Geopolitical Friction to Create New Supply Disruptions – State of the Fleet Industry

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February 25, 2022

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The 83rd State of the Fleet Business video produced by Automotive Fleet (AF) provides an up to date have a look at the state of the fleet market as offered by AF Editor Mike Antich.

 

🎙As we speak’s matters embrace:

The anticipated extra disruption of the provision chain on account of at present’s geopolitical points will lengthen at present’s provide chain imbalance.  The explanation at present’s state of affairs within the Ukraine is so essential is as a result of most completed metals particularly aluminum come from Russia/Ukraine and China, however extra so from Russia/Ukraine because the U.S. added tariffs on Chinese language completed supplies.If there’s a tit-for-tat escalation in sanctions, it could actually crimp the provision of aluminum. Even earlier than the Russian invasion of Ukraine, there was a 9 to 12 month order-to-delivery time for the time it takes to obtain aluminum in bulk.How will the auto business be impacted by decreased availability of metal, aluminum, and stainless?Mills are limiting who will get provide for the aim of reallocating provide to greater margin clients. Problematic or low margin clients are getting letters from the mills saying they’ll’t provide metallic. This “saved” manufacturing is being reallocated to higher-margin clients.The value of aluminum has had back-to-back will increase within the first two months of 2022. Additionally since October 2021, the worth of aluminum is 68% greater.

 

⏱ Timestamps ⏱





0:00 Intro





1:00 Disruption of Provide Chain Because of Geopolitical Points





5:18 Escalation in Sanctions





6:33 Reallocation of Provide

 

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