The Global Chip Shortage
How is the global chip shortage affecting your business?
Over the last 2 years, the world has struggled with the massive chip shortage. Its not just tech businesses that are being hurt by this.
Its not just the laptops and desktops that we use, its the appliances at home and our cars. you will struggle to find an electronic device that operates without a chip. The ongoing shortage has the ability to start affecting our everyday lives.
The shortage has been going on since 2020, the year that just keeps on giving. Production fell due to Covid infections affecting production, but demand went up as we all went to work from home. The war in the Ukraine has not help, along with a huge factory fire and extreme weather conditions across the world (not just here).
We have been told that upping production of chips is not simple or easy. Building a new factory is huge investment and takes years, as there are very specific needs for the production. That is someone’s else’s issues, but what does it mean for you business?
Realistically, the affect is that you need to be planning ahead. Some of the tech you may need in your business is going to be low in stock. being able to buy bulk versions of the same devices, desktop or laptop, is going to be difficult compared to buying 1-3 units. and the price is likely to be higher as well.
Essential kit that runs in the background, like network switches, routers, access points, which you probably don’t consider too much, are extremely difficult to locate. We are seeing lead time at almost 12 months on these.
So many of us are trying to grow our business, so planning ahead is more important than ever. The shortage is expected to last into next year and likely to be beyond. Having a new starter come in and to be waiting for a device, is not great and neither is buying a device that is sub standard and having to replace it quickly either.
Why not run you growth plans by us, we are here to help and can provide the consultancy around those plans and what may be needed.