The last few years have certainly been challenging; particularly in regard to the impacts that COVID has had upon our daily lives. There are also many knock-on effects which are only now beginning to come to light. One perfect example can be seen in the so-called microchip shortage that is beginning to take its toll on the average consumer. How did we get here? What effects might be felt in the not-so-distant future? Are there any ways in which we can adapt? Each of these questions deserves a closer look.
How Did the Chip Shortage Come to Pass?
Semiconductors are utilised within countless modern electronic products. From home appliances and computers to smartphones and vehicles, their presence is impossible to deny. The only issue is that the production process is quite complicated. This presented a problem when demand began to outstrip supply (1) in recent times.
We then need to take the recent global health crisis into account. As home-based employment became commonplace, even more consumers desired modern electronic products in order to live comfortably. Not only did this scenario place a massive amount of strain upon the entire sector, but it was impossible to construct factories at a pace in accordance with such demands. We can now begin to see why microchips and materials related to semiconductors are in a precarious position.
How Will These Changes Impact the Average Consumer?
The answer to this question will partially depend upon the types of electronics and gadgets which you own. Still, the chances are high that you could begin to feel the pinch due to bottlenecks within the supply chain sector. For instance, it may be more difficult to purchase the latest household appliances or a new smartphone at an affordable price.
Businesses might also encounter some issues. This is especially relevant for those organisations which need to purchase new computers or upgrade their existing in-house hardware. While the products themselves may still be available, the associated costs could very well render them prohibitively expensive.
What Steps Can be Taken?
Is there any way to alleviate the current chip shortage? Unfortunately, most experts believe that we will simply have to watch and wait. As the world is now emerging from the recent pandemic, the chances are high that production capacities will begin to increase (as well as the number of factories devoted to the production of microchips). Patience could therefore represent the most appropriate virtue to embrace.
For example, consumers can delay purchasing a new appliance until prices begin to drop. They may also be able to search for similar second-hand items online. Businesses could likewise adopt longer lead times when committing to large purchases. Those who are looking for a new car might instead employ third-party valuation services in order to appreciate the current market value of their vehicle. It will then be easier to understand how much liquidity they possess in order to better accommodate budgetary concerns.
This Too Shall Pass
Although the chip shortage is making news in recent times, a sizeable proportion of professionals believe that these doldrums may begin to ease during the latter half of 2022 (2). There are still plenty of ways in which consumers and businesses can endure these times until the industry begins to expand once again.
For example, please take a moment to contact the team at Sell My Car Essex in order obtain a free valuation of your vehicle in a matter of minutes if you are considering an upgrade. This chip shortage will come to an end and hopefully, a sense of normalcy can thereafter return.