{"id":20457,"date":"2022-09-15T16:08:00","date_gmt":"2022-09-15T20:08:00","guid":{"rendered":"https:\/\/a2globalelectronics.com\/?p=20457"},"modified":"2022-10-13T10:44:36","modified_gmt":"2022-10-13T14:44:36","slug":"world-events-continue-to-impact-electronic-components-supply-chains","status":"publish","type":"post","link":"https:\/\/a2globalelectronics.com\/ja\/shortage-mitigation\/world-events-continue-to-impact-electronic-components-supply-chains\/","title":{"rendered":"World Events Continue To Impact Electronic Components Supply Chains"},"content":{"rendered":"\n\n\n\n\n\n\n[et_pb_section fb_built=”1″ _builder_version=”4.16.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” module_alignment=”center” custom_padding=”|||0px||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.16.0″ _module_preset=”default” custom_padding=”|||1px||” inline_fonts=”Arial,Verdana” global_colors_info=”{}”]
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As electronic component manufacturers continue to make their way out of a shortage market, ongoing COVID-19 lockdowns threaten that stability \u2014 even in the face of decreased consumer demand. What is next for taxed supply chains worldwide? <\/o:p><\/span><\/b><\/h2>\n<\/div>\n
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From the COVID-19 pandemic to geopolitical tensions to increased demand for goods, supply chain shortages have become the new normal. The electronic components market, in particular, has been so significantly impacted by these compounding factors that governments across the world have taken notice. In fact, <\/span>earlier this year<\/a> the U.S. Government pledged more than $54B to shore up its domestic supply of chips. But in this ever-changing global landscape, it remains crucial to mitigate your risk in the face of uncertainty. In this article, we\u2019ll share 3 strategies to minimize the impact of electronic component supply chain challenges.<\/span><\/p>\n<\/div>\n


<\/span><\/b>The lockdown effect<\/b><\/span><\/h3>\n

As countries continue to experience waves of new COVID-19 variants, implementation and rollback of lockdown regulations are impacting production in a major way. In China, where the country has employed a \u201czero-COVID\u201d policy, production <\/span>has radically halted<\/span><\/a>. Major Chinese trading hubs have enforced policies whereby employees must test negative before returning to work. Some companies have even responded by utilizing <\/span>\u201cclosed-loop\u201d systems<\/span><\/a>, which force factory workers to live onsite to curb rates of infection. But between lockdown regulations and the virus itself (as well as hard-to-predict weather), global supply is suffering. In fact, China\u2019s industrial production has been <\/span>declining since July<\/span><\/a>, resulting in a failure to reach prior growth expectations. The impacts of which are far-reaching. <\/o:p><\/span><\/p>\n

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<\/span><\/b>Consumer habits<\/span><\/b><\/span><\/h3>\n

In addition to unpredictable electronic components supply patterns, consumer demand has also proven difficult to navigate. While United States consumers have maintained their spending habits, if not increased them, the same <\/span>cannot be said globally. And even in the US, discretionary categories, such as clothing and <\/span>technology, have <\/span>taken a hit<\/span><\/a> in the wake of COVID-19 and <\/span>increasing fuel prices<\/span><\/a> as a result of the European conflict. Between an unpredictable political, economic, and environmental climate, consumers are being forced to make difficult decisions, leaving production in straits for both demand and <\/i>supply. That means your organizational response must be willing to meet the moment.\u00a0<\/span><\/o:p><\/p>\n<\/div>\n

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 <\/p>\n<\/div>[\/et_pb_text][et_pb_video src=”https:\/\/youtu.be\/HeQV8FDbmiU” _builder_version=”4.18.0″ _module_preset=”default” width=”59.9%” min_height=”284.6px” custom_margin=”|||60px||” custom_padding=”|1px|0px|0px||” global_colors_info=”{}”][\/et_pb_video][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” inline_fonts=”Arial” global_colors_info=”{}”]

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Possible strategies<\/span><\/b><\/span> <\/span><\/b><\/h3>\n

As we discussed <\/span>last week<\/span><\/a>, a crucial approach to shortage mitigation is diversifying your supply. This strategy will remain relevant so long as manufacturing trends continue to be unpredictable. Even <\/span>companies like Apple<\/span><\/a> are looking to diversify from their China supply and hedging their bets with investments in India. But supply diversification isn\u2019t the only way you can prepare for supply chain instability. Here are three additional strategies to mitigate electronic supply chain shortage:<\/o:p><\/b><\/span><\/p>\n

<\/span><\/p>\n<\/div>\n

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1. Calculated AI Implementation<\/o:p><\/b><\/h4>\n<\/div>\n
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One critical aspect of preparing for future supply changes is implementing AI for management oversight. Whereas your technology options are virtually limitless, it remains critically important to strategically incorporate AI. Instead of investing in technology as a cure-all, try mapping a specific way AI could help your business. Some examples could include <\/span>using AI for factory floor management<\/span><\/a>, package consolidation, or demand forecasting.\u00a0<\/span><\/o:p><\/p>\n

<\/span><\/p>\n<\/div>\n

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2. Regular Global Risk Assessment\u00a0<\/o:p><\/b><\/h4>\n<\/div>\n
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Although there isn\u2019t a simple \u201cHow-To\u201d guide for solving your individual supply chain issues, there are several ways to stay as up-to-date as possible. In other words, CEOs and other C-Suite members must make a practice of analyzing and accounting for potential issues. While both man-made and natural disasters will introduce tumult into the global economy, all you can focus on is what is in your control\u2014chief of which <\/span>is your reaction<\/span><\/a>. This is why it is a good idea to further invest in AI and people-powered systems for information acquisition. Now, more than ever, it\u2019s important to be thinking ahead on a global scale.<\/span><\/p>\n

<\/o:p><\/p>\n<\/div>\n

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3. Cyber Security<\/o:p><\/b><\/h4>\n<\/div>\n
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While it\u2019s easy to focus on the global supply chain issues, it\u2019s important not to lose sight of potential local issues as well. Companies throughout the world continue to suffer from <\/span>ransomware attacks and data threats<\/span><\/a>. There is a misconception that cybersecurity protection is under the sole auspices of IT; in reality, it is a process that ought to be implemented in <\/span>every step of your supply chain management<\/span><\/a>: from sourcing to transportation, and even quality control.<\/o:p><\/span><\/p>\n<\/div>\n

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\u00a0<\/o:p><\/p>\n<\/div>\n

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Even more than two years into the global pandemic, supply chains are still in flux. By proactively planning for this continued uncertainty, you\u2019ll be better positioned to navigate challenges as they arise. <\/o:p><\/p>\n<\/div>\n

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\u00a0<\/o:p><\/p>\n<\/div>\n

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Read more<\/span><\/b><\/o:p><\/p>\n<\/div>\n

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Boom, bust, and the global expansion of semiconductor fabricators<\/span><\/a>
2 strategies for navigating the discrete semiconductors market<\/span><\/a>
Global expansion of the semiconductor industry continues, China leading growth<\/span><\/a><\/p>\n<\/div>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n\n\n\n\n\n\n","protected":false},"excerpt":{"rendered":"

As electronic component manufacturers continue to make their way out of a shortage market, ongoing COVID-19 lockdowns threaten that stability \u2014 even in the face of decreased consumer demand. What is next for taxed supply chains worldwide? From the COVID-19 pandemic to geopolitical tensions to increased demand for goods, supply chain shortages have become the […]<\/p>\n","protected":false},"author":270,"featured_media":20465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[18],"tags":[104,322,54,197],"class_list":["post-20457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-shortage-mitigation","tag-electronic-components","tag-shortage-market","tag-supply-chain-management","tag-supply-chain-solutions"],"yoast_head":"\nCovid-19 Lockdowns Continue to Impact Electronic Components Supply Chains<\/title>\n<meta name=\"description\" content=\"As electronic component manufacturers continue to make their way out of a shortage market, ongoing COVID-19 lockdowns threaten market stability. 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