How would the port strike impact Michigan's auto industry? Experts weigh in.
(CBS DETROIT) - Ports across the east and gulf coasts have shut down as the strike of 45,000 dockworkers wraps up the second day Wednesday night.
The strike could eventually impact food and goods, but depending on how long it lasts, it could also impact the auto industry.
Experts said consumers should not overreact. Any impacts will not be like the supply chain issues consumers saw in 2020.
However, if the strike lasts two or three weeks, it could have bigger impacts, including on autoworkers and those looking to buy or repair a car.
Jason Miller, a supply chain management professor at Michigan State University, said Michigan's auto sector isn't as exposed as other parts of the country.
"We are far less affected than, let's say, the German auto plants down in South Carolina and Alabama," Miller said.
Miller said that in Michigan, most auto imports come from other parts of the U.S. or Canada. Imports from China come through ports on the West Coast that aren't impacted by the strike.
But he said if the strike lasts for two or three weeks, U.S. autoworkers might start feeling the impacts.
"If we're starting to see BMW or Mercedes say, 'Hey, we are going to have to start shutting off a shift, we're not going to be able to produce these vehicles. We're going to put people on a temporary layoff.' And that starts cascading in the south, especially for the auto parts suppliers down there, which cascades to steel, and further upstream," said Miller.
For those looking to buy a car, experts said there is ample inventory right now.
"Especially the European brands that are coming on mostly from the East Coast. We believe they have built up enough inventory on the lots that are not going to have customers pinched right away. Where it could start to hurt us is parts," said Erin Keating, an executive analyst with Cox Automotive.
Keating said parts could eventually be delayed at plants and dealerships, but adds that manufacturers knew this strike was a possibility, and had prepared.
"If anything, we might see some congestion happening interstate, with getting things moved around because so much has come in coming early and because things are now coming in from the West Coast. But as consumers are concerned, get to the dealership and do business as usual. I'm sure they'd be happy to see you," she said.
Miller said consumers need not worry at the moment, but he is keeping his eye on Oct. 14. He said if the strike isn't close to resolving, importers will have to change their plans. More shipments will be sent to the West Coast, but he said only about 10-15% can be diverted there before they get overwhelmed.
