Supplyframe Consumer Research Highlights Changing Car Buying Behaviors and Consumer Sentiment About the Automotive Industry | national


PASADENA, Calif.–(BUSINESS WIRE)–February 24, 2022–

power frame research released today indicates that most consumers expect the negative fallout from pandemic-fueled supply chain shortages to continue through 2022. That same research shows that the limited supply of vehicles due to of a lack of available semiconductors and electronic components has damaged the reputation of the auto industry and led to a shift in customer buying behaviors that has prompted some U.S. consumers to buy used cars rather than new cars – or not to buy any vehicles at all.

The research is based on a recent survey, conducted by Propeller Research on behalf of Supplyframe, of more than 1,000 US consumers ages 18 and older. According to the survey results, nearly a third (32%) of US consumers said they had been affected by the shortage of automotive chips. Almost half (48.3%) said the resulting lack of car inventory led them to buy a used car rather than a new one. About the same number (48.5%) said they had noticed an increase in automobile prices amid the pandemic, and more than a fifth (21.8%) said the inflated prices had deterred them from driving. ‘to buy a car.

“Due to the pandemic, the automotive industry has faced production challenges as well as a changing consumer mindset, as this research highlights,” said Supplyframe CEO and Founder Steve Flagg. . “But even beyond the pandemic, the automotive sector will continue to compete with companies in other industries such as aerospace, consumer electronics and medical devices for dwindling supply of semiconductors and electronic components. . Having multiple industries sourcing from a shared supply will lead to complications, even in the long run. Automakers and companies in these other sectors must now consider how to better manage chip shortages to meet customer demand and enable faster distribution.

A high proportion of US consumers are now aware of the global chip shortage and its impacts

Chip shortages have been in the headlines since the start of 2020. So while discussions of the semiconductor and electronics component supply chain have traditionally been reserved for professionals designing and sourcing new products in manufacturing companies, the lingering pain caused by shortages of automobiles and chips have heightened consumer awareness of these issues. Questions.

Nearly half (47.5%) of consumers said they were aware of the automotive chip shortage. And nearly a third (32%) of respondents said they had been impacted by the chip shortage. Only 12.9% of US consumers believe we will finally return to normal shipping and production times this year. Just over 40% believe shortages will slowly ease in 2022. And almost half (46.7%) said they believe shortages will continue throughout 2022.

However, while analysts predicted that shortages would reach a turning point this year, that does not appear to be the case. The recent from Supplyframe product IQ The report says global manufacturers can expect severe supply constraints and cost inflation pressure for many component categories through 2023. And that, in turn, is expected to continue to have an impact on consumers.

Many new or potential new automobile owners are headed in a different direction

The limited availability of new vehicles due to chip shortages and other supply chain issues has forced some frustrated consumers to abandon the idea of ​​getting a new vehicle. Nearly half (48.3%) of consumers said they purchased a used car instead of a new one due to a lack of inventory. About the same proportion (48.5%) said they had noticed an increase in automobile prices since the start of the pandemic. More than a third (39.1%) said inflated vehicle prices forced them to save more before buying a car. And more than a fifth of U.S. consumers surveyed said inflated vehicle prices deter them from buying a car.

Automotive chip shortages and gasoline prices are also prompting more and more consumers to consider buying electric vehicles. Nearly a quarter (23.1%) of US consumers surveyed said they had seriously considered buying an electric vehicle in the past year. More than a fifth (20.8%) said their main reason for considering an electric vehicle was the shortage of automotive chips. Nearly 60% (59.7%) said their consideration for an electric car was primarily driven by high gasoline prices.

As electric vehicles have become more important, global manufacturers are now trying to enter the field mainly dominated by Tesla. But for major automakers to make their mark in electric vehicles, they must learn from Tesla’s playbook and strive to build a more resilient supply chain and use technology in real time to better anticipate demand.

The reputation of the auto industry is taking a hit, but there are solutions to move forward

Supply chain shortages do little to bolster auto sales or the reputation of the auto industry. In fact, they do quite the opposite. Shortage of semiconductor chips expected to cost global auto industry $210 billion in revenue in 2021, according to consulting firm AlixPartners. And nearly a third of U.S. consumers polled by Propeller and Supplyframe expressed frustration or pessimism about the auto industry.

It’s just another pain point the automotive sector now faces as it struggles to regain its footing after more than a year and a half of chip shortages, fewer cars being made as a result, prices and a record vehicle demand, and added labor and logistics constraints.

This underscores the need for the automotive sector – and industries at all levels – to become smarter when it comes to supply chains. This will require public-private partnerships to share market intelligence and identify early signs of future shortages to prevent further shortages of this magnitude.

“Shifting demand, pre-existing supply and supply issues, and the ongoing pandemic underscore the need for external intelligence on global supply chains and the value of designing resilience into products,” Flagg said. “Major original equipment manufacturers in the automotive industry and beyond are beginning to take steps to ensure this happens sooner rather than later.”

About Supplyframe

Supplyframe’s unrivaled industrial ecosystem and pioneering Design-to-Source Intelligence (DSI) solutions are transforming the way people and businesses design, source, market and sell products across the global value chain of supply. ‘electronic. Leveraging billions of continuous signals of design intent, demand, supply, and risk factors, Supplyframe’s DSI platform is the world’s richest intelligence resource for the electronics industry. More than 10 million engineering and supply chain professionals worldwide use our SaaS solutions, search engines and multimedia properties to drive rapid innovation and optimize over $120 billion in annual spend directly in materials. Supplyframe is headquartered in Pasadena, CA, with offices in Austin, Belgrade, Grenoble, Oxford, San Francisco, Shanghai, and Shenzhen. To join the Supplyframe community, visit supplyframe.com and follow us on Twitter, instagramand Youtube.

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CONTACT: Kimberly Barnes

kimberly@bospar.com

440-506-2177

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: AUTOMOTIVE TECHNOLOGY GENERAL CONSUMER AUTOMOTIVE OTHER SEMICONDUCTOR MANUFACTURING ENGINEERING TRANSPORTATION LOGISTICS/SUPPLY CHAIN ​​MANUFACTURING SOFTWARE MANUFACTURING DISTRIBUTION OTHER CONSUMER MATERIALS ELECTRONICS DESIGN AUTOMATION DATA MANAGEMENT SUPPLY CHAIN ​​MANAGEMENT

SOURCE: Procurement Framework

Copyright BusinessWire 2022.

PUBLISHED: 02/24/2022 09:00 AM / DISK: 02/24/2022 09:02 AM

http://www.businesswire.com/news/home/20220224005088/en

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