This past racing season was somewhat of a return to normalcy for most tracks and series. Despite some of the cancellations of races on the West Coast in the spring, once the Midwest season got underway most traveling series schedules retained their tradition pre-2020 structure.
This past racing season was somewhat of a return to normalcy for most tracks and series. Despite some of the cancellations of races on the West Coast in the spring, once the Midwest season got underway most traveling series schedules retained their tradition pre-2020 structure.
Thankfully, we saw the return of all of the crown jewel events with no restrictions. Though the majority of the season was relatively normal, for most teams and manufacturers the same cannot be said for this offseason.
Most teams purchase a majority of the parts they will need for the entire upcoming season all at once. The time from November through January is when the bulk of ordering takes place. Purchasing all at once has many advantages such as bulk pricing, lower overall shipping cost, part uniformity and it enables teams to more efficiently assemble and prepare.
Supply-chain shortages began creeping into the motorsports industry during the season, but because most teams already had the parts they needed, the impact was relatively small. This offseason, however, may present some unique challenges for the industry.
To date, the most affected open-wheel supplier has been Hoosier Tire. The management at Hoosier did a great job navigating obstacles such as staff and material shortages to maintain the needed stock of tires throughout the year, but there were times when their inventory was close to depleted.
Certain periods of the year we were limited to the number of tires we could purchase in a night to prevent stockpiling and maintain a level playing field for smaller teams.
Luckily these measures helped to ensure enough tires to go around for everyone. Hopefully, this offseason will provide Hoosier the chance to replenish its inventory and ensure another successful season.
The manufacturers of components used to build and assemble new cars will face some obstacles as the large orders begin to roll in. Components that are manufactured in house should not provide much issue provided the materials used remain in supply.
The challenges come with components that are made up of many parts such as rear ends and steering gears. Many of the parts used in these items are sourced from industrial companies that are not exclusively motorsports manufacturers and could be seeing supply issues. A single backordered item such as a specific bearing or valve that costs only a few dollars, could prevent the fulfillment of a $2,500 component if not available.
Another factor putting a strain on manufacturers is order volume. Supply-chain issues in the U.S. are no secret and are certainly not limited only to the motorsports industry. Customers are aware of this and in an attempt to prevent issues down the road, have increased the sizes of their orders to ensure their own personal inventory is sufficient.
A team that may typically only order one rear end, may now order two, a team that typically orders three may order five and a bigger operation may up its order from six or seven to 10. Many teams also placed their orders earlier to avoid being affected by possible shortages. The increase in volume and timing of orders is creating another layer of challenges for suppliers during this build season.
Engine parts have become another major issue. Lead time on items such as custom pistons or valves have been upward of 10-12 weeks. While larger builders have most of the components they use in stock, smaller builders who order different parts for individual unique engines will most likely face extended turnaround time on rebuilds.
Not only can this create delays but can also interfere with typical cash flow as a builder might be out the money for 90 percent of the parts needed for a rebuild that usually takes four to five weeks waiting for one part that is backordered for months.
One thing that is certain is the motorsports industry is filled with very resourceful and creative minds. If I had to place my money on any industry to most successfully navigate all of these issues, it would be the one filled with competitive racers.
Racers always find a way to get it done and this situation will be no different than any other.