Although a global recovery is beginning to be felt as far as business and companies are concerned, another problem has emerged, affecting various industries. We are talking about the global shortage of chips, that is, semiconductors, essential in Digital Signage projects.
The global economy is recovering from the COVID-19 pandemic, with the result that supply chains are experiencing unprecedented shortages. This, in turn, is resulting in rapidly rising prices for key components.
With technological advancement, chips have spread across all industries and are used by us on a daily basis and all the time, namely in computers, cars, televisions, in short, in an infinite number of applications.
However, a growing number of semiconductor manufacturers around the world are having problems securing the supply of these components, delaying their production and delivery and raising prices. The various hardware components, central to Digital Signage projects, are also being affected by this crisis.
Now, this shortage of semiconductors has several associated causes. First of all, the pandemic slowed down the production of these components and many factories even had to close. However, this was not the main cause, as there was a great demand for these products.
As people upgraded and spent more time at home due to confinement, a growing demand for electronics was felt. In addition, manufacturers were affected by a series of events that disrupted supply, notably the disagreements between the US and China. In China, the trade war contributed to a slowdown in the pace of economic and industrial production growth, which was already declining. Many american companies have shifted supply chains to other parts of Asia, bringing fears that the trade war would lead to an economic ‘decoupling’ between the US and China.
These conditions continue to worsen, and there are also greater challenges related to reduced air capacity and slowing down ports in Europe and the US, also resulting in more delays and higher transport prices for forwarders.
Like other industries, Digital Signage companies have also felt this shortage of chips as well as rising prices.
This way, the main problems of Digital Signage end up being the large displays and the semiconductors, responsible for the reproduction of multimedia contents in the displays.
Therefore, PARTTEAM & OEMKIOSKS recommends planning ahead, seeking, if necessary, alternative solutions that are viable. The important thing is that there is transparency between companies and their clients and partners.
The answer from PARTTEAM & OEMKIOSKS
In the face of changing component availability, rising prices and even global challenges concerning shipping, instability is felt in the global supply chain.
PARTTEAM & OEMKIOSKS, foreseeing this situation to some extent, has prepared adequately and placed advance orders, as well as stockpiled sufficient stock to handle ongoing and possible projects. However, it is likely that it will not be able to avoid price adjustments on some of its products.
The main changes caused by this situation are summarized in the following points:
- PARTTEAM & OEMKIOSKS price lists reflect a price increase;
- New proposals and quotations will reflect these new prices;
- Orders for proposals or contracts that have already been sent, but are not yet formalized, will suffer a price impact.
With all of the above, this impact has an influence not only on the prices of components, but also on their delivery times. There could be delays in the delivery times of the final products.
This current supply situation is extraordinary and puts us under great stress. So we understand that these are unforeseen but necessary situations. And only by working in true partnership can we all get through this phase.
With the semiconductor market severely affected, price revision is inevitable, hence the importance of keeping in touch with our clients, who need to be informed.
Therefore, PARTTEAM & OEMKIOSKS will do everything to ensure that there is regular communication between the company and customers and partners. Grateful for the understanding and partnership during these unstable and complex times, PARTTEAM & OEMKIOSKS is keen to emphasize that as soon as possible it will adapt the prices and deadlines to another reality more beneficial to all.
PARTTEAM & OEMKIOSKS works constantly to guarantee the availability of products in the different industries and sectors in which it operates. Thanks to the wide range of our product portfolio and, in case of delays in supply, our team will always try to ensure the availability of alternative models suitable for the implementation of projects.