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ELECTRONIC COMPONENT SHORTAGES UPDATE - 2022 AND BEYOND - Truck To Trailer

ELECTRONIC COMPONENT SHORTAGES UPDATE - 2022 AND BEYOND

COMPONENT SHORTAGE: NOVEMBER '21 UPDATE

According to Wired Magazine, demand for semiconductors grew nearly 30% between 2020 and 2021 years, and some companies are seeing a backlog of orders growing well into 2023.

Some major chip manufacturers have announced massive investments to build new and modern chip-manufacturing plants, but that takes years to build and costs billions to accomplish. While some analysts predicted the chip shortage might ease sometimes in 2022 ,those forecasts now appear to be optimistic as international labor shortages, COVID-outbrakes and shipping backlogs have further stressed a market nearing the breaking point. 

COMPONENT SHORTAGE: OCTOBER '21 UPDATE

With multiple industries feeling the impacts of the component shortage, some analysts are predicting relief in sight ... just not until 2023 at the earliest. 

The just-in-time build-to-order pipeline model that the electronics supply chain has been utilizing for over two decades wasn't built to handle the sudden rise in demand for consumer electronics at the beginning of the pandemic. 

Now, fresh rounds of COVID-related shutdowns overseas, mixed with the increased demand for consumer electronics, and an incredible bottleneck in the shipping industry has many worried we may see fewer products on the shelves during this Christmas season. 


JUNE 2021

Electronic component shortages have been a hindrance on booming electronics marketplaces since 2018. While new orders roll in and production remains steady, there simply haven’t been enough capacitors, resistors, and other parts to go around.

After tariffs were imposed on imported Chinese goods and factories were shut down due to the coronavirus, OEMs raced to understand what was ahead for their already-constrained inventory. But, COVID-19 was not the only culprit -- it's actually exposed pre-existing cracks in the supply chain.

Here's why 2022 is shaping up to be another difficult year:

The pandemic shut down a lot of avenues for raw materials and bulk electronic components, leaving manufacturers with half-finished products and idle capacity. Many components come from supply chains in Asia, and since China was ground zero for the coronavirus, the shortages started to affect U.S. manufacturers before the virus hit American soil.

Shortages aren’t the only problem -- so are rising prices. As demand for electronic components rises, the supply dwindles, and costs increase. 

But we're pretty sure we'll be able to get any part you need even if it's a backordered part. Contact Truck To Trailer Store to help you out!

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