Ag equipment manufacturer predicts another two years of supply chain issues
A global ag equipment manufacturer says supply chain challenges could last until 2024.
“I’d say from an industry perspective, we’re about halfway through it.”
Daryl Theis, head of sales and marketing with CLAAS North America, tells Brownfield supply is struggling to meet record demand. “We really see challenges on a couple of places. One is certainly electronics, whether that’s sensors or whether that’s chips. We really see that lasting another 12-18 months until new production comes online.”
And, he says, there are other factors. “Raw materials and commodity costs continue to go up. Energy costs spiked in February with the Russia/Ukraine conflict. Steel prices continue to go up as well. The commodity front isn’t helping us at all. The semiconductor chip isn’t helping us at all.”
Theis says the cost and time it takes to ship freight overseas is another factor.