Challenges Facing the Auto Industry Post-Pandemic
7 Sep 2021
With so much velocity in the industrial market, it is hard to imagine that a lack of labor, materials, and available real estate could slow down this momentum — specifically, at a time when there is unprecedented demand for new passenger and fleet vehicles. Can you remember the last time your local car dealership or car rental company had little to no inventory?
The disruption of the pandemic impacted nearly every facet of the automotive supply chain, causing a significant impact on how new projects are being developed and implemented. BDO’s annual 2021 Manufacturing CFO Outlook Survey showed that the number-one factor most critical to the recovery of the manufacturing industry is supply chain stability. Furthermore, CFOs surveyed indicated that 50 percent had plans to identify alternative or backup suppliers as a result of the supply chain disruption seen during the pandemic, with another 22 percent planning to reshore facilities to the United States.