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Who We Serve - Machinery

Hauling large freight

Across practically every manufacturing sector there are supply chain issues, and this is particularly true for machinery and equipment manufacturers, both at the OEM and component level. Persistent supply chain and logistical challenges have throttled the machinery industry despite significantly increased demand. Three main factors driving these supply chain disruptions are workforce shortages, access to production components, and inflation - in short, people, parts, and pricing.

Industry Statistics

82%

Number of companies that experience an unplanned downtime

80%

Number of companies that cannot accurately estimate their equipment downtime

5

Months average increase in lead time for some equipment components

10%

Inflation rate for steel and material-intensive heavy equipment

The Association of Equipment Manufacturers (AEM) has warned that U.S. equipment manufacturers will continue facing supply chain issues and persistent labor shortages throughout 2023, and this will change how many companies manage their supply chains.

For 70 percent of machinery original equipment manufacturers (OEMs), these issues continue to get worse, while 45 percent of component manufacturers are also having issues. As a result, heavy equipment and parts are in limited supply, inventories are low, and prices continue to rise as a result of scarcity and inflation.

Warehouse worker

People

Many supply chain functions, from manufacturing, transportation, to warehousing, are still struggling to find and retain workers. This workforce shortage has impacted many business sectors in the US, and although some of the workforce reduction can be attributed to the pandemic, the shrinking equipment manufacturing labor pool has been a growing problem for more than a decade. It is placing a significant strain on machinery manufacturing, with no easy answers available and no end in the foreseeable future.

Loading packages onto pallet

Parts

OEM’s are impacted when their component suppliers cannot fulfill their orders or have their orders delayed. This leads to difficult choices for component manufacturers since it is not just inventory shortages that are causing problems, but even shortages of raw materials that are depleted to levels not seen since 2010. In one machinery segment, agricultural equipment, this has made it difficult to get spart parts and maintenance supplies. For example, due to a global paper shortage, obtaining different types of filters has become a challenge. Companies that can source parts from multiple suppliers are generally finding more success at reducing supply chain impacts than those that do not.

 

OEM’s are impacted when their component suppliers cannot fulfill their orders or have their orders delayed. This leads to difficult choices for component manufacturers since it is not just inventory shortages that are causing problems, but even shortages of raw materials that are depleted to levels not seen since 2010. In one machinery segment, agricultural equipment, this has made it difficult to get spart parts and maintenance supplies. For example, due to a global paper shortage, obtaining different types of filters has become a challenge. Companies that can source parts from multiple suppliers are generally finding more success at reducing supply chain impacts than those that do not.

This has forced some distributors to move outside their comfort zones, change long established purchasing processes, and try new products. Ultimately, some found they liked a new supplier or part option better. A company that once only used two major suppliers for suspension parts now has four. This can create additional difficulties in terms of ensuring the same quality from the new suppliers, but diversification can ease some supply chain shortages. However, in many cases, machinery is partially manufactured then put aside while waiting for a final part in order to complete assembly. Unfortunately, this creates a significant backlog of work-in-progress (WIP), and getting those machines completed before creating more inventory of partially finished machines is critical.

Again, in the agricultural machinery market segment – as an example - many parts remain difficult to acquire, including rubber tracks (and their subcomponents) and tires, hydraulic hoses, oil filters, foam seats, wiring harnesses and other electrical components, undercarriages, and emissions-related parts. Due to these shortages, dealers and rental fleet owners are cannibalizing some equipment to get others out the door into the hands of buyers and lessors. Semiconductors and microchip availability continues to plague many manufacturers. Because of these ongoing issues, behaviors around the equipment lifecycle are also changing, with owners and lessors engaging new mitigation strategies to avoid being impacted by supply chain problems. Some of these include:

  • Planning for equipment downtime to avoid parts shortages
  • Servicing equipment now to prevent unplanned downtime
  • Maintaining and keeping current machines since additional maintenance costs are typically lower than new equipment price increases
  • Keeping longer leases or buying out current leases to retain current equipment until new equipment is available at more affordable prices
  • Increasing supplier bases by sourcing from different locations
  • Increasing parts stock on hand by transitioning from "just-in-time" to "just-in-case"
  • On-boarding new suppliers and integrating them into your quality control system
Loading parts onto a truck

Price

Machinery and parts shortages have driven prices up for both new and used equipment, which have further increased due to inflation. For example, in December 2020, the average auction price for excavators - regardless of brand, condition, size, or age - was nearly $45,000. In Q4 2021, that price had increased by another $10,000. Also in December 2020, the average skid steer had an auction price of $10,000, and in just 12 months it rose to almost $15,000.

Although equipment buyers expect annual or bi-annual price increases, these occurred much more frequently in 2021, with inflation adding another 10 percent on top of that. For some types of construction vehicle attachments, prices increased by 30 percent – if they were even available at all.

In addition to rising prices, lead times are also increasing, causing further delays for many machinery manufacturers. The average OEMs' lead time has nearly tripled since 2019 and continues to increase. A piece of equipment that previously had a three-month lead time is now up to eight and a half months. As a result, many manufacturers are not accepting new orders from current customers or taking on new customers at all, furthering reducing potential growth opportunities.

HotShotTrucking.com Can Support Your Supply Chain

Despite ongoing labor and parts shortages and other supply chain issues, consumer demand continues to exceed production capacity. This does not mean customers are lowering their expectations. In fact, most customers still have high expectations for good quality products, low shipping costs, and fast delivery times. This increased demand means that many machinery manufacturers are just trying to keep up – some not so successfully.

Faced with these types of logistical challenges, many machinery manufacturers are turning to 3PL’s – or third-party logistics providers, to develop and execute innovative shipping solutions for their most time sensitive parts and equipment to get back online and back on schedule. This is where the speed, expertise, and experience of freight services from HotShotTrucking.com can make a difference throughout your entire equipment production supply chain.

It’s critical to work with a third-party logistics company like HotShotTrucking.com that understands the intricacies of shipping or transporting any type of parts or supplies. By having the right plans and parts, people, and same day logistics partner like HotShotTrucking.com, you can effectively mitigate the loss of revenue, schedule disruptions and customer dissatisfaction due to production downtime or parts shortages. Whether it’s in the air or on the ground, freight services by HotShotTrucking.com excels at the prompt delivery of parts and equipment throughout North America. Here are just a few ways HotShotTrucking.com serves and supports the machinery manufacturing sector.

Sprinter van with flaming tires

Fast - Ground Expedite

Ground expedite service from HotShotTrucking.com includes everything from Sprinter vans, small and large straight trucks, up to 53-foot tractor trailer delivery teams. We’ll pick up your shipment, deliver it to the airport, then receive it at the other end – providing hand-carried service as necessary or required.

Loading cargo on airplane

Faster - Air Freight

Using regular commercial flights or the major air freight integrators gets your parts in the air to get you back in the air faster.

air charter plane

Fastest - Air Charter

Exclusive flights on a HotShotTrucking.com air charter provide the exclusivity and speed you need to hit those critical deadlines. Air charters offer complete shipment flexibility from departure time to final destination. Air charters are one of the fastest shipping options available and include in-flight tracking, so you’ll always know the status of your parts shipment.

No Shortage of Excellence

With HotShotTrucking.com, you can always expect concierge level service from start to finish.

Dedicated Agent

Always Free Freight Quotes

HotShotTrucking.com offers efficient and effective solutions across a wide range of service options. No prior account is needed to get started. Just call us at (800) 713-1000 or enter your order online. All costs are listed without any hidden fees, so you know up front how much you will pay.

Semi truck close up

Customized Solutions

We do all the logistical legwork to find the best solution for your specific situation. It might mean an exclusive air charter, or perhaps expedited ground shipping that still gets your critical parts to its destination on time.

Global tracking network

Real-time Tracking

Lost or delayed parts can cripple a production schedule, driving up costs to the manufacturer, dealer, and customer. HotShotTrucking.com uses the latest tracking technology to always know where your shipment is, and our team is happy to give you updates whenever you need them. We are proactively engaged with your shipment, monitoring air traffic, inclement weather, connecting flight cancellations, road construction and congested streets.

Steve from Air Freight describing services

Constant Contact

Want status on your parts? Our team is always available to answer your questions, provide an update on your shipment’s location, and take new instructions 24/7/365. Call us any time.

Sprinter van en route

Experienced Expeditors

With HotShotTrucking.com, you’ll work with the same expeditor from start to finish, ensuring consistent communication, eliminating misunderstandings, and improving the quality of your entire shipping experience. That’s why some of the largest names in machinery manufacturing trust HotShotTrucking.com to meet their urgent shipping deadlines.

 

We develop plans that guarantee shipping services are supported by time-effective options whether the final destination is a major air hub, a manufacturing facility, or even a remote airstrip.

Choosing the right logistics partner to get your machinery and equipment parts is a critical business decision. With HotShotTrucking.com, experience the peace of mind and confidence that comes from an expert delivery plan, and working with a dedicated expeditor from start to finish. For more information, contact us today at (800) 713-1000 and let’s get started!

Industries We Serve

Automotive

The automotive supply chain already has significant challenges. Don’t let malfunctioning equipment stop the production line. Step on the gas with HotShotTrucking.com’s suite of services that will get you back in the fast lane.

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Aviation & Aerospace

Every moment a commercial airliner sits on the ground, it costs an airline money. Expedited freight services by HotShotTrucking.com can get you back in the air with prompt delivery of parts and equipment throughout North America.

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Construction

One shipping delay can snowball and cause delays throughout your entire project. You need an experienced 3PL provider who understands the construction industry and has the logistical reach to deliver your freight on time, anywhere. That 3PL partner is HotShotTrucking.com.

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Mining & Metals

From cranes to chemicals to excavators to conveyor belts, HotShotTrucking.com has the experience and industry know-how required for shipping sensitive, oversized, and hazardous equipment.

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Manufacturing

Every moment a manufacturing facility or factory sits idle costs a company money because of the high costs involved in lost sales and lost customers. With many manufacturers building to only just-in-time production rates, any disruption threatens parts and vehicle inventories. This is where the speed, expertise, and experience of freight services from HotShotTrucking.com can make a difference throughout the entire manufacturing supply chain.

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Telecommunications

From servers to cell towers, information, voice, and data must flow to keep businesses, production, and the public online and connected. When equipment goes dark, depend on HotShotTrucking.com to get your systems flashing green again.

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Oil & Gas

The oil and gas industry faces challenging conditions in offshore and onshore oil rigs, often in remote locations with limited infrastructure. Don’t let oil pumps or pipelines sit idle waiting for equipment. By having the right plans, parts, people, and logistics partner like HotShotTrucking.com, you can effectively mitigate plant or pump downtime, unscheduled disruptions, and equipment failures.

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