Linamar cites supply chain pinch in Q2 update
- July 12, 2021
The manufacturer’s Q2 update takes the supply chain issues into account and revises previous forecasts to reflect this.
Its global light vehicle production forecast has decreased by 1.65M units versus the prior forecast, with the majority of the decline being in North America. Linamar’s 2021 forecast was revised down by 1.01M units.
The company says volume reductions were primarily due to the ongoing global semiconductor chip shortage, which Linamar describes as “a fluid and unpredictable situation”
However the company’s combine retails are up 18 per cent, even after adjustments caused by the negative impacts of supply chain commodity prices, logistic costs and product availability.
Access May Q2 QTD (two months) Global market up 2.5x prior year, driven primarily by Asia.
Both businesses constrained in ability to meet market demand due to supply chain issues
“Significant supply chain constraints are impacting our ability to ship to meet market demand as well as costs in terms of both commodity pricing and logistics,” the company said in its report, adding that these constraints are primarily impacting the industrial segment.
Linamar Corporation is an advanced manufacturing company made up of two operating segments – the Industrial segment and the Mobility segment. The Industrial segment is comprised of Skyjack , which manufactures scissor, boom and telehandler lifts for the aerial work platform industry, and MacDon, which manufactures combine draper headers and self-propelled windrowers for the agricultural harvesting industry.