July 4, 2022

Supply Chain Shortages Make It Hard to Buy Tech

As you probably already heard, supply chain issues are affecting many different industries. This article highlights the issues around the supply chain that are causing issues within the IT industry.

Intel’s chief warned the chip shortage could last into 2023. The founder of Dell said even low end components are proving difficult to source. In a Reuters report, Michael Dell said that “the shortage will probably continue for a few years” and that “even if chip factories are built all over the world, it takes time.”

Marvell Technologies, which develops and produces semiconductors used by others int he industry are telling their direct customers there is a 52-week delivery time.

The start of COVID and working from home is behind us so why is there still a shortage? Some reasons are:

  • COVID is still creating nightmares as just a few weeks ago, the major Chinese tech hub of Shenzhen, went into lockdown due to a major out break of the virus.
  • International ports are also struggling to stay open amidst COVID outbreaks. For example in March, trucks could not reach container ships at the Chinese port city of Yantian due to lockdown. The port was closed last June for a week and it took months to deal with the shipping backlog.
  • Most manufacturers around the world depend on components manufactured in China. Thus any issues with China impacts manufacturers across the world.
  • People hoarding products to take advantage of supply-chain shortfalls.
  • Tech manufacturers are not the only ones needing semiconductors and chips. Chips are needed by a lot of other products such as smartphones, cars, medical equipment, televisions and all other electronics).
  • The war in Ukraine is diverting chips and equipment originally meant for tech products into weapons and arms.

Unfortunately a limited supply of goods causes price increases as this is a basic supply and demand issue. Not only is technology more expensive, but it’s also going to take longer to reach you.

What can you do? Plan ahead. If you have been thinking about a hardware upgrade, do not wait to make your purchase. Look around, order now and anticipate that there may be delays and other buying issues such as not being able to get the exact models needed.

You should also prioritise the maintenance of your existing technology. You can’t risk a critical piece of your network failing and then having to wait weeks (months even) for a replacement. Be on the front foot and if a particular piece of technology is crucial for your business considering buying a spare now.

Working with a proactive IT service provider can help. Our experts can do preventative maintenance and support your long-term IT strategic planning. Our established vendor relationships could also help us access the technology you need. Let us take care of your short-term and future technology issues. Contact us today for a free no obligation meeting.

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