Global Computer Chip Shortage Hits Chicago Businesses Hard
You may have assumed the chip shortage was going to resolve itself by now — if so, you’re out of luck. Estimates predict that the shortage will continue to affect automotive and technology companies for at least another year.
When the shortage began last year it may not have been a critical issue for you. If your business’ computers were relatively new and well-maintained, you likely didn’t have to worry about replacing them in the near future.
Unfortunately, it looks like the chip shortage will not only continue but likely get worse as well. Manufacturers that rely on these components (Ford, Toyota, Apple, HP, etc.) are anticipating extensive delays in the fulfillment of new hardware and products. They expect the effects of the shortage to last at least into 2022, if not further.
If you haven’t arranged an order for your replacement business hardware yet, now is the time to get in line. The process will be more onerous and expensive than ever before, but the sooner you get started, the better.
Computer Chip Shortage…What’s Causing All This Turmoil
The shortage stems from both growing demand and tensions between nations. The combined effect is a drastic drop in supply, amid rising worldwide demand.
At the start of 2021, semiconductor sales had already ballooned by 13.2%, due in large part to the number of people working from home for the first time. Supporting remote work environments required businesses to invest in up to two times as many computers and devices as they would normally need.
As remote work-based demand increased, stressed relations between the US, Russia, and China prompted nations to begin stockpiling valuable materials, including semiconductors. Factor in the decreased workforce during the pandemic and extended timelines for production and shipping, and you get a critical disparity between supply and demand.
Chicago Businesses Will Pay The Piper For Anything With A Computer Chip
As chip manufacturers struggle to produce a sufficient supply of these key components, prices will inevitably rise. TSMC plans to hike its prices in line with the limited amount of components they are able to produce.
The automotive industry is already expecting a $210 billion loss in revenue over the course of the year because of this issue. While some more optimistic industry leaders like Elon Musk are looking to new manufacturing processes as a way to address the shortage, others will simply pass the costs on to the end-user.
This has resulted in a bidding war among major manufacturers. As globally active brands like Toyota and Apple compete for vital components, they’ll have to pay much higher prices. Those expenses will fall in the lap of consumers like you.
While prices may be high now, they’re only bound to increase over the next year. As the shortage continues and demand climbs, prices will increase in kind. That’s why you need to start placing orders now for the hardware you’ll need next year and the year after that. The longer you wait, the more it will cost you.
Outdated Computer Hardware Are Gateways For Cyber Bad Dudes To Hit Your Chicagoland Business
If you think you’ll be able to get by with aging hardware, think again. Continuing to use unsupported and faulty technology can expose your organization to a series of issues:
If your old tech is working so poorly that it stops you and your crew from working, then it’s time to replace it. The downtime caused by old hardware isn’t worth the money you’re saving by hanging on to it.
Whether you agree or not, it’s a fact – Ponemon Institute estimates that every minute of even partial downtime can cost as much as $5,600 per instance.
The main cost of downtime is not the fix itself, it’s the halt in your business’ productivity. If an IT-related or natural disaster occurs and takes critical systems offline, employees will be unable to complete their tasks, yet your normal business expenses will carry on.
The economy of downtime is unforgiving – it grinds your firm to a halt, racks up expenses, and keeps you from getting anything done. Additional costs include:
- Expense Vs. Revenue: During downtime, you incur all the expenses of running a firm without the revenue you would usually generate.
- Loss of Focus: Even if downtime does not grind everything to a halt, some of your staff will have to divert themselves from their normal work to mitigate the problem – again reducing productivity.
- Affected Service Delivery: Furthermore, while your systems are down, you can’t deliver services or sell products to current and potential new clients.
- Cost Of Repair: However you approach fixing the problem, it’ll cost time and money.
Furthermore, old hardware poses considerable security risks to users as well. The older your hardware gets, the more limited it becomes in its ability to support new software. The older the software you use is, the more vulnerable you are to cybercriminals.
Did you know that the most common way cybercriminals get into a network is through loopholes in popular software, applications, and programs? Despite how advanced modern software is, it is still designed by humans, and the fact is that humans make mistakes.
Due to this, much of the software you rely on to get work done every day could have flaws — or “exploits” — that leave you vulnerable to security breaches.
Many of the most common malware and viruses used by cybercriminals today are based on exploiting those programming flaws; to address this, developers regularly release software patches and updates to fix those flaws and protect the users.
However, developers eventually stop issuing patches for older software. This is why it’s imperative that you keep your applications and systems up to date, which becomes more and more difficult the older your hardware gets.
Frugality is a valuable priority in the business world. Avoiding overspending and being resourceful with the assets you have can help to boost your profits and keep your construction firm operating within its budget for a given project.
However, there’s a difference between being frugal and being cheap – do you know which you are? There’s an easy way to tell. Ask yourself, “when was the last time I updated my technology?”
The fact is that many of us will continue to use obviously outdated technology long after it should have been replaced. Whether it’s that old smartphone that won’t run newer operating systems or the computers you use at work, sticking with out-of-date technology will save you a bit of money because you don’t have to replace it.
However, the longer you wait to engage in the refresh process, the more consequences your business will face, and the more it will cost you in the long run. That’s why you need to get started now.
ExcalTech Has The Solution: We have Laptops & More
Is your hardware in need of an upgrade?
If your devices are approaching end of life then you need to start planning to replace them now. ExcalTech will help — we can assess and determine the state of your current hardware, and help you plan ahead for when it will be replaced, mitigating as much of the delay as possible.
As of this blog’s publishing, we have a limited stock of a range of new hardware complete with these in-demand chips. We can help you deploy these systems, but supplies won’t last forever.
Get in touch with our team to get started and help ensure your staff members have what they need to do their work.
