Global Supply Chain Issues Continue

Global Supply Chain Issues Continue

Unfortunately, global supply chain issues and general hardware shortages are expected to continue into 2022.

As we noted in the summer, ongoing supply chain issues continue to affect the availability of vital business hardware.  The cause is a confluence of both demand and supply chain shocks including a global chip shortage, labor shortages, manufacturing disruptions from COVID, and higher demand.  Independent of the cause, the impacts are continuing to reverberate throughout the global economy.  At CSP, we are feeling the effects via an inability to quickly procure important hardware.

Manufacturers that rely on these components (Lenovo, Dell, HP, Cisco, etc..) are anticipating delays in the fulfillment of new hardware and products. They expect the effects of the shortage to last at least into 2022.

Please prepare for potential delays and longer-than-normal lead times for the hardware.  Whether you just need spares or are doing a complete refresh, we would humbly request for you to plan ahead.

Supply Chain Delays And Chip Shortages—What’s Causing All The Trouble?

While chip manufacturers fail to produce a sufficient supply of these key components, prices will inevitably go up. TSMC plans to hike its prices in line with the limited amount of components they are able to produce.

This has resulted in a bidding war among major manufacturers. As globally active brands like Toyota and Apple compete for vital components, they’ll have to pay much higher prices. Add to that increases in shipping costs and higher wages for labor, along with inflations, and you have costs continuing to climb.  Those expenses will be passed along to consumers like you.

While prices may be high now, they’re only bound to increase over the next year. As the shortage continues and demand continues to climb, prices will increase in kind. That’s why you need to start placing orders now for the hardware you’ll need next year and the year after that. The longer you wait, the more it will cost you.

Need Expert Assistance With Hardware Procurement?

While you may not need new hardware right now, you will eventually, and the sooner you begin planning, the better. The CSP team will help—we can assess and determine the state of your current hardware, and help you plan ahead.

While there are no guarantees in terms of availability of supply, the more foresight you have in this process, the smoother it will be. Thanks again for your patience.

If you have any questions whatsoever, don’t hesitate to get in touch with our team.