That the world is struggling with a massive chip shortage is not news to anyone.
But it’s not just tech companies that are feeling its impact. Many things we use daily contain a chip; laptops, desktops, for sure, but also household appliances and cars. It can sometimes take months to acquire any of these items.
The shortages started in 2020 (ah, that year really was a gift, wasn’t it?) and is still disrupting our lives.
The pandemic and the increased demand for mobile devices were the initial causes of many shortages. However, the war in Ukraine (home to the two leading suppliers of neon, which produce about half the world’s supply of the key ingredient for making microchips) and the factory fire at ASLM Holding in Germany have exacerbated the situation significantly.
“Companies elsewhere could initiate neon production, but it would take nine months to two years to ramp up”, according to Richard Barnett, chief marketing officer of Supplyframe, which provides market intelligence to companies across the global electronics sectors.
What does all this mean for your business?
Essentially it means you need to plan further ahead than usual. Some of the technology you need to run your business may be in short supply when you realize you need new or replacement hardware. Getting large numbers of the same laptop might be difficult compared to getting just 2 or 3.
And some essential devices you rarely think about, such as network switches, are currently difficult to get but no less necessary for the smooth functioning of your business operations.
As you push your business towards increased growth, planning and implementing alternative strategies is more crucial than ever; industry experts expect the shortage to last into next year … and it could be even longer.
If you’re looking for suggestions, please feel free to reach out and run your growth plans by us. We can advise you on the best options and help you determine what needs to be ordered and when.
Or maybe it is time to do what many others have done since the pandemic and make that, perhaps somewhat dreaded, move to the cloud. This past year has proven that this technology is ready for the big leagues.
Get in touch with us today. No obligations, no strings attached, just a conversation to see if we might be able to help.
