Article in today’s paper What rubber shortage? SC manufacturers say raw material supplies sufficient. By David Wren dw...@postandcourier.com Published Sun Apr 25, 2021 3:00 PM EDT It's supposed to be the biggest supply-chain crisis for manufacturers since the global chip shortage, but dwindling supplies of rubber haven't yet hit South Carolina's automakers and tire producers.
"We do not see a widespread shortage, however, as with all things these days, shipments will occasionally be delayed at borders, likely due to COVID-19 regulations," said Kathryn Blackwell, vice president of communications for Continental Tire, which has its Americas region headquarters in Lancaster County. "There are natural ebbs and flows with this commodity, but short-term no major shortages," Blackwell said. Numerous news reports in recent weeks have sounded the alarm about shortages of natural rubber grown in places like Southeast Asia. In addition to supply chain bottlenecks, flooding and tree disease are contributing to the low volumes and high shipping costs. Pandemic-related factory shutdowns last year meant growers lost money on the 2020 harvest and didn't have the capital to plant new trees or care for mature crops, according to Rubber & Plastics News. "(I'm) worried about supply," Ryan Wiener, global head of sustainable development and strategic marketing for rubber grower Corrie MacColl Ltd., told the news outlet. "Years of low prices have allowed demand to outpace growth in supply, and it's time the world realizes that the material, which is so vital in powering humanity's mobility, is scarce." The rubber shortage has yet to hit the road in the Palmetto State, where vehicles and tires are among the top export commodities. "We are continuing to monitor the situation closely and do not foresee any impacts to our supply at this time," said Emily Weaver, spokeswoman for Bridgestone Americas, which makes tires in Aiken County. "Our team will continue to monitor this situation and maintain open lines of communication with all of our key stakeholders to ensure adequate supply and overall business continuity." The story is the same for the state's automakers, which rely on rubber supplies for many of their components. "So far, our plant has not been impacted from the rubber shortage," said Steve Wilson, spokesman for the BMW Manufacturing plant in Spartanburg County, the German company's largest factory in the world. The Volvo campus in Berkley County, where S60 sedans are built, also isn't feeling stretched. "To date, we have not been impacted by rubber-related supply shortages," spokeswoman Stephanie Mangini said. Meanwhile, reports indicate the situation could get worse before rubber crops rebound. "It's definitely tightening up," Ann Marie Uetz, a Detroit-based partner at Foley and Lardner, a law firm that represents auto parts manufacturers, told Bloomberg News. "It's nowhere near the level of the chip shortage from our perspective so far, but it's definitely brewing." --FT Sent from iPhone _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
