Semiconductor shortages have significantly impacted the automotive supply chain according to respondents of the latest OESA Supplier Barometer.
The quarterly survey by the Original Equipment Suppliers Association (OESA) gauges automotive supplier sentiment and outlook for the quarter.
The Q2 2021 barometer index tallied at 44, down from 62 in the previous quarter marking the first subdued outlook since Q1 2020 when COVID-19 related lockdowns had brought almost all industries to a standstill, OESA indicated.
Suppliers believe that the current production shutdowns due to the semiconductor shortages could deeply affect production over the next 12 months. Still, suppliers remain confident that the strong US economy will soften the blow. Moreover, strong end-user demand and new business opportunities in the electric vehicles (EV) range is also expected to help the industry bounce back from its constraints at present, according to smaller suppliers.
However, large automotive suppliers (those with revenue of $1bn or more) remain wary about risks associated with factors such as shortages of raw material, logistics delay, and availability of labor.
In terms of sustainability goals, around 47pc of respondents said they have formalized their sustainability goals while 22pc are developing them, OESA noted.