David Papp Blog

2023 Supply Chain Issues Impacting the IT Sector

Businesses have been impacted by global supply chain shortages for the past two years. This issue has caused the price of computer components to skyrocket, making it challenging to secure hardware products on time.

Supply Chains during the Pandemic

The COVID-19 pandemic has affected everyone, and businesses are not immune. People all over the world have dealt with this issue in different ways, complicating a collaborative construct like the supply chain. Prices in the $500 billion+ computing chip industry have risen significantly as supply chain issues have slowed chip manufacturers. As a result, orders for new technology have been significantly delayed. When combined with global shipping issues, it has become a significant challenge for nearly every business seeking new technology.

The irony is that despite the COVID-19 pandemic, sales of personal computing devices increased by 11% globally, putting additional pressure on component manufacturers. This is most likely due to an increase in remote workers during the pandemic, more hybrid workers in today’s businesses, and the current demand for new PCs, smartphones, and IoT devices.

Explanation of the Chip Shortage

Semiconductors are an essential component of all computing, and increased demand for computer chips has resulted in a significant shortage, contributing to global supply chain problems. This global shortage is causing many purchases of computing devices and components to be delayed, and industry trends indicate that this will continue well into 2023. The current political unrest in Europe will have a significant impact on semiconductor production, putting additional pressure on the supply chain.