Tractor Shortages

[Blue Mule]

You can't blame the Govt for low pay. Trucking companies are private businesses. That is a natural part of the free enterprise system we all love.

How can you afford to pay truckers well when your operating costs are going sky high due to the policy of the current administration which is causing inflation to balloon to levels we haven't seen in 32 years? The bottom line really changes when fuel is $4 a gallon and operating costs soar. Doesn't leave as much meat on the bone for payroll. This government is to blame for EVERYTHING right now. They're even responsible for the shut-downs that started the mess in 2020.

Another benefit for Toyota was that a defect later discovered in millions of parts or assemblies were not sitting in a warehouse only to be installed in the rest of that model year or more. By having a limited inventory, corrections were made so only a limited number of vehicles were affected. One notable exception being the frame rot on their pickups, a result of a lighter frame that was no match for road salt. Of course, they also stopped the line if a problem was discovered during assembly and a solution was found then and there by the workers, unlike the US brands which would push the defective cars out to the dealers to find a remedy. Germans would let the defect get to the end of the line where a team would make corrections before shipment to dealers and add that sometimes substantial cost onto the MSRP of the cars. All of this in a great book I read many years ago. And we wonder how the Japanese lines took over the auto industry.

A major drawback is that the consumer can't get exactly what they want. You cannot walk into a Toyota dealership and order a truck exactly the way you need/want it. And that's a big no-no to an American consumer who is about to drop $55,000 on a vehicle.

In addition to that, my father who is a heavy equipment mechanic tells me that Toyota's industrial division is hurting right now. Can't get parts, can't get equipment or machines, nothing.

 

[rScotty]

Took my Kubota BX25 in for service a couple weeks ago, and my dealer where I bought it has been expanding and getting bigger. The two nearest dealers close down, so now they have all the business! Still had very little inventory, and everything that I saw they said it was already sold or in for service.

Good idea, to get the subject back to something we know about....tractors.
When I took the afternoon trip last weekend and looked in on our JD and Kubota dealers they both had plenty of tractors on the lot. I have no idea if they were for sale or just sitting there, but there were plenty.
rScotty

 

[finn1]

Fuel prices are high because of all the drilling that was shut down three years ago when oil prices were actually negative because of no demand.

Something like 186 drillers went bankrupt. Guess what. No drilling happens when everyone is bankrupt. Fracking needs oil to be in the $50-80 / barrel range to be profitable. What part of that is so hard to understand?

We put our head in the sand and blame someone else because we’re too stupid to remember things that happened a couple of years ago.

 

[jmc]

Fuel prices are high because of all the drilling that was shut down three years ago when oil prices were actually negative because of no demand.

Something like 186 drillers went bankrupt. Guess what. No drilling happens when everyone is bankrupt. Fracking needs oil to be in the $50-80 / barrel range to be profitable. What part of that is so hard to understand?

We put our head in the sand and blame someone else because we’re too stupid to remember things that happened a couple of years ago.

Also, OPEC and Russia collaborated LAST YEAR to reduce oil supplies. Others delight in blaming this administration for higher gas prices...

 

[IndyJay]

Flurries here, what about where you are?
(Way off topic anyway, might as well talk about the weather).

 

[chinawall]

I ordered a windshield for my TYM cab in May...just got it Nov. 24

 

[Boss 302]

Here we go POLITICS, let's keep this about something most of us can speak intelligently about. TRACTORS

 

[Paystar]

Flurries here, what about where you are?
(Way off topic anyway, might as well talk about the weather).

Got three days of snow at home. Dying to try out my new RTV and Boss plow but ground isn't frozen yet and I don't want to make a mess. So just left it for now.

 

[Steppenwolfe]

Here we go POLITICS, let's keep this about something most of us can speak intelligently about. TRACTORS

Agreed !!! Back to my color is better than your color...

 

[IndyJay]

Got three days of snow at home. Dying to try out my new RTV and Boss plow but ground isn't frozen yet and I don't want to make a mess. So just left it for now.

Same here, not cold enough to freeze the ground nor to drop the moisture out of the air, so it is a bone chilling cold.

 

[BCinVA]

Another benefit for Toyota was that a defect later discovered in millions of parts or assemblies were not sitting in a warehouse only to be installed in the rest of that model year or more. By having a limited inventory, corrections were made so only a limited number of vehicles were affected. One notable exception being the frame rot on their pickups, a result of a lighter frame that was no match for road salt. Of course, they also stopped the line if a problem was discovered during assembly and a solution was found then and there by the workers, unlike the US brands which would push the defective cars out to the dealers to find a remedy. Germans would let the defect get to the end of the line where a team would make corrections before shipment to dealers and add that sometimes substantial cost onto the MSRP of the cars. All of this in a great book I read many years ago. And we wonder how the Japanese lines took over the auto industry.

Interesting post. I worked for a major global heavy truck manufacturer for 40 years. Many of those years I worked in the function that taught and trained people all over the world in the "Lean" manufacturing techniques. It is generally one of the least understood methodologies I can think of. One example is that a good lean supply chain is a short supply chain. Many good lean companies have their suppliers virtually next door in supplier parks etc. This reduces inventory in the chain but avoids the interruptions of transport and/or weather disruptions. Further, the amount of inventory held from any given supplier is calculated based on many factors including supplier reliability, chances for disruption, and the normal replenishment cycle time etc. I could go on forever LOL.

 

[rScotty]

Sometimes I read these threads and am astonished at how big and different our country is. Some of the things my TBN buddies worry about seem like they are happening on a different planet.

Here in the intermountain West, the dealers have tractors to sell. And credit still takes a while. Fuel is more expensive than in other years, but not really by all that much. Fuel is always more during ski & vacation season anyway; it has been for years. I filled up a couple of days ago at $3.29/gallon for gas. No shortage on fuel of any kind. Diesel prices are actually down from what I recall paying before Covid.

The grocery stores are stocked, building materials are reasonable again, and most everyone you see wears - or at least carries - a mask. You can't miss that mask use is close to 100% indoors in stores among customers, and it is 100% among store employees.

Some things are different. "Which vaccination are you on?" has replaced "How are you doing?" as a greeting.

The only real downturn I see is in car and tractor repair parts. That is real here, but is more a lack of experienced employees and tradesmen than parts. The parts are probably there; they just can't find them.

So far we get around the problems by ordering online.
Online vendors seem unaffected. Delivery via UPS/FedX package service is way faster than it ever was before.
I think online sales are what is going to change the world if anything does.
rScotty

 

[Rob41]

Sometimes I read these threads and am astonished at how big and different our country is. Some of the things my TBN buddies worry about seem like they are happening on a different planet.

Here in the intermountain West, the dealers have tractors to sell. And credit still takes a while. Fuel is more expensive than in other years, but not really by all that much. Fuel is always more during ski & vacation season anyway; it has been for years. I filled up a couple of days ago at $3.29/gallon for gas. No shortage on fuel of any kind. Diesel prices are actually down from what I recall paying before Covid.

The grocery stores are stocked, building materials are reasonable again, and most everyone you see wears - or at least carries - a mask. You can't miss that mask use is close to 100% indoors in stores among customers, and it is 100% among store employees.

Some things are different. "Which vaccination are you on?" has replaced "How are you doing?" as a greeting.

The only real downturn I see is in car and tractor repair parts. That is real here, but is more a lack of experienced employees and tradesmen than parts. The parts are probably there; they just can't find them.

So far we get around the problems by ordering online.
Online vendors seem unaffected. Delivery via UPS/FedX package service is way faster than it ever was before.
I think online sales are what is going to change the world if anything does.
rScotty

I've been doing the online thing way more than I used to. We are well stocked with most regular items here in Northern Mi, but there are very few tractors or cars/trucks at the dealerships.

 

[Boss 302]

The chip industry really hurt the big 3 car manufacturers, I know one of the major chip manufacturers is playing catchup.

 

[Hay Dude]

Sometimes I read these threads and am astonished at how big and different our country is. Some of the things my TBN buddies worry about seem like they are happening on a different planet.

Here in the intermountain West, the dealers have tractors to sell. And credit still takes a while. Fuel is more expensive than in other years, but not really by all that much. Fuel is always more during ski & vacation season anyway; it has been for years. I filled up a couple of days ago at $3.29/gallon for gas. No shortage on fuel of any kind. Diesel prices are actually down from what I recall paying before Covid.

The grocery stores are stocked, building materials are reasonable again, and most everyone you see wears - or at least carries - a mask. You can't miss that mask use is close to 100% indoors in stores among customers, and it is 100% among store employees.

Some things are different. "Which vaccination are you on?" has replaced "How are you doing?" as a greeting.

The only real downturn I see is in car and tractor repair parts. That is real here, but is more a lack of experienced employees and tradesmen than parts. The parts are probably there; they just can't find them.

So far we get around the problems by ordering online.
Online vendors seem unaffected. Delivery via UPS/FedX package service is way faster than it ever was before.
I think online sales are what is going to change the world if anything does.
rScotty

rScotty,
Below is the price of diesel fuel for last 5 years.
Never been higher than now.

Below is the price of gasoline over the last 5 years
Never been higher than now

 

[Steppenwolfe]

As far as equipment availability goes, a plumber I know called me today about buying my mini ex. He was desperate for one, I rarely use mine, and boda bing I sold it. Had it for 6 years and got exactly 1500 less than I paid for it. Oh... and the best part; I can borrow it if I ever need it again!

 

[Rob41]

My wife had her new Chevy Trax for three years. I just sold it back to the dealer for what I paid. The prices are even more crazy for pick ups around my area.

 

[Steppenwolfe]

My wife had her new Chevy Trax for three years. I just sold it back to the dealer for what I paid. The prices are even more crazy for pick ups around my area.

We are in unchartered territory for sure...

 

[rScotty]

rScotty,
Below is the price of diesel fuel for last 5 years.
Never been higher than now.

Interesting charts, but they don't say where those prices were taken. Our diesel costs less than that.

My point is that it is normal for people to think that the entire rest of the country is experiencing the same things that are affecting them locally.
And it's just not so.

rScotty

 

[Torvy]

Gasoline and Diesel Fuel Update

Gasoline and diesel fuel prices released weekly.

www.eia.gov

Breakdown of current prices by region.