Your car needs a new part but you’ve driven into an autobody shop and now you have to wait months due to back orders and supply issues; but, why?

As you may be aware, or are about to be made aware, the auto industry throughout Texas and the entirety of the United States is experiencing parts shortages and back orders. There are many reasons for this that have occurred since 2020, all amounting to a crisis in the industry. But it’s not just the automotive industry affected. For example, computers have also been massively affected by this epidemic in parts shortages.

But we’re here to explain why this is with the 4 problems we’re currently facing:

1. Problem 1: Access to Raw Materials Has Decreased

Neon is a key material required for many components, especially the silicone chips needed to automate car processes. However, access to neon is becoming increasingly difficult as the majority can be mined throughout Ukraine. Unfortunately, as Ukraine battles for freedom, neon exhumation has deflated and parts shortages have come into effect.

In addition, lithium - an essential part of car batteries - is sourced and manufactured in China. However, due to the pandemic, China is imposing strong restrictions on working in many regions. With this, supply is short and prices have increased making it ever-more difficult to access. Luckily, a new Quebec discovery means lithium can now be accessed and distributed solely throughout America. So, we should see lithium-based back orders reducing in the near future.

1. Problem 2: Manufacturers Have Halted Production Due to Covid

Covid has halted many aspects of life and everyone has experienced the pandemic in their own way. This includes the variety of countries who have experienced the spread of the virus, too. China, for one, has had far stricter rules regarding infections. Because of this, many key plants in the automobile supply chain have halted production and the parts are simply no longer on the market.

Parts shortages are not the only problem; workforce shortages have also led to the increased back orders we’re seeing. Mexico is one of the largest export of manufacturers in the automotive industry (for the world). But - according to The Mexican National Institute of Statistics and Geography - production declined by 20.25% in 2021 due to Covid. So, now, we’re seeing the knock-on effects from back orders way back then.

1. Problem 3: Many Parts Are Being Held at Shipping Ports

As the Russo-Ukrainian war continues, many exports have been held-up in Ukrainian ports. While the most impactful export affecting the world is their grain, they also have many raw materials and parts for the auto industry held up. This is then causing parts shortages - especially in neon elements and electronic components.

1. Problem 4: Demand to Replace Parts Follows an Increase in Thefts

The theft of car parts can be a lucrative industry. This is because components such as catalytic converters can be easily accessed. Then, they're broken down by their materials (palladium, platinum and rhodium) and sold to fetch a good sum on the black market. And, this has become a bigger issue than ever in the past couple of years.

The result of these thefts means more cars are rolling into autobody shops looking for parts than there are parts on the right market. So, there are now back orders for expensive catalytic converters in addition to the parts shortages following major global events.

Luckily, there are some things that can be done to reduce the theft of your car’s valuable parts. For example, attaching steel cages and metal sheets or simply spray painting them bright colors.

To learn more about our services and expertise (when parts shortages and back orders aren’t an issue) view the Dealership Autoplex Collision Center website. Alternatively, call our team on (972) 242-0092 or visit the shop here in Carrollton, TX.

Link to:

“Replacing the Stolen Catalytic Converters in Texas”

Link to:

“Your Right to Choose Your Collision Center in the US”

Link to:

“The Value of I-CAR Technicians by the 8 Learning Paths”