What does the global chip shortage mean for your business?

global chip shortage

You may have heard references lately to a global chip shortage. 

Its effects are being felt throughout the tech world as production, which slowed in 2020 as the Covid-19 pandemic took hold, continues to fall short of demand. 

But it’s not just the tech industry feeling the strain. 

Chips are built into our phones, our cars, our medical devices, even our washers and dryers. They’ve been woven into the fabric of modern life. 

Two years on from the beginning of the pandemic, you might think a shortfall should have been dealt with but increasing production is difficult. The required factories take years to build. And other external factors, like the war in Ukraine and extreme weather are increasing the strain. 

But what does all this mean for your business? What should you be doing? 

The short answer is you need to be thinking ahead. 

Some of the technology required to run your business may be becoming scarce. 

For instance, you might be able to acquire one or two laptops with minimal inconvenience but ordering ten or twenty might land you in a long backorder queue. 

Less obviously, many of the devices that keep your business up and running in the background, such as network switches and routers are currently in short supply. 

This doesn’t just affect your ability to respond if problems arise with your existing technology, it means that to expand or modify your business’s IT systems may take much longer than usual. 

The shortage is expected to run into next year, possibly even longer. 

So if you’re striving for business growth during these uncertain times, it’s more important than ever that you plan ahead. 

Would you like to talk about your plans for business growth and how the global chip shortage could affect them? Call us. We’re happy to help.