Supply Chain Issues Hit Local Auto Body Repair Shops
CHATTANOOGA (WDEF) – “People come in to get their car fixed and we tell them it’s going to be awhile until we get the parts,” says Justin Thomas who is a mechanic at Econo Auto Painting and Body Shop.
Supply chain and production issues in the automobile industry have impacted everything from car repairs to car inventory. Consumer Reports just reported the average price of a new car is $46,000. They say traditionally inexpensive cars, like Kia and Hyundai, are being priced up to 18 percent above their MSRP.
“If you go back to one of the major causes of the supply chain crisis that we’re having, and I don’t think that’s over stating it, it’s the lack of semi-conductors. This is stopping car companies and truck makers from building vehicles to completion,” says Alan Adler who is the Detroit bureau chief with Freightwaves.
And it’s impacting local buyers and businesses alike. “There’s been days I’ve had to go home earlier at 9 o’clock as soon as I get here because there’s no cars. There’s no parts,” says Thomas.
What started with a new-car semi-conductor shortage due to factory shut downs has trickled it’s way down to a strapped car repair industry.
“It’s created a real problem for production of new vehicles and that in turn has driven up the price of used cars and it’s created a backlog I imagine in the service shops,” says Adler. Adler says semi-conductors are used in many products, not just new cars. He says Intel has a plan to build a $20 billion semi-conductor factory in Ohio.