Deepening shortages of microchip production are rippling through the global supply chain, and are heavily hitting the RV industry.
What you may not know is that this is not a new hurdle for the RV industry to overcome. Industry members have seen this shortage happen three times within the last twenty years.
Why is this a reoccurring issue?
The shortage impacts not only the RV industry, but our cars, our smartphones, televisions, radios, medical diagnostic equipment, and our modern way of living.
Microchip factories have expensive equipment, and factories cannot respond to changes in demand. The RV industry has already had a hard time catching up with the demand since the COVID-induced spike in RV sales.
Although this shortage is not a new challenge, members within the RV industry have never experienced a shortage such as this.
Experts predicted it.
Rumors flew that there could be a chip shortage, and acted quickly.
Much like toilet paper, some companies decided to stock up to prepare for the effect of these rumors. The panic from fear of not receiving something that you urgently need to do your job led to manufacturers double ordering their supply. Those who did act early have kept their issues away from their customers but definitely furthered the shortage for everyone else.
Another factor of this issue is lead time. Lead times refer to how long it actually takes to get a chip after it’s ordered. RV companies are seeing an average of 18 to 20 weeks rather than the usual three to four weeks.
Experts predict that this will return back to normal this coming fall.
Executive Orders In The Supply Chain.
President Biden and other politicians have expressed alarm over the shortage and have taken action.
President Biden and Vice President Kamala Harris met with a bipartisan group of senators and House members to address the chip shortage’s impact on economic and national security, which Biden said is “the resilience and reliability of our critical supply chains.”
President Biden also stated, “In the meantime, we are reaching out to our allies, semiconductor companies, and others in the supply chain to ramp up production to help us resolve the bottlenecks we face now. We need to stop playing catch up after the supply-chain crisis hit. We need to prevent the supply chain crisis from hitting in the first place.”
President Biden’s orders include:
- The Assistant to the President for National Security Affairs (APNSA) and the Assistant to the President for Economic Policy (APEP) coordinating the executive branch actions.
- The APNSA and APEP, along with appropriate agency coordination, completing a review of supply chain risks within 100 days of the order.
- The Secretary of Commerce, in consultation with appropriate agencies’ heads, submitting a report identifying risks in the semiconductor manufacturing and advanced packaging supply chains and policy recommendations to address these risks.
How ICAT Logistics is Keeping Production On-Track.
ICAT Logistics Detroit, the RV industry’s preferred logistics partner, keeps production on track by managing every aspect of your logistics—including import, export, and guidance through customs, and warehousing while you wait to complete production.
Let ICAT Logistics keep production rolling no matter how complex, how many international borders, or how large your shipment is.
Contact ICAT Logistics Detroit.