According to Eric Neal, executive director for Global Off-Highway at Cummins, supply chain constraints and transport problems resulted in lower levels of business for the fourth quarter of 2021.
The firm’s engine business performed well; however, with turnover of $10 billion for 2021, an increase of 24% from 2020. Turnover for the fourth quarter was also good for the engine business, increasing 4% from 2020 to $2.4 billion.
Neal commented: “Our sales would’ve been larger,” explaining that the supply chain issues and logistics issues constrained the firm’s performance. He added: “We’ve had lots of labour disruptions,” explaining that the GOVID 19 pandemic has resulted in many personnel being unavailable due to illness."
While Cummins is now managing to work around these issues, Neal said that many of the firm’s suppliers are now feeling pressures. Certain components are in short supply, particularly electronic chips, although there are also shortages of other parts at times.
Meanwhile, the firm is investing heavily in its alternative power systems. These include fuel agnostic engines able to run on a range of fuels, such as methane, propane, diesel, bio-diesel and hydrogen. The company continues its research and development work into fuel cells and green hydrogen production while expanding its electric drives and battery systems.
However, the firm still sees strong potential for (clean) diesel technology. And Neal added, “Diesel engines will be the bulk of Cummins’ business for at least ten years.”
