News

Supply Chain

Tradier | Equities.com |

Since the start of the global pandemic, historically low interest rates and government spending have inhibited saving and encouraged borrowing and spending to lift the economy during the challenging period. The US Federal Reserve and government have pumped far more liquidity into the financial system than during the 2008 global financial crisis. We have seen an increase in inflationary pressures because of the stimulus. Moreover, the pandemic’s unintended consequences have created shortages and supply chain bottlenecks that have only exacerbated rising prices.


Kimberly Redmond | Equities.com |

Nissan Motor Company will pause production at two Mexican plants for several days this month due to the ongoing shortage of semiconductor chips.

On Wednesday, Reuters reported that operations will halt for 11 days at Nissan’s plant in Aguascalientes and for 8 days at its Morelos factory.


Reuters | Equities.com |

New orders for U.S.-made goods accelerated in August, pointing to sustained strength in manufacturing even as economic growth appeared to have slowed in the third quarter because of shortages of raw materials and labor.

The Commerce Department said on Monday that factory orders increased 1.2% in August. Data for July was revised higher to show orders rising 0.7% in July instead of gaining 0.4% as previously reported. Economists polled by Reuters had forecast factory orders gaining 1.0%.


Kimberly Redmond | Equities.com |

The ongoing semiconductor shortage is now expected to cost the global automotive industry $210 billion in revenue this year, according to global consulting firm AlixPartners.

The forecast released Thursday is almost double the firm's previous projection of $110 billion made in May.


Reuters | Equities.com |

General Motors Co will reduce production at most North American assembly plants this month because of the ongoing semiconductor chip shortage, hitting its profitable truck and sport utility vehicles, it said on Thursday.

The largest U.S. automaker will halt production next week at its Fort Wayne plant in Indiana and its Silao plant in Mexico, both of which build pickup trucks. In total, GM is cutting production at eight North American assembly plants in September.


Kimberly Redmond | Equities.com |

Tesla Inc’s (Nasdaq: TSLA) chief executive officer Elon Musk said the EV maker is delaying deliveries of the new version of its Roadster sports car until 2023, at the earliest.

In a tweet Wednesday, Musk wrote, “2021 has been the year of super crazy supply chain shortages, so it wouldn’t matter if we had 17 new products, as none would ship. Assuming 2022 is not mega drama, new Roadster should ship in 2023.”


Kimberly Redmond | Equities.com |

Walmart Inc plans to hire 20,000 employees for its supply chain division to help keep merchandise moving ahead of what is expected to be a busy holiday shopping season.

In a press release Tuesday, the Bentonville, Arkansas-based retail giant, said the positions, which will be a mix of part-time and full-time jobs, will be in more than 250 Walmart and Sam’s Club distribution centers, fulfillment centers and transportation offices.


AP News | Equities.com |

Inflation at the wholesale level jumped a higher-than-expected 1% in July, matching the rise from the previous month, and dimming hopes that the upward trajectory of prices would begin to slow.

Prices at the wholesale level over the past 12 months are up a record 7.8%, the largest increase in that span of time in a series going back to 2010.


Kimberly Redmond | Equities.com |

Used car prices will likely remain high until automakers can fix production issues stemming from the ongoing global chip shortage, according to Carvana Co (NYSE: CVNA) chief executive officer Ernie Garcia.

During an appearance Friday on CNBC, Garcia said while sales volume for used cars “is pretty consistent with 2019,” there are “so many fewer new cars being manufactured and that’s pushing prices up.”


Reuters | Equities.com |

New orders for U.S.-made goods increased more than expected in June, while business spending on equipment was solid, pointing to sustained strength in manufacturing even as spending is shifting away from goods to services.

The Commerce Department said on Tuesday that factory orders rose 1.5% in June after advancing 2.3% in May. Economists polled by Reuters had forecast factory orders increasing 1.0%.

Orders soared 18.4% on a year-on-...