What does the global chip shortage mean for your business?

I’m sure you’ve heard of the global chip shortage, right? To put it simply there just aren’t enough chips being made for all the devices that need them.

These days pretty much all devices being made have a chip integrated into them somewhere, even your electric toothbrush!

The shortage started during the pandemic as production fell due to lockdowns and illness, whilst demand went up, very sharply.

Other events since have made it worse, including extreme weather, the Ukraine war and a factory fire.

But could it, and will it affect your business? In a word… yes.

Some of the technology you need to run your business isn’t available quickly.

It might be easy to get hold of many laptops right now, but that wasn’t always the case, and even now desktops can be tricky to get hold of. Other devices used behind the scenes – such as network switches – are in short supply, and economics teaches us that when products are in short supply inflation kicks in and prices start to go up.

We’ve seen this happen with laptops when the national lockdown came into force, and whilst laptop prices are reducing now, its no where near the rate at which the prices went up.

If you are thinking of upgrading or adding new IT kit into your office, then our advice is to talk to your technology partner as soon as possible as the lead time on some equipment can be as much as 6 weeks currently.

Of course, we are here to help with any of your procurement needs. Give us a call.