Component Shortages Tax Hardware Makers

When the bottom fell out of the economy in October 2008, the reaction of manufacturers of electronic components was swift and decisive. Unsettled by the prospect of being caught with excess inventory, many firms simply ceased production.

The result has been a sustained shortage of components that continues to wear on the price and supply of electronic devices, even though suppliers have been ramping up production for the better part of a year. Hardware Central takes a look.

The computer and electronics industries are still dealing with lingering effects of the 2008-2009 recession, with parts now in very short supply and deliveries taking much longer than usual. The impact is being felt on both prices and availability.

When the economy hit the skids in October 2008, production came to a dead stop all along the supply chain as vendors panicked at the thought of being stuck with unsold supply. For a few months, things crawled along with very little product being made. Fabrication facilities were idled, expansion plans shelved, staff let go. Then, in the middle of 2009, sales began to accelerate, much faster than anyone anticipated.

Read the full story at Hardware Central:

Hardware Suppliers Hit by Severe Component Shortages

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