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Posted on August 4, 2021 in Firm News
The world today has so many unknown variables. The virus has changed the world that we use to know. Items in stores were easily found unless there was a weather emergency. Due to the virus items big or small can be hard to find. One industry that has been affected is the car dealerships.
Individuals need vehicles and in a non-virus world it was easy to venture to a dealership and have a decent size selection of vehicles to choose from. This is not true as of late. The car dealerships have a demand for all types of vehicles but the supply on the lot is decreasing significantly. This is due to a shortage of a computer chip that is within each car. The shortage of this small but significant piece in every vehicle is holding up the production of vehicles. When the pandemic started the factories making these computer chips were forced to shut down. Now that production is starting to pick back up, it has been a slow process getting the computer chips out and in production. There is a high demand, and the companies are either having a hard time getting material for the chips or cannot produce the computer chips fast enough.
Even with everything slowly getting back to the “normal” production levels, it will take time before companies can see the supply and demand curve equal out.