**London**: A recent S&P Global Mobility study identifies supply chain disruptions, labour shortages, and regulatory changes as major challenges for automotive suppliers in 2023. The report encourages agility, advanced technology investment, and effective supply chain management to navigate the evolving landscape of the industry.
Recent insights from a comprehensive study by S&P Global Mobility, which involved interviews with 42 senior executives across the automotive supply chain, indicate that suppliers are bracing themselves for three prominent challenges in 2023: supply chain disruptions, labour shortages, and an evolving regulatory environment. These findings were detailed in S&P Global Mobility’s whitepaper titled “Automotive Suppliers Outlook for 2025.”
The automotive sector is currently facing significant changes spurred by trends in electric vehicles (EVs), connectivity, and sustainability. As these factors shape the future of the industry, suppliers are expected to recalibrate their strategies in order to remain competitive within a dynamic marketplace characterised by rapid change.
S&P Global Mobility highlights several crucial actions that suppliers must undertake to navigate the anticipated challenges. Industry leaders are urged to adopt a more agile and adaptable approach to their operations, enabling them to respond effectively to the fluidity of the automotive landscape. Additionally, the need for robust and effective supply chain management strategies is underscored, particularly in light of the volatility surrounding raw material availability and the persistent shortages of skilled labour.
Continuous investment in advanced technologies is also identified as a vital component for suppliers wishing to maintain a competitive edge. By enhancing their operational efficiency, suppliers can better position themselves to mitigate the risks associated with supply chain disruptions and labour constraints.
The interview series has illuminated the future trajectory of the industry, revealing that resilience, innovation, and strategic partnerships will be the cornerstone of success for automotive suppliers. Those who actively embrace these elements are expected to be in a stronger position to thrive amidst the upheaval of the industry and will be able to capitalise on the opportunities brought about by the ongoing automotive revolution.
S&P Global Mobility’s “Automotive Suppliers Outlook for 2025” serves as a significant resource for stakeholders in the automotive sector, offering a detailed roadmap to navigate the complexities and challenges poised to impact the supply chain in the years ahead.
Source: Noah Wire Services
