In the years 2022 and 2023, the global supply chain faced significant disruptions due to the COVID-19 pandemic and the war in Ukraine. These events led to supply chain bottlenecks and delays, causing order backlogs for trucks around the world. Daimler Chief Executive Martin Daum described the pressure as one of the worst in his career during this time, with shortages of energy, metals, and semiconductors posing particular challenges.
As 2024 began, there was a noticeable easing of pressure on the supply chain. Companies like Volvo Trucks reported that pent-up demand had started to level off and order books were becoming more stable. While Daimler and Volvo both anticipated strong demand for heavy-duty vehicles in the US, Europe was experiencing a different trend. Daimler reported a 15% drop in orders in the region for the first quarter of 2024, while Volvo noted a 24% decline as early as the fourth quarter of 2023.
Despite the appearance of a ‘return to normal’, there are concerns about potential challenges on the horizon. While productivity may improve, there is a risk that new economic and supply chain obstacles could arise and disrupt the plans for the global truck market’s future growth. It remains to be seen how the industry will navigate these potential challenges in the coming years.