Semiconductor storm
Covid 19 pandemic created massive changes in the supply chains all over the world. While communications, electronics and internet related industries surged, the automotive sector saw first a decline and then a faster then expected recovery.
This unforecasted evolution put a high pressure on the chip manufacturing industry. With two giants in Asia and a few others in the rest of the world, the market is basically an oligopoly. Demand rose fast and the manufacturers failed to keep the pace, putting the automotive industry in difficulty.
More and more carmakers are announcing temporary production interruption, especially at European plants.
Future is bright and far
In order to solve the semiconductor chip crisis, the European Union plans to set up a semiconductor alliance between STMicroelectronics, NXP, Infineon and ASML to cut dependence on foreign chipmakers according to Reuters.
The move will have a huge impact in the future, the ambitious goal being to produce 20% of chips inside the EU, by the end of 2030.
Also, the United States has already roll-out a $37billion plan to boost the American superconductor industry.
Although the long term situation seems to be brighter, the current situation is very difficult.
Logistic focus
Automotive companies are struggling to overcome the supply fluctuation. Every shortage of components is impacting the production flow, putting pressure on the logistic systems.
While stopping production means also cutting the transport needs for a short term, restarting means unpredictable emergency transport needs.
All the automotive parts manufacturers will be affected by the high volatility of demand, since the industry is based on lean principles and low stocks.
During the following period, time critical automotive logistics will face turbulent movements, from low demand to overwhelming orders.
This fluctuation requires flexible and reliable logistic companies, ready to face the challenges.
Transport solutions will need to be offered in a very short time, with high accuracy, at any place required.