RE:RE RE; TTCThe busses will be built irregardless of chip shortage. That will be the last component to go in before delivery to customer. Shouldn't affect GSI in my opinion.
Supply Chain Disruption
Global supply chains remain disrupted, with a shortage of microprocessors being a primary driver, impacting manufacturers around the world. NFI’s production rates in 2021 and year-to-date in 2022 have been significantly impacted by these macro challenges. NFI was recently notified by the Company’s primary North American multiplexing control module supplier that it will be unable to provide consistent module supply in the second and third quarters of 2022 due to microprocessor shortages. The control module is a critical component for vehicle operations, and this shortage will impair NFI’s production of North American transit buses. NFI is working with alternative suppliers and other microprocessor sources to address this disruption and assist in production recovery plans. The Company has seen some success from those efforts but anticipates that it will need to lower production at select facilities and build and hold a number of vehicles in inventory in the second and third quarters. This is expected to grow inventory by as much as $200 million on a temporary basis until modules can be installed and vehicles can be safely delivered to customers.
This module disruption will not impact NFI’s North American aftermarket parts businesses or its international operations.
Market Demand
During the first quarter of 2022, NFI continued to see strong demand for its products and services driven by record investments in public transit in Canada, the United States, and the United Kingdom. Highlights include:
- NFI received new firm and option orders of 1,407 EUs in the quarter and had an ending total backlog of 8,908 EUs, representing 4% year-over-year growth.
- 4,919 EUs of new firm and option orders in the last twelve months ending April 2, 2022, an increase of 45% when compared to the same four quarter period ending March 28, 2021.
- North American bid universe1 at 26,371 EUs, up 12% year-over-year, with 5,562 EUs coming from active procurements; active bids up 18% year-over-year.
- The Federal Transit Administration in the United States launched the $1.1 billion Low or No Emission competitive grant program for low and zero-emission buses for 2022, a 495% increase from the 2021 grant program.
Due to NFI’s growing backlog, expected new orders, and continued strong market demand, NFI is well-positioned to achieve significantly improved financial performance in late 2022 and into 2023 as supply chain reliability and components availability are expected to improve. To ensure NFI continues to deliver for its customers and maintains the ability to recover and capitalize on this strong demand, NFI intends to maintain staffing at appropriate levels as it navigates through the near-term supply chain challenges.
ramman1 wrote: Really does not matter a bit what the rider % is or will be . ------ TTC, just like Septa , and all the others,plans ahead ,regardless of 57%. or 65% level. ------- Bottom line: All these transit authorities are hooked up with a supplier and will (not change) unless a very important roadblock exists. ------ TTC may very well like our products in the pilot program ,but will NEVER change suppliers, ''UNLESS; that current supplier cannot provide the service. --Same with Septa/Gatekeeper : Septa will always give precedent to Gatekeeper ,''unless'' Gatekeeper cannot supply the request . ---------- Onto the more pressing issue ::, the inability of NFI to supply busses ordered in a timely fashion. YES: Septa has earmarked Gatekeeper for the 3.9 mil (u.s) CCT contract, however if the new bus arrivals are backed up 2 years ,the funds will not be released. Yes: the funds are there, ''2 years from now''. No announcements can be made .--No different going forward. I think Gatekeeper will be getting the IT contract and others going forward, however if the NFI busses are backed up 2 years , ''thats your time frame''. --