The Friday Report: December 3, 2021

Carmakers Rethink Production Strategies Due To Global Chip Shortages 

Automakers are having to get innovative to cope with the international scarcity of semiconductors. Due to the increase demand of consumer electronics during the pandemic, this has affected the auto industry due to the fact vital components are missing. Manufacturers including Daimler and Volkswagen have had to rethink manufacturing strategies. Carmakers are taking the time to have strategic partnerships with manufacturers during this shortage.  

Vehicle developers are providing their support to help manufacturers manage the chip shortage. Volkswagen’s CFO Annette Danielski announced the company was trying to clear space on the motherboards of control systems. “If we change the software, we can use fewer semiconductors and achieve the same functionality,” she said.  

General Motors are working closely with chip manufacturers such as Qualcomm, STM, and Infineon to develop microcontrollers controlled by individual chips.  

Carmakers are stockpiling as a strategy due to the chip shortage. Automakers will build the whole car except for a missing part, and can then be completed later.  

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Low Pay And Poor Conditions Truckers Are Facing 

A big issue the trucking industry is facing is retention and inefficiency. Truck drivers are facing low pay which is leading to a higher turnover rate due to the low wages and long hours. There is a lot of inefficiency of how truckers are being used at the ports due to the shortage of workers at the ports.  

Truckers are paid by the load and are not considered traditional employees. Truckers are not being paid overtime.  

Ports are now imposing fines on companies that have left cargo containers on docks for too long. This inefficiency has been addressed and has been successful so far.  

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Stopping The Future Food Crisis In American Cities 

Bowery Farms is the largest vertical farm company in the United States that providing fresh produce for an urban environment that is more efficient and sustainable. Bowery Farms build farms close to communities cutting down on food miles. The New York metro area is one of those communities and is now expanding to Bethlehem, Pennsylvania. 

Competitor Square Root have products that are more scalable since their farms use recycled shipping containers. Bowery Farms, Aerofarms, and Square Root have not been affected by the current supply chain crisis. Vertical farming businesses complete every process of farming themselves such as seeding, growing, and processing.  

Vertical farming allows consumers to have immediate access to produce, pesticides are not needed, and crops are sheltered from extreme weather. Vertical farming uses 95 percent less water than conventional farming methods supporting water conservation. Although vertical farming efforts saves water and help keep people fed, these produces are expensive. Millions are American cannot afford produce that has a premium price that are not targeted to low-income communities. According to a study from Cabridge University, vertical farming is in a city’s wealthier communities than poorer ones.  

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