Shortage

Foam shortage affecting furniture, automotive industries | Business

TUPELO • A shortage of the chemicals used to make foam has caused a ripple effect across the furniture industry, but it isn’t alone in trying to deal with the growing problem.

The automotive industry also is affected, as foam is used for the seating inside vehicles.

The foam shortage in the furniture industry has been an issue since the fall but has been exacerbated by the recent deep freeze in Texas and Louisiana, where most of the chemicals are produced for foam.

“We’re working four days per week to try to deal with the shortage,” said Jim Sneed, CEO of Affordable Furniture in Randolph. The 300-employee plant, like so many others, can’t build furniture if it can’t get foam.

Other companies are taking entire weeks off work, or working every other week, adjusting schedules along the way to deal with the shortage.

“We started seeing shortages in November or

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Porsche CEO warns of ‘very serious’ global chip shortage

Porsche’s chief executive warned on Monday that the German luxury automaker’s daily operations could be affected over the coming months by a “very serious” global semiconductor shortage.

“The semiconductor topic is a very serious one because the whole industry is affected because of the big demand of consumer electronics and the faster return of the automotive sector,” Oliver Blume, chief executive of Porsche, told CNBC’s “Squawk Box Europe” on Monday.

“We could be affected every day, so we watch very deeply (over) the next days and months what we can do. We have to relax short term and look for measures long term.”

His comments come after a sudden upsurge in global car sales late last year coincided with a shortfall of essential chip components. The supply shortages brought assembly lines of the chip-reliant car industry to a standstill and halted the production of hundreds of thousands of vehicles worldwide.

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How Covid led to a $60 billion global chip shortage for automakers

This photo shows Ford 2018 and 2019 F-150 trucks on the assembly line at the Ford Motor Company’s Rouge Complex on September 27, 2018 in Dearborn, Michigan.

Jeff Kowalsky | AFP | Getty Images

Automakers across the globe are expected to lose billions of dollars in earnings this year due to a shortage of semiconductor chips, a situation that’s expected to worsen as companies battle for supplies of the critical parts.

Consulting firm AlixPartners expects the shortage will cut $60.6 billion in revenue from the global automotive industry this year. That conservative estimate includes the entire supply chain — from dealers and automakers to large tier-1 suppliers and their smaller counterparts, according to Dan Hearsch, a managing director in the New York-based firm’s automotive and industrial practice.

“All the way up and down the supply chain, everybody is out some portion of money,” he said. “This could be 10% of

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Nissan lowers sales forecast, acknowledges chip shortage disruption

This photo, taken in the U.K. on December 18, 2020, shows the back of a Nissan Leaf electric vehicle.

Ian Forsyth | Bloomberg | Getty Images

The CEO of Nissan reaffirmed the importance of electric vehicles to the carmaker’s future on Tuesday, telling CNBC that his company would be “building (on) our strengths to electrify 100% of our all-new vehicle offering from the early 2030s in key markets.”

Makoto Uchida’s comments echo an announcement made by Nissan at the end of January, when the firm said the Japanese, European, U.S. and Chinese markets would be the focus of its electrification goal for new vehicles.

In his interview with CNBC’s “Street Signs Europe,” Uchida also addressed the global shortage of semiconductors affecting the automotive industry, stating that it had “impacted our domestic and our overseas production.”

An increased demand for gadgets and electronic devices during the coronavirus pandemic has contributed to

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