular problem, it’s the entire system being overwhelmed. COVID restrictions with overseas ports.
- Shipping issues and delays- ports backed up, just being able to get space on a truck or shipping containers. Shipping container fee for the boat is 20K. Starting to use more airfreight.
- Truck issues- access and drivers
- Raw material shortage- chemicals, oil, microchips, steel etc.
- Labor issues- working in plants and warehouses. Stimulus is keeping a lot of people at home. Labor inflation
- 7,000 workshops in the USA- busy as they want to be as they manage their capacity.
- 1 million jobs available in industry plus retirement is a double edge sword.
- Nearshoring is growing- less supply risk but labor issue is still prevalent
- Quality issues- competitors with the same part available are made in low-cost countries. You need customer satisfaction, the brands that you long trust for quality are still brands to trust. Top shops want the best quality parts.
- Manufacturer website- Knowyourparts.com
- How long will it last? How long will we see this level of demand for repair shops? This year that will have over 11% growth over last year. Next year over 5% growth. 2023 and 2024 growth slow of course, but is still above the pre-pandemic trend.
- Electrification- more opportunity than threat for the aftermarket, be ahead of the curve.
- A special thanks to Bruce Ronning, Brian Norko, Malcolm Sissmore and Paul McCarthy for their contribution to the aftermarket.
- Books Page HERE
- Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.
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