Rising Car Production Likely to Trigger N. America Parts Shortages?

Suppliers in North America are already struggling to keep up with growing vehicle production in the region. But spot shortages of parts will be more likely if output tops 16 million units next year, says IRN Inc.

A new poll by the Grand Rapids, Mich.-base consulting firm finds that am average 28% of suppliers say they don't have capacity to meet that level of demand. The proportion rises to 30% for chassis and suspension suppliers and 38% for makers of electronic components.

IRN says the poll indicates the industry is "maxed out" and will make capacity a major issue in 2014 if production continues to expand. The firm notes that carmakers are trying to avoid problems by offering longer-term contracts in hopes of coaxing suppliers to boost capacity.