Component Shortages Hurt Hardware Suppliers

Computer and device manufacturers rely on a complex network of suppliers to deliver latest hardware goodies. It’s a delicate management process that assumes each supplier can deliver X product at a certain date in the desired quantities.

In recent years the computer and electronics industries have had their share of hiccups and more serious supply delays and the ripple effects are still being felt. For example, when LCD panel makers can’t get the quantity of integrated circuits and capacitors they need that affects the supply of standalone LCD displays and what’s available to notebook manufacturers. Hardware Central reports on the state of component shortages and where things are headed.

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 article at HardwareCentral:

Hardware Suppliers Hit by Severe Component Shortages

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