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.
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.
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