Arab Press

بالشعب و للشعب
Wednesday, Apr 08, 2026

Chip shortage makes work trucks scarce for businesses facing booming demand

Chip shortage makes work trucks scarce for businesses facing booming demand

Construction contractors, home cleaners and other service-based companies are struggling to find new work vehicles, a potential bottleneck in growing their businesses as demand for their services surges amid the rebounding economy.

A shortage of computer chips that are used for everything from engines to air bags has disrupted vehicle production for months, squeezing dealer inventory and leaving car shoppers with scant selection and elevated prices. As auto makers prioritize building pricey trucks and SUVs for individual buyers, commercial-fleet operators—which generally favor no-frills models and buy them at a discount—have been disproportionately affected, analysts and dealers say.

The pullback in commercial-fleet sales has left businesses and municipalities competing over scarce supply, often exceeding their budgets to buy vehicles that may not be the best fit for the job. Some fleet operators and dealers say factory orders for pickup trucks and cargo vans have been sitting unfilled for months.

In some cases, the inventory crunch has prevented businesses from buying new vehicles to replace older models. In others, it has hampered their ability to expand operations to satiate booming demand related to an uptick in construction, home renovations and other services.

Randy Blubaugh said his home-cleaning business outside Dallas is receiving between 50 and 70 calls a week from households asking for on-site assessments his business can’t handle without more cars.

"I can’t even get to a fraction of these potential customers," he said.

His business, a franchise of the Cleaning Authority, currently sends out two-person teams in its 11 Chevrolet Spark small cars, a model also popular with rental-car fleets. The leasing company he works with has had difficulty finding more cars to meet the increased demand, which he said would be enough to potentially double the size of his fleet.

Despite the chip shortage, auto sales overall have largely recovered to pre-pandemic levels in the first half of 2021. But the recovery in sales of commercial vehicles has lagged behind the broader trend.

Overall U.S. vehicle sales of 8.3 million in the first half of 2021 were just 95,000 fewer than they were during the same period in 2019 before the pandemic, according to J.D. Power. The mix, however, is now more heavily skewed toward retail sales to individual buyers. This year, 14% of vehicles sold were to fleet customers, compared with 22% in 2019—a difference of roughly 695,000 vehicles, the firm’s data shows.

Companies are also paying more for work vehicles when they can find them in stock, according to dealers, businesses and leasing agents.

Commercial customers, who are accustomed to getting discounts of 8% or more from the sticker price, are routinely paying above sticker because of tight supply, said Rick Nicoletti, vice president at Napleton Fleet Group.

The Chicago-area group sells about 15,000 vehicles to commercial buyers annually, including construction contractors, insurance firms and delivery companies.

"There’s a huge demand for vehicles right now, and hardly any supply," Mr. Nicoletti said. "I’ve been doing this for 40 years and never seen anything like it."

Jeff Barron, who heads fleet leasing at Delaware-based Bancorp Inc., said paying more compounds the budget implications for fleet customers buying in bulk.

"It’s one thing if it’s one vehicle. It’s another if you were planning to buy or lease 15," he said.

Auto makers, which have shut some factories for months, have said they are allocating what chips they have to higher-end models that are better for their bottom lines. Fleet operators say they have often found themselves pushed to the bottom of the wait list.


General Motors Co. warned commercial customers early this year that vehicle supplies would be constrained and worked with them to time vehicle orders, a company spokesman said.

"That helped businesses adjust," he said.

GM’s U.S. sales to fleet buyers, including commercial customers and rental companies, rose sharply in the second quarter compared with a year earlier, when the pandemic froze deliveries. Still, the auto maker’s fleet sales were about 14% of overall vehicle sales in the second quarter, compared with about 20% before the pandemic.


Ford Motor Co. , one of the largest commercial-vehicle sellers, has canceled production of tens of thousands of pickup trucks and vans since the spring, analysts estimate. Commercial-vehicle sales accounted for about 15% of total U.S. sales in March and April, compared with about 20% in the same period a year earlier, according to research firm Cox Automotive.

Wait times for companies and municipalities that order new vans and trucks have stretched from weeks to months, dealers and fleet operators say.

The sheriff’s office in rural Bingham County, Idaho, ordered a new Ford Expedition last September for its K9 unit. The truck was finally delivered from the factory two months ago but still has to be specially refitted before it can be put into service, said Chief Deputy Jeff Gardner. Looking ahead, he worries how his department will turn over its fleet of trucks and cruisers on schedule and on budget, he said.

It adds a lot of stress to day-to-day operations," Mr. Gardner said.

Some business owners say they are having to settle for whatever they can find, whether or not the vehicle is the best fit.

D. David Dugan, president of Core States Group, an architecture and construction firm, said his business is booming as clients catch up on projects that had been deferred since the pandemic began. The company operates a fleet of roughly 45 vehicles nationwide, mostly pickup trucks.

Mr. Dugan said his company placed some truck orders as far back as last year, but when he asks about them, dealers say the vehicles are sitting on massive lots, awaiting necessary computer chips. Meanwhile, Core States has resorted to buying some of the vehicles it was leasing and its transportation budget has increased 20% to 30%, he said.

In one case, staff flew to Las Vegas from Southern California to find trucks and bought ones with expensive features that weren’t needed, like four-wheel drive, he said.

Even buying the wrong truck feels like a victory right now, Mr. Dugan said.

"I’m happy to get the truck that doesn’t meet my needs and that we paid too much for," he said.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Trump Warns of Civilizational Stakes as Iran Halts Negotiations
Saudi Companies Expand Remote Work Measures Ahead of Iran-Related Security Concerns
Iran Warns of Strikes on Saudi Energy Infrastructure if US Targets Its Facilities
Iran Urges Civilians to Form Human Shields Around Nuclear Sites as Diplomatic Deadline Approaches
Saudi Arabia Raises Oil Prices to Record Premiums Amid Supply Pressures Linked to Iran Conflict
Key Saudi-Bahrain Causeway Closed Amid Heightened Security Concerns Linked to Iran
Formula One Calendar Gap Explained as Fans Await Next Grand Prix
Growing Strain on the Petrodollar System Comes Into Focus Amid Iran Conflict
Reported Strike on Saudi Arabia’s Jubail Complex Raises Global Energy Supply Concerns
FedEx Introduces New Digital Tool to Streamline Imports into Saudi Arabia
Iran Claims Strike on Saudi Arabia’s Jubail Petrochemical Complex Amid Rising Regional Tensions
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
Jordan and Saudi Arabia Declare Absolute Solidarity in Response to Iranian Threats
Saudi Arabia Raises Oil Prices to Record Premium Amid Strong Market Demand
California’s Salton Sea Emerges as Strategic Lithium Hub for Clean Energy Future
Iranian Drone Strike on US Embassy in Saudi Arabia Reportedly Targeted Intelligence Facility
Saudi Deputy Foreign Minister Meets French Embassy Official to Strengthen Bilateral Engagement
Saudi Arabia Calls on United States to Seize Strategic Opportunity to Reshape Middle East
Dating Apps Surge in Saudi Arabia as Social Norms Rapidly Evolve Among Youth
Saudi Arabia Detains Over Fourteen Thousand Illegal Residents in Week-Long Enforcement Drive
Saudi Foreign Minister Engages in Diplomatic Talks with Pakistan, Kuwait and Latvia on Regional Developments
Saudi Arabia Intercepts Cruise Missile as Regional Tensions Intensify
Saudi Stock Market Edges Higher as Tadawul Index Records Modest Gain
Underlying Rivalry Between Saudi Arabia and UAE Persists Despite Temporary Calm
Saudi Arabia’s Non-Oil Sector Contracts in March as Regional Tensions Weigh on Business Activity
Saudi Arabia Unveils Ambition to Establish Prestigious Global Prize Rivaling the Nobel
Saudi Crown Prince to Engage Wall Street in Push for Investment and Economic Expansion
Iran Accuses Saudi Arabia and UAE After Downing of Chinese-Made Drone
Saudi Arabia Condemns Attack on Hospital in Sudan, Calls for Protection of Civilians
Coordinated Drone Strike Targets CIA Facility Within US Embassy in Saudi Arabia
Italy’s Meloni Prioritises Energy Security and Strait of Hormuz Stability During Gulf Tour
Uncertainty Emerges Over Timeline and Direction of Saudi Arabia’s Ambitious Ski Resort Project
UAE and Saudi Arabia Escalate Strategy with Drone Operations Targeting Iran
Trump Delivers Characteristic Remarks on Saudi Crown Prince Amid Intensifying Iran Conflict
Drone Strike on US Embassy in Riyadh Caused Greater Damage Than First Reported
Saudi Arabia Introduces Flexible Solutions for Expired Visas Amid Regional Disruptions
Saudi Arabia’s Online Car Market Accelerates with AI Pricing and Fully Digital Buying Experience
Saudi Arabia Reassesses Defence Strategy as Iranian Drone Threat Drives Shift in Military Partnerships
Drone Strikes Target Saudi Arabia, Kuwait and Bahrain as Regional Conflict Intensifies
Japan and Saudi Arabia Align Efforts to Ease Rising Tensions with Iran
Saudi Crown Prince and Italy’s Meloni Strengthen Strategic Ties in High-Level Talks
SpaceX Explores Potential Five Billion Dollar Investment from Saudi Sovereign Wealth Fund Ahead of IPO
Saudi Arabia Lifts Key Import Barriers to Expand Access for U.S. Beef Exports
Saudi Arabia Enforces Strict Travel Penalties for Visits to Restricted Countries
×