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'Desperate for tires.' Components shortage roils U.S. harvest

Scorpio

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'Desperate for tires.' Components shortage roils U.S. harvest​

Ag components shortage roils farm sector, equipment makers during harvest

Ag components shortage roils farm sector, equipment makers during harvest

Ag components shortage roils farm sector, equipment makers during harvest

Ag components shortage roils farm sector, equipment makers during harvest

Ag components shortage roils farm sector, equipment makers during harvest

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'Desperate for tires.' Components shortage roils U.S. harvest​

Ag components shortage roils farm sector, equipment makers during harvest


By P.J. Huffstutter and Mark Weinraub
CHICAGO (Reuters) - Dale Hadden cannot find any spare tires for his combine harvester. So the Illinois farmer told his harvest crew to avoid driving on the sides of roads this autumn to avoid metal scraps that could shred tires.
New Ag Supply in Kansas is pleading with customers to order parts now for spring planting. And in Iowa, farmer Cordt Holub is locking up his machinery inside his barn each night, after thieves stole hard-to-find tractor parts from a local Deere & Co dealership.

"You try to baby your equipment, but we're all at the mercy of luck right now," said Holub, a fourth-generation corn and soybean farmer in Buckingham, Iowa.
Manufacturing meltdowns are hitting the U.S. heartland, as the semiconductor shortages that have plagued equipment makers for months expand into other components. Supply chain woes now pose a threat to the U.S. food supply and farmers' ability to get crops out of fields.
Farmers say they are scrambling to find workarounds when their machinery breaks, tracking down local welders and mechanics. Growers looking to buy tractors and combines online are asking for close-up photos of the machine's tires, because replacements are expensive and difficult to find, said Greg Peterson, founder of the Machinery Pete website which hosts farm equipment auctions.
"As harvest ends, we will see farmers at equipment auctions not for the machinery - but for parts," Peterson said. "We're already hearing from guys talking about buying a second planter or sprayer, just for parts."
For some farmers, the shortages are forcing them to reuse - or repair - old parts.
At their small welding shop in western Washington, Rami and Bob Warburton can barely keep up with all the orders from farmers needing something repaired from fittings for irrigation systems to a cracked bulldozer bucket.
"We were in the middle of a drought up here," Rami Warburton said. "At that time, they couldn't wait to water their fields for a month. The crops will be dead by then."
'TYLENOL MOMENTS'
Kinks in the supply chain due to COVID-19 shutdowns in manufacturing hubs in the United States and Asia, a container shortage snarling major ports, and a dearth of workers prevent equipment manufacturers from fully cashing in on a lucrative moment, when grain prices have soared to the highest in nearly a decade.
The Purdue University/CME Group Ag Economy Barometer, a monthly measure of farmer economic sentiment, fell 10% to its lowest level since July 2020 in early October. Supply concerns are weighing heavily on growers, with 55% of farmers surveyed saying that low inventories have affected their plans to buy machinery.
Access to steel, plastic, rubber and other raw materials has been scarce during the pandemic, and manufacturers are preparing for even more shocks after power shortages forced several Chinese smelters to cut production in recent weeks.
When executives from farm machinery maker AGCO Corp visited Midwest suppliers this summer, they found some companies were operating at only 60% staffing levels, said Greg Toornman, who oversees AGCO’s global supply chain management.
Toornman said staff levels are dropping at some suppliers in the Dakotas, Nebraska and Texas, as workers object to President Joe Biden's vaccine mandate, drop out of the workforce for fear of getting COVID-19 or move to other jobs.
"It's the perfect storm of Tylenol moments," Toornman said. "It's one headache after another."
The supply squeeze has put particular pressure on equipment dealerships, who typically see their service business boom during the traditional September through November harvest season.
This year, some have resorted to sifting through decade-old inventory for solutions. One pain point for dealerships is an industry-wide shortage of GPS receivers, which are used to run tractor guidance and data systems.
At Ag-Pro, the largest privately-owned Deere & Co dealership in North America, staff in Ohio have been digging out GPS units that date back to 2004. Until now, they were essentially worthless.
But producers can still use them to record a digital harvest map of their farms – something many need when talking to their bankers, landlords and crop insurance agents.
COMPONENTS TRIAGE
Equipment manufacturers are faced with a painful choice this harvest season: Send parts to factories to build new tractors and combines to sell to farmers or redirect those parts into the field to repair broken equipment for existing customers?
For AGCO and rival manufacturer CNH Industrial N.V., the answer is the latter.
"You can't afford not to support those customers in the field," AGCO's Toornman said. "When you're harvesting, timing is everything."
CNH estimates that supply chain constraints ranging from increases in freight to higher raw materials prices have cost the company $1 billion.
That lag has forced the company to turn some factory parking lots into storage lots. At CNH's combine plant in Grand Island, Nebraska, hundreds of unfinished combines sit outside, waiting for parts.
Meanwhile, CNH is redirecting components that can be used on its Case IH and New Holland equipment to customers in the field, a company representative said.
CNH has been signaling to dealers that supply chain problems and parts shortages for Case IH farm equipment are ongoing, according to Reuters interviews with six dealers. The manufacturer said in a statement it is meeting customer needs "the best we can given these unprecedented challenges."
Deere said it is reorganizing shipping containers to make more room for goods, leasing extra cranes to expedite unloading ships at ports, and expanding its trucking fleet.
But component shortages are "particularly challenging for farmers facing what is already a short window of time to harvest," said Luke Gakstatter, senior vice president of Deere's aftermarket and customer support.
In some cases, the company has delivered unfinished machinery to customers. Missouri farmer Andy Kapp's brand new combine rolled off the assembly line missing some of the high-tech cameras that help provide the very efficiency he paid hundreds of thousands of dollars for.
But he is using it anyway, and even has stocked up on some extra parts, in case the combine breaks down.
"As you get toward the end of harvest, machinery and people get more tired," Kapp said. "It's a new machine. It won't surprise us if there are a few loose bolts."


(Reporting By P.J. Huffstutter and Mark Weinraub in Chicago; additional reporting by Dane Rhys in Monroeville, Ohio; Editing by Caroline Stauffer and Marguerita Choy)

 

the_shootist

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Oh yeah, the dreaded tire shortage will be why farms will stop producing and why little Johnny won't be getting three squares a day. Damn tire workers!

Who believes this bovine excrement?
 

Buck

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if it isn't a lack of inventory, it'll be 'inflation'.......

or maybe perhaps thieves, maybe a drought...or too much rain

it could be with the truckers and transportation...or the energy supplies are low

voter disapproval or sheer profit taking...a bean with a toaster or a chief with a toyota


it's gotta be something
 

Scorpio

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parts and availability are a issue guys,

not everything is bullchit,
agreed their articles are wrote by 2 years olds, but the point remains, there are supply chain issues everywhere,
 

the_shootist

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parts and availability are a issue guys,

not everything is bullchit,
agreed their articles are wrote by 2 years olds, but the point remains, there are supply chain issues everywhere,
no argument! My point was it's not just tires that will be shorted and, to your point, the article sucked!
 

Buck

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but how many of John Deere's problems could have been resolved if they had only allowed their customers to fix their own machines?

put the focus on inventory instead of the almighty Service Dollar.....

what issues, from the distributors to the dealers are left out of this story?

...yeah, that photo of that 'poor farmer', he sure looks all beat up...perhaps he's waiting on that tire patch glue to dry...


stories like this paint a very twisted, one sided picture that distorts reality to the point, i'm supposed to 'feel something'


anymore, i wish i could
 

Buck

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we've got to remember: many / plenty of these major corporations KNEW WHAT WAS COMING

the oil companies did, tires and all plastics knew, they knew 10-20 years ago...electrical companies knew, politicians knew, professional sports knew


they knew this was coming.......


hell, we knew
 

Scorpio

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stories like this paint a very twisted, one sided picture that distorts reality to the point, i'm supposed to 'feel something'

all fine until there is no food on your table, but by all means, keep jammin' up the real farmers,

rather than the .corps and mega Ag along with .gov

contrary to what you would state, there are a lot of good farmers doing their thing and getting jabbed on all of this bs
 

Buck

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all fine until there is no food on your table, but by all means, keep jammin' up the real farmers,

rather than the .corps and mega Ag along with .gov

contrary to what you would state, there are a lot of good farmers doing their thing and getting jabbed on all of this bs
you really think this is a story on farmers?

it's a story about Fear, Brother

it's not about Farmers

like most stories we're fed these days, it's propaganda

the farmers are hurting, certainly, but who isn't?
 

DodgebyDave

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I just bought tires, it took two weeks to get them.

I just plunked down cash for a new Kubota engine. It will be 6-8 weeks before it gets here

Hell. I could make a new one from scratch by then including tooling the foundry......................................

Could it be the Dims have done more than ever to bring back manufacturing?

Only if they die doing it!
 

Scorpio

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Could it be the Dims have done more than ever to bring back manufacturing?

been actually wondering about this,
started under tramp and continuing on thru to today,

yet then I have to ask why do all of the incentives not to work exist,

meaning I can't answer that, as the 2 thoughts don't seem to mesh

and just to provide a example, if a guy has a bobcat of some type, needs a tire and goes down for 2 weeks. The things bill out at anywhere from 60-150/hr. Do the math on what that guy is losing. But using your logic, the guy should be stockpiling inventory including tires. The suppliers used to have them, but they are sold out waiting on more to show up, so they too tried to inventory, but the replenishment is broken. Probably sitting in one of those ships off cali.

how about the local electrician? Can't even get plastic electric boxes. He inventories when stuff shows up on shelves, but he is competing with all the others who also want to buy out the most recent shipment.

I could go on and on, but go ahead and call it fear porn.

nothing to do about fear, as it is reality.

I now have to make decisions on go no go based on what is going to be available in addition to the economics. And yes, have shelved some projects simply due to uncertainty on supply, meaning unknown costs.
 
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ZZZZZ

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Thank you JIT Just In Time inventory management.

One bad link can break or disrupt the whole supply chain.
 

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A farmer in these parts is harvesting 3500 acres with 4 row combine. His 8 year old John deere needed a part and he can't get it. Corns gotta come out somehow. A neighbor borrowed him his old combine that runs great. It'll just take a bit longer to do. Guy said he's gonna fix it and sell it off. Buy something older that he can stock up parts for.

I've got all kinds of stories like this from running the meat raffle in town. The locals talk about it all. FYI yields are down across the board 30% in MN.
 

Voodoo

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parts and availability are a issue guys,

not everything is bullchit,
agreed their articles are wrote by 2 years olds, but the point remains, there are supply chain issues everywhere,

My investment club Pres called me last night to cancel yet another meeting. He had two cars with the alternators go bad. One was a 2017 Ford and they could not find a part anywhere. Seriously, first, why is a 2017 alternator going bad (cheap junk from China likely). A nearly new truck and they can't find a part, not good.
 

Voodoo

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A farmer in these parts is harvesting 3500 acres with 4 row combine. His 8 year old John deere needed a part and he can't get it. Corns gotta come out somehow. A neighbor borrowed him his old combine that runs great. It'll just take a bit longer to do. Guy said he's gonna fix it and sell it off. Buy something older that he can stock up parts for.

I've got all kinds of stories like this from running the meat raffle in town. The locals talk about it all. FYI yields are down across the board 30% in MN.

I'm not sure the old 4-row combine is the way to go lol. 3500 acres would take a year at that rate. At least if my FIL was involved. I feel bad for him as he's just getting past the age of being able to farm on his own anymore. He left almost his whole (well half the total) corn crop in the field to this spring.
 

Voodoo

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been actually wondering about this,
started under tramp and continuing on thru to today,

yet then I have to ask why do all of the incentives not to work exist,

meaning I can't answer that, as the 2 thoughts don't seem to mesh

and just to provide a example, if a guy has a bobcat of some type, needs a tire and goes down for 2 weeks. The things bill out at anywhere from 60-150/hr. Do the math on what that guy is losing. But using your logic, the guy should be stockpiling inventory including tires. The suppliers used to have them, but they are sold out waiting on more to show up, so they too tried to inventory, but the replenishment is broken. Probably sitting in one of those ships off cali.

how about the local electrician? Can't even get plastic electric boxes. He inventories when stuff shows up on shelves, but he is competing with all the others who also want to buy out the most recent shipment.

I could go on and on, but go ahead and call it fear porn.

nothing to do about fear, as it is reality.

I now have to make decisions on go no go based on what is going to be available in addition to the economics. And yes, have shelved some projects simply due to uncertainty on supply, meaning unknown costs.

This is part of what drives inflation, ie inflation expectations. So when people start seeing these shortages they know that higher prices are coming but even worse they may not be able to get their stuff. What is your natural response? Well when you do find parts available you try to stock up and buy more than you need, further exacerbating the shortages and inflation.
 

mnmom

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I'm not sure the old 4-row combine is the way to go lol. 3500 acres would take a year at that rate. At least if my FIL was involved. I feel bad for him as he's just getting past the age of being able to farm on his own anymore. He left almost his whole (well half the total) corn crop in the field to this spring.
Yeah... a 4 row will take awhile. Thankfully the guy is also a seed dealer and can stay at it all day. He will have help once the other farmers around him get their stuff out. Just shows the fancy huge equipment ain't all its cracked up to be, but when farmers were told go big or get out most of them were happy to snatch up big equipment and promise to run 5000+acres. can you say dominos?
 

Scorpio

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yeah Vood, know a large company who saw this coming 6-8 mos ago,

and was very worried about keeping the manufacturing humming,
he was scouring the world for supplies and parts, pre-booking, buying excess supply, then excess capacity to move it,
and was willing to let the quarterlies take the hit,

basically telling others that if he didn't do this, what would the quarterlies look like with manufacturing on hold 'waiting'
 

Scorpio

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FYI yields are down across the board 30% in MN.

that is a big number
speaks to what we have been discussing for some time,
lack of rains
 

hammerhead

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been actually wondering about this,
started under tramp and continuing on thru to today,

yet then I have to ask why do all of the incentives not to work exist,

meaning I can't answer that, as the 2 thoughts don't seem to mesh

and just to provide a example, if a guy has a bobcat of some type, needs a tire and goes down for 2 weeks. The things bill out at anywhere from 60-150/hr. Do the math on what that guy is losing. But using your logic, the guy should be stockpiling inventory including tires. The suppliers used to have them, but they are sold out waiting on more to show up, so they too tried to inventory, but the replenishment is broken. Probably sitting in one of those ships off cali.

how about the local electrician? Can't even get plastic electric boxes. He inventories when stuff shows up on shelves, but he is competing with all the others who also want to buy out the most recent shipment.

I could go on and on, but go ahead and call it fear porn.

nothing to do about fear, as it is reality.

I now have to make decisions on go no go based on what is going to be available in addition to the economics. And yes, have shelved some projects simply due to uncertainty on supply, meaning unknown costs.
I think the design is so it is all to be under the control of the state.
 

Voodoo

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yeah Vood, know a large company who saw this coming 6-8 mos ago,

and was very worried about keeping the manufacturing humming,
he was scouring the world for supplies and parts, pre-booking, buying excess supply, then excess capacity to move it,
and was willing to let the quarterlies take the hit,

basically telling others that if he didn't do this, what would the quarterlies look like with manufacturing on hold 'waiting'

Rare intelligence these days. I wonder if one couldn't start doing some custom 3D printing of these hard to find parts. The hard part is getting all the design specs. Even if they aren't perfect farmers and those who need it will be more than willing to try some not quite spec parts, at least in areas that aren't going to ruin something if they fail.
 

Treasure Searcher

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When you look at the pictures in the article, it shows older combine harvesters.

There are farm equipment bone yards in farm country. You go there to obtain used parts. Older combine harvesters included. You can go to dealers and online aftermarket parts suppliers to try and source parts. If you intended to keep older machinery in the first place, you would go to auctions and purchase older machinery to cababalize. Drive by a small farm and wonder why all that older machinery is there? For spare parts.

In the meantime, you can look to hire custom combiners to harvest the crop. Yes, it all costs cash, but it is part of farming.
 

nickndfl

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Appliances are inshort supply too. Used to walk into any store and have 10 choices. Now's it's 2 or 3 unless you want to wait 45 days.
 

Stop Making Cents

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For decades, the eggheads in university economic departments have been bragging about Just in Time inventory and how brilliant it is. Also bragging about outsourcing and free trade, and how great it all is. These are people that have never worked a day in the real world, who have basically brought our entire nation to the verge of destruction. Do you think they feel any shame for what they have done by parroting their group-think 'brilliance'? of course not. It's the same egghead, group-think, peer-pressure behind the establishment pushing the deadly vaccines. DO NOT question them. They are the "experts." They think they are gods. And they are sorely mistaken.
 

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Appliances are inshort supply too. Used to walk into any store and have 10 choices. Now's it's 2 or 3 unless you want to wait 45 days.
We are in the process of redoing our house plumbing. We are part done (new water heater installed last week) and have been ordering items ahead of time.

Bought the complete shower already, before the future install. Guy nearby ordered his shower last spring from major hardware store. Was called and told this fall "it came in". He went to pick it up and the shower walls not included.

If you know you are going to need something, preplan to order it.
 

Stop Making Cents

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We are in the process of redoing our house plumbing. We are part done (new water heater installed last week) and have been ordering items ahead of time.

Bought the complete shower already, before the future install. Guy nearby ordered his shower last spring from major hardware store. Was called and told this fall "it came in". He went to pick it up and the shower walls not included.

If you know you are going to need something, preplan to order it.
THis is the "new normal". Ordering ahead and waiting 6 months for what you need.
 

the_shootist

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This is part of what drives inflation, ie inflation expectations. So when people start seeing these shortages they know that higher prices are coming but even worse they may not be able to get their stuff. What is your natural response? Well when you do find parts available you try to stock up and buy more than you need, further exacerbating the shortages and inflation.
While I partly agree to this, you need to have critical items on hand and not rely with "luck" of the retail market.

What I think is causing part of the inflation, is the expectation of the government to spend "trillions on infrastructure". If the government throws out cash for infrastructure, government contractors will be paying premium for materials and supplies.

When a road contractor works on a FEMA road project, in my area, they charge 3 times the regular cost for gravel. No one cares, since Uncle Sugar is footing the bill. All these promised trillions, in Federal infrastructure projects, are going to go the same way.
 

WillA2

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The lower crop yields play right into this manufactured shortage of everything but taxes. We are seeing what happens when manufacturing is exported to foreign states that do not/should not care about us. Americans in general are so gullible to believe this is caused by the beer virus. This is intentional. The unitary is working against the people.
 

WillA2

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When a road contractor works on a FEMA road project, in my area, they charge 3 times the regular cost for gravel. No one cares, since Uncle Sugar is footing the bill. All these promised trillions, in Federal infrastructure projects, are going to go the same way.

Just go look and see how much of the funding actually goes to fund infrastructure.
 

Treasure Searcher

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Just go look and see how much of the funding actually goes to fund infrastructure.
Hijacking/diverting/raiding happens with government spending. But when the Democratic Congress goes on a spending spree, it causes inflation.
 

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I know with the trucking industry, now isn’t a good time to have a breakdown. Many parts are back ordered until 2022 at the dealership… unless you want to pay a lot of money and find it on your own.
 
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I know with the trucking industry, now isn’t a good time to have a breakdown. Many parts are back ordered until 2022 at the dealership… unless you want to pay a lot of money and find it on your own.
My friend is a diesel mechanic and normally works 55 hrs a week. Now down to 40 and 1/2 that time is BS right now. Plenty of trucks lined up to work on but no parts and no inventory in sight.

Another downside of sending manufacturing to China is they control our supply lines now.
 

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I know with the trucking industry, now isn’t a good time to have a breakdown. Many parts are back ordered until 2022 at the dealership… unless you want to pay a lot of money and find it on your own.
This past spring a regional dealer of construction equipment and servicing, was buying parts off the internet, since some replacement parts were not available to be sourced. If you have any new construction, vehicle, etc. parts sitting around, you could list them fleabay, etc and possibly sell them.

I know of a guy, who disassembled a motorcycle and sold it piece by piece over the internet.
 

Stop Making Cents

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Linck said it’s possible the U.S. waterway system also has an image problem with modern-day logistics professionals. While moving commodities by inland waterways can be more fuel-efficient and less costly, it takes more long-range planning.

“We need to reeducate all our traffic managers, give them a little more power, get these MBA bean-counting managers off their just-in-time inventory control. They can’t plan right, so they send everything on a truck. They just throw money out there and they get it where it needs to go, basically,” Linck said.

 

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My investment club Pres called me last night to cancel yet another meeting. He had two cars with the alternators go bad. One was a 2017 Ford and they could not find a part anywhere. Seriously, first, why is a 2017 alternator going bad (cheap junk from China likely). A nearly new truck and they can't find a part, not good.
They have salted the jabs with bad ones why not the parts supply chain. Eliminated profits & ties up resources. Say 5% of fuel pumps are bad. Look how much cost and aggravation it causes from the parts store to the customer & everyone and everything inbetween.

What are you going to do? .gov has sold out American industry. Factories are long gone along with the knowledge, machinery and skills.
No one wants to work. Play games on their phones and demand higher wages. Did industry really have a choice not to move? Remember walmart demanding companies reduce prices until the company had no other choice but to go off shore?

You guys need to start thinking sabotage not cheap chinese junk. But that is part of it also.
 

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It’s really hitting everywhere. Did some piping yesterday. 3 places to get what I needed. Cost the customer about 2.5 hours extra.
All the HVAC parts I have been stocking up just turned to gold. Moved 25 parts in the past 10 days. Seems like everyone just started picking up their parts online because they can’t get them.

It’s going to be an interesting winter. Wait until you can’t get heating parts. Maybe time to pick up temp heat units.
 

Voodoo

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They have salted the jabs with bad ones why not the parts supply chain. Eliminated profits & ties up resources. Say 5% of fuel pumps are bad. Look how much cost and aggravation it causes from the parts store to the customer & everyone and everything inbetween.

What are you going to do? .gov has sold out American industry. Factories are long gone along with the knowledge, machinery and skills.
No one wants to work. Play games on their phones and demand higher wages. Did industry really have a choice not to move? Remember walmart demanding companies reduce prices until the company had no other choice but to go off shore?

You guys need to start thinking sabotage not cheap chinese junk. But that is part of it also.

Scour the internet and print myself said part. Up yours CCP.