Engine maker
Cummins Inc.
appointed veteran manufacturing executive
Bonnie Fetch
to oversee its global supply chain as shortages of parts and logistics bottlenecks curtail production of heavy-duty trucks and equipment.
Ms. Fetch currently serves as vice president of the Columbus, Ind.-based company’s North America supply chain operations and services. She spent two decades at heavy machinery maker
Caterpillar Inc.
before joining Cummins in 2018.
Ms. Fetch will assume her new role on Feb. 1, succeeding Cummins Vice Chairman
Tony Satterthwaite,
who took over in the interim after Peter Anderson retired last year, the company said.
Equipment makers are straining to meet strong demand for heavy-duty trucks as shortages of semiconductors and other components lead to mounting production backlogs.
Ms. Fetch, whose three decades in manufacturing include leading Caterpillar’s global distribution of aftermarket parts, “is the right person for this role as we continue navigating supply chain challenges,” Cummins President and Chief Operating Officer
Jennifer Rumsey
said in a news release.
Cummins lowered its full-year 2021 revenue outlook in November to 20% annual growth compared with its previous guidance of 20% to 24%, and said supply-chain constraints such as rising materials and logistics costs continued to weigh on its business.
The company faced a roughly “$100 million-a-quarter supply chain costs headwind” in 2021, Jack Kienzler, executive director of investor relations for Cummins, said at a Dec. 2 investor conference. Supply-chain constraints are “tempering how far the industry can go on a production standpoint,” he said.
North American orders for Class 8 trucks, the big rigs that haul freight long distances, rose 139% in December from the previous month but remained 55% below year-earlier levels, according to preliminary data from transportation research firm FTR. It said manufacturers were delaying entering orders because of uncertain supply-chain conditions.
“The current order volume still understates the tremendous demand for new trucks,” Don Ake, FTR’s vice president of commercial vehicles, said in a statement. “The carriers have freight to haul and funds available for new trucks, but OEMs can’t build enough.”
Write to Lydia O’Neal at [email protected]
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