The 83rd State of the Fleet Industry video produced by Automotive Fleet offers an updated look at the state of the fleet market as presented by AF Editor Mike Antich.
🎙 Today's topics include:
- The anticipated additional disruption of the supply chain due to today’s geopolitical issues will extend today’s supply chain imbalance.
- The reason today’s situation in Ukraine is so important is because most finished metals especially aluminum come from Russia/Ukraine and China, but more so from Russia/Ukraine since the U.S. added tariffs on Chinese finished materials.
- If there is a tit-for-tat escalation in sanctions, it can crimp the supply of aluminum. Even before the Russian invasion of Ukraine, there was a 9 to 12-month order-to-delivery time for the time it takes to receive aluminum in bulk.
- How will the auto industry be impacted by the reduced availability of steel, aluminum, and stainless?
- Mills are limiting who gets supply for the purpose of reallocating supply to higher-margin customers. Problematic or low-margin customers are getting letters from the mills saying they can’t supply metal. This “saved” production is being reallocated to higher-margin customers.
- The price of aluminum has had back-to-back increases in the first two months of 2022. Also since October 2021, the price of aluminum is 68% higher.