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How Do Labor Constraints Effect Truck Assembly?

How Do Labor Constaints Effect Truck Assembly Title-1

The trucking industry has responded to the changes brought on by COVID-19. However, labor shortages have hit industries all around the world, disrupting the supply chain in the process. Part shortages, higher transportation costs, and overall shipping delays result from labor shortages in the trucking business.

Labor Shortage Impact

Part Shortage

Due to labor shortages, the number of parts required for the assembly of heavy-duty trucks has dropped significantly. Companies have struggled to produce key parts, such as microchips, that are shipped off to other companies for further truck production. Demand for truck production is increasing even as truck parts are still being assembled and shipped to finish production. Due to labor constraints, producing and shipping products on time has become increasingly challenging.

Increased Transportation Cost

The cost of transportation increases as the demand for freight grows and the number of labor available decreases. Transportation prices have gone up, making it more difficult for businesses to ship product on time, as it is more expensive and inefficient than delivering products in bulk. The assembly and production of heavy-duty trucks has been considerably reduced as a result of significant product delays, making it difficult to bring new trucks to market and, as a result, raising the price of used vehicles.

Managing Supply Chain Disruptions

Shipping Delays

In the trucking industry, shipping items out with labor constraints has become increasingly difficult. With labor decreasing and shipping prices increasing, it has been difficult to get product out on time. Product delays cause supply chain disruptions because companies do not have the products they need to complete their projects.

Getting your supply chain back on track is difficult and stressful. Industries around the world are trying to mitigate their supply chain amidst the COVD-19 pandemic. At NewStream our experts provide comprehensive supply chain management that is reliable and flexible to fit your teams needs. Our location provides an advantage, centrally located for nation-wide delivery within 1-3 business days, helping with shipping and transportation costs. NewStream is here to help reduce your stress so that you can love your supply chain again.

Want to start loving your supply chain - NewStream

Ready to fall back in love with your supply chain? Contact us today!

Tagged: Supply Chain Management, Assembly and Sub-Assembly

Mar 8, 2022 3:05:57 PM

Written by Rhiannon Garber

Rhiannon Garber is currently the Marketing Assistant at NewStream Enterprises, LLC. She graduated from Missouri State University with a Bachelor of Science degree in Film and Media Studies with a minor in English. In her role, Rhiannon will be responsible for assisting and collaborating with all members of the Marketing team in all functional areas of Sales & Marketing in order to support NewStream's sales growth goals