How to stay ready when there’s a shortage of vans and LVC’s
Availability of vans and LCV’s seem to be a major issue at present, which while the demand is positive to see but just what are the real reasons for the lack of van and LCV availability in the Irish market?
Pandemic? Check ✔
Shortage of semiconductors? Check ✔
Brexit? Check ✔
We first encountered the issue of van shortages in Ireland when one of our customers, an electrician, went to local dealer to order a new commercial van. It’s important to note here, there was nothing out of the ordinary in add-ons or extras. From date of order to date of delivery, he was looking at 8 months at least! The salesman couldn’t explain precisely what the holdup was, “just a delay in production across the board.” And furthermore, it has been noted that some dealers are saying customers could face up to 12 months for delivery of a new van.
So what is the real hold up?
Supply chains have been completely disrupted as well as restrictions surrounding trade due to Covid-19. Transportation manufacturers rely on the supply of parts from across the globe, so naturally enough, production of parts and vehicles were halted somewhat.
All throughout the pandemic, we saw a rise in demand for electronics. More people working remotely, students home-schooling and the need for communication amongst families through distance. The production of semiconductors seemed to fill this growth area and left the transportation industry high and dry as a result. Chips are becoming more important to car/van makers due to higher use of on board computerisation. This is where preparation is key, have your ducks in a row.
Throw Brexit in to the mix and we got ourselves more delays. Uncertainty around trade arrangements impacted the disruption to supply of these vehicles. According to Joseph Ferguson of VW Van Centre, “Low supply of secondhand vehicles from the UK has caused an increased demand in new vans in Ireland”.
When we asked our customer how external factors would impact his business, his reply was refreshing. “Throughout the pandemic, my business was initially impacted until certain trades were allowed to fully resume and were recognised as essential. I helped customers diagnose simple issues at home virtually. But the pandemic taught me to ‘stay ready’, if that makes sense.” When asked specifically about the delays with his van, he said “Look, there isn’t a lot I can do about the delay but what I did do was take care of financing my new van as soon as I could. I arranged the van finance, placed my order and I’m ready to rock if it becomes available sooner.”
One positive example of assisting customers through the wait is a service arrangement similar to VW Van Centre North Dublin. As Joe Ferguson explained, “Particularly successful with return customers, we put a service arrangement in place to maintain and carry out repairs on their vehicle until their new van arrives in January. They get reassurance from their current van and we know we’re taking in a well maintained vehicle”.
So be as clever as the sparky above, arrange your van lease or finance through Capitalflow and avoid any further delays to your business.