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WEST LAFAYETTE, IND –Due to the Francis Scott Key Bridge collapsing in Baltimore, it is still being determined when the port will reopen. However, the bridge will be out of commission for a significant time.

A Purdue University professor predicts that the bridge collapse will reduce car imports from Europe and the Middle East.

“We know the automotive industry got hit hard during COVID with the microchip shortage,” said Amy David, a Clinical Professor of Management in the Mitchell E. Daniels, Jr. School of Business at Purdue University. “It’s in some ways still coming out of that. There’s not a lot of inventory sitting around, and inventory is usually what would buffer us against a disruption like this.”

David explained that due to the bridge collapse, Hoosiers should anticipate longer waits for deliveries, fewer cars available on dealership lots, and a greater need for preordering vehicles ahead of time.

Regarding how this situation affects the Midwest or our local area, the supply chain shortage could actually present an opportunity for businesses to capture more of the market.

“The flipside is that car factories, producers who are relying on engines or other parts from Europe are going to be on the other side of the equation where they will be delayed.”