Increased Commodity Prices & Lead Times Forecast for 2023
How are commodity markets expected to affect fleets in the 2023 calendar year?
In a recent interview with Automotive Fleet Magazine, a commodity expert shared his forecast for the 2023 calendar year and provided some great insight. The automotive industry is currently experiencing finished product deficits due to skilled labor shortages, while steel and aluminum prices have stabilized.
Aluminum is expected to receive a double jab, as supply shortages combined with increased demand are expected to continue. This will likely impact automotive-grade aluminum, commonly used to manufacture new and replacement automotive parts.
Copper prices are forecasted to rise due to increased demand. Copper is widely used in automotive parts for electronics and wiring. Newer
vehicles have more electronics and wiring than ever, so copper is an increasingly important commodity for the industry. Electric vehicle vehicles (EVs) and their infrastructure and charging stations tend to use a greater amount of copper than their internal combustion counterparts.
Forecasted shortages, and the increased prices, of these commodities, may impact fleets downstream through higher parts prices and increased downtime due to shortages of replacement parts.
Enterprise Fleet Management can help your fleet with these expected increases by reviewing the costs of individual repairs and working with our industry partners to keep your fleet operating in a cost-efficient manner. Contact us if you have questions about your fleet.
Article Sources: https://www.globalfleetmanagement.com