HVIA concern at lack of parts due to Covid-19 pandemic


Industry peak body backs Productivity Commission’s supply chain probe

HVIA concern at lack of parts due to Covid-19 pandemic
Todd Hacking

 

Heavy Vehicle Industry Australia (HVIA) is underlining the importance of and looking to support the Productivity Commission’s examination of supply chain weaknesses.

The organisation notes that supply chain resilience and its systemic vulnerability have been badly exposed by the challenges posed during the Covid-19 pandemic. 

The Productivity Commission is undertaking a Vulnerable Supply Chains review with an interim report expected late this month. 

The commission will be taking written submissions on the interim report until April 30, before producing its final report. 

Though the problem is seen as an international one, HVIA believes the commission’s focus on local issues is "appropriate and timely". 

"It is verging on calamitous when truck manufacturers are forced to park up brand new vehicles because a minor part has been held up by supply chain issues," HVIA chief executive Todd Hacking says. 

"We know that virtually every importer has been seriously affected, whether it is vehicles, components, parts, accessories or technology – everyone." 

"We hear their frustration: interminable delays, the impost on air freight, the hold-ups through quarantining; we appreciate these issues have a devastating impact on your customers' ability to do business and also your bottom line." 


Read about industry achievers who gained HVIA recognition, here


"We are seeking further information from HVIA members to inform our submission to the inquiry," Hacking adds. 

"We need detail of the types of problems members have encountered, to ensure that the Productivity Commission has a clear understanding of the issues that need to be addressed. 

"Since the Covid virus started, we have had numerous anecdotal reports of problems with the supply chain for heavy vehicles and components entering Australia. 

"Australian industry resilience became a hot topic very quickly this time last year, however the irony of our very lively market conditions, offset by managing delivery expectations, was not fully realised." 

The Vulnerable Supply Chains review details can be found here.

 

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