The latest industry reports make interesting reading. In the first quarter of 2022 economic growth improved as the effects of the Omicron variant of the COVID19 virus receded.
Signs of recovery looked promising. Lead times however are still considerably longer than the pre-pandemic era. Asia showed signs of increased production, only to be setback by recent COVID outbreaks that slowed the supply chain down again. Component prices are still on the increase due to supply shortages, staff recruitment costs and increasing energy prices.
Component shortages are still a big problem, and it was recently reported in the national press that a tech company resorted to buying washing machines so that it could remove the chips from them to use in its own product manufacturing.
At Texcel we have invested over £2 million in additional inventory to help us smooth out the supply chain shortages and remain agile in these unpredictable times.