How the Semiconductor Shortage has Extended to Car Part Manufacturing and Beyond

With the onset of the coronavirus pandemic at the end of 2019, the entire world saw shortages in numerous supplies. 

One of the supply chains that have been hit hardest by the pandemic is car part manufacturing. The pandemic limited the number of people available to work. And the parts used in this work were not always readily available due to shipping issues.

This perfect storm has led to a semiconductor shortage. While semiconductors are used in a variety of electronic materials and products, the semiconductor is also crucial to automotive production.

Let's break down the shortage and take a look at how the automotive industry has been so affected by this worldwide shortage.

Car Part Manufacturing Experienced Interruptions 

In 2019, a few supply chain disruptions interrupted car production.

These interruptions held up car production. The chip shortage in 2019 was not a crucial issue at the time.

However, when COVID-19 popped up in late 2019, the chip shortage that was already underway suddenly got worse. VW performance parts, Porsche performance parts, and a host of other parts were now not available.

Spare Parts Were Suddenly Not Available

As the coronavirus spread throughout the world, quarantines went into effect.

That meant that factories and businesses were locked up tightly in an attempt to slow the spread of the coronavirus. And with minimal staff working, minimal production of course resulted.

All of a sudden, some performance car parts, such as Mercedes performance parts of European aftermarket parts were not available. Semiconductors, in particular, are in high demand for use in electronics. With the onset of COVID-19, the demand for electronics rose as the ability to provide these semiconductors diminished.

Consumer Demand Changed Abruptly

The semiconductor shortage was not just affected by supply chain disruptions.

Consumer demand for vehicles lowered drastically in early 2020. As the world entered quarantine, the future remained uncertain. Many individuals were working from home at the same time, thus not needing to travel to work.

With rigorous quarantine rules in place, leisure travel also dropped drastically. All of a sudden, cars were not being purchased, and neither were performance parts.

As Demand Rose, Shortage Happened

Later in 2020, as the world adjusted to the coronavirus, the demand for vehicles began to climb once again. However, since car manufacturers drastically cut back on vehicle production, the semiconductors that were already being produced were being rerouted to electronics, such as cell phones and laptops utilized in home offices.

So as consumers were ready to purchase cars and begin traveling back to work, the semiconductors were not available for car production.

The Shortage Will Continue

The semiconductor shortage will likely continue through the end of 2021. It will take a while for car part manufacturing to be able to gather enough manpower to keep up with demand.

It will also take some time for shipping services to bounce back. But with recent advancements in coronavirus vaccines, there's hope to be had.

If you're looking for car parts, our staff is ready to assist. Contact us today.