Beautiful Virgin Islands

Thursday, Oct 30, 2025

Manufacturing CEO: Demand isn't our problem. Keeping up with it is

Manufacturing CEO: Demand isn't our problem. Keeping up with it is

Sick workers. Computer chip shortages. Supply chain stress.

Carrier Global, like countless other companies right now, is navigating a minefield of challenges to get orders out to its customers.

Absent these operational headaches, the manufacturing giant estimates it would have been able to ship another $200 million to $300 million in products last quarter alone.

"Demand is tremendous," Carrier CEO Dave Gitlin told CNN in a phone interview. "Demand is not our issue. Keeping up with it is."

The constraints facing Carrier, the 106-year-old maker of heating, ventilating and air conditioning (HVAC) systems, encapsulate what's wrong with today's economy. From food and energy to cars and building materials, supply simply can't keep up with demand. To combat these issues, Carrier, like many other companies, is raising prices.

Carrier is assuming that the elevated levels of inflation from late 2021 will continue through this year. That amounts to $1 billion in cost increases, which the company plans to fully cover by raising its prices by the same amount. This will translate to higher prices for HVAC systems for consumers and businesses.

Gitlin also acknowledged considerable uncertainty about the path of inflation. "The truth is, we don't know when it will come down — or by how much," he said.

Despite the obstacles, on Tuesday Carrier reported a 14% jump in adjusted operating profit to $517 million. In a presentation to shareholders, the company said "continued inflationary pressure" was partially offset by "higher-than-expected" price hikes.

'We haven't seen any marked improvement'


The same computer chip shortage that has derailed auto manufacturing and sent car prices soaring is also impacting Carrier, which broke away from United Technologies in 2020 to once again operate as an independent company.

"The biggest challenge we have right now is on the chip side," Gitlin said. "We haven't seen any marked improvement there."

The Carrier boss expects the computer chip shortage to ease during the second half of this year and more so in 2023. In the meantime, the company has negotiated directly with chip makers to secure supply.

Carrier has struggled to get the chips it needs for its more profitable systems, which require more advanced components.

"The more intelligent the product line, the higher the margin," Gitlin said, and the "most challenging supply issues" have impacted the advanced computer chips, he added.

Worker absenteeism eases as Omicron fades


Logistics costs "remain high but they don't seem to be getting higher," he said, and seem to be "plateauing at elevated levels."

On the positive side, Gitlin said Carrier is seeing "a lot of improvement" with worker absenteeism at its facilities around the world in the past few weeks as Covid rates tumble.

Carrier and other US companies are raising wages to retain employees and attract new ones in what is now a red-hot jobs market. "There's definitely a battle for talent, especially in the United States," Gitlin said. "We've had to adjust accordingly."

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
UK and Vietnam Sign Landmark Migration Deal to Fast-Track Returns of Irregular Arrivals
UK Drug-Pricing Overhaul Essential for Life-Sciences Ambition, Says GSK Chief
Princesses Beatrice and Eugenie Temporarily Leave the UK Amid Their Parents’ Royal Fallout
UK Weighs Early End to Oil and Gas Windfall Tax as Reeves Seeks Investment Commitments
UK Retail Inflation Slows as Shop Prices Fall for First Time Since Spring
Next Raises Full-Year Profit Guidance After Strong Third-Quarter Performance
Reform UK’s Lee Anderson Admits to 'Gaming' Benefits System While Advocating Crackdown
United States and South Korea Conclude Major Trade Accord Worth $350 Billion
Hurricane Melissa Strikes Cuba After Devastating Jamaica With Record Winds
Vice President Vance to Headline Turning Point USA Campus Event at Ole Miss
U.S. Targets Maritime Narco-Routes While Border Pressure to Mexico Remains Limited
Bill Gates at 70: “I Have a Real Fear of Artificial Intelligence – and Also Regret”
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Amazon Announces 14 000 Corporate Job Cuts as AI Investment Accelerates
UK Shop Prices Fall for First Time Since March, Food Leads the Decline
London Stock Exchange Group ADR (LNSTY) Earns Zacks Rank #1 Upgrade on Rising Earnings Outlook
Soap legend Tony Adams, long-time star of Crossroads, dies at 84
Rachel Reeves Signals Tax Increases Ahead of November Budget Amid £20-50 Billion Fiscal Gap
NatWest Past Gains of 314% Spotlight Opportunity — But Some Key Risks Remain
UK Launches ‘Golden Age’ of Nuclear with £38 Billion Sizewell C Approval
UK Announces £1.08 Billion Budget for Offshore Wind Auction to Boost 2030 Capacity
UK Seeks Steel Alliance with EU and US to Counter China’s Over-Capacity
UK Struggles to Balance China as Both Strategic Threat and Valued Trading Partner
Argentina’s Markets Surge as Milei’s Party Secures Major Win
British Journalist Sami Hamdi Detained by U.S. Authorities After Visa Revocation Amid Israel-Gaza Commentary
King Charles Unveils UK’s First LGBT+ Armed Forces Memorial at National Memorial Arboretum
At ninety-two and re-elected: Paul Biya secures eighth term in Cameroon amid unrest
Racist Incidents Against UK Nurses Surge by 55%
UK Chancellor Rachel Reeves Cites Shared Concerns With Trump Administration as Foundation for Early US-UK Trade Deal
Essentra plc: A Closer Look at a UK ‘Penny Stock’ Opportunity Amid Market Weakness
U.S. and China Near Deal to Avert Rare-Earth Export Controls Ahead of Trump-Xi Summit
Justin time: Justin Herbert Shields Madison Beer with Impressive Reflex at Lakers Game
Russia’s President Putin Declares Burevestnik Nuclear Cruise Missile Ready for Deployment
Giuffre’s Memoir Alleges Maxwell Claimed Sexual Act with Clooney
House Republicans Move to Strip NYC Mayoral Front-Runner Zohran Mamdani of U.S. Citizenship
Record-High Spoiled Ballots Signal Voter Discontent in Ireland’s 2025 Presidential Election
Philippines’ Taal Volcano Erupts Overnight with 2.4 km Ash Plume
Albania’s Virtual AI 'Minister' Diella Set to 'Birth' Eighty-Three Digital Assistants for MPs
Tesla Unveils Vision for Optimus V3 as ‘Biggest Product of All Time’, Including Surgical Capabilities
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
Convicted Sex Offender Mistakenly Freed by UK Prison Service Arrested in London
United States and China Begin Constructive Trade Negotiations Ahead of Trump–Xi Summit
U.S. Treasury Sanctions Colombia’s President Gustavo Petro over Drug-Trafficking Allegations
Miss USA Crowns Nebraska’s Audrey Eckert Amid Leadership Overhaul
‘I Am Not Done’: Kamala Harris Signals Possible 2028 White House Run
NBA Faces Integrity Crisis After Mass Arrests in Gambling Scandal
Swift Heist at the Louvre Sees Eight French Crown Jewels Stolen in Under Seven Minutes
U.S. Halts Trade Talks with Canada After Ontario Ad Using Reagan Voice Triggers Diplomatic Fallout
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
×