Computer chips, semiconductors… the things that make tech ‘go’. Not the first thing you would think to be impacted by the COVID-19 crisis that is currently in our lives. However, it’s what started the domino effect that is now constraining stock availability to a to point where even getting hold of a laptop dock is a struggle.

It does, however spread further than this – the chip shortage will affect less suspecting appliances such as tumble dryers or electric toothbrushes. It also impacts industries like car manufacturers who can’t complete their products without these crucial components. As an example of how this is a domino effect, car rental companies will be affected by this due to not being able to get new cars as they need them. The supply just can’t keep up with demand so, not only are there massive wait times on getting any stock, but the prices of the items are also much higher. Apple has already started to stagger the release of their iPhone to account for the limited chip supply.

How did this happen?

When COVID started and staff were sent to work from home remotely, it caused a huge increase in demand for PCs, laptops, phones etc so the staff could work effectively. It also meant that those who were in lockdown or preferred to social distance invested in other forms of electronic entertainment, for example, purchasing TVs, games consoles etc. This meant that the demand for stock soared. Consequently the demand for the semiconductors that are integral to the production of these items ran thin and chip manufacturers weren’t prepared to meet the demand.

How does it affect you?

Well, the above should be an indicator of what will become scarcer the longer this goes on. However, if you are a business that utilises technology, it will be worth noting that hardware such as PCs, laptops, monitors, servers, HDDs/SSDs, printers… (the list goes on) will be either almost impossible to get hold of or have significantly long wait times. With EOFY coming up, it would be worth getting your orders in now for any potential devices you might require before the end of June. Also giving your IT team a long enough lead time to be able to source the stock for you will ensure that you won’t be stressing about your next new starter not having a machine when they start in 2 days.

It is likely this shortage will extend until at least the end of the second quarter 2022. So getting into the rhythm of proactive planning for changes or new staff along with budgeting for slightly more expensive gear will be beneficial not only for your company but will also allow you to service your clients.

Call us today to start an action plan on your EOFY needs!