As a result of the COVID-19 pandemic, industries across the globe are suffering from the new reality of the world economy. The manufacturing industry has experienced the brunt of the crisis, working through labor shortages, border closings, and the ongoing supply chain crisis, amongst a litany of other difficulties. The recent microchip shortage, however, has emerged as the most challenging obstacle, as the supply chain crisis affects the manufacturing, exporting, and delivery of these vital pieces of technology.
Microchips are integral to consumer electronics, cars, and are vital for robotics manufacturing. Without these necessary pieces of technology, our assembly lines are in danger of slowdown and sluggish production, affecting the machines at the center of all manufacturing. Without the microchips needed to keep machines running, the auto industry alone will experience an estimated $210 billion in losses from the lack of new machinery. And that is only a small part of the larger picture, with thousands of other businesses at risk without access to microchips, and therefore, robots.
Automation has become a pinnacle of manufacturing in nearly every industry, increasing production and improving companies’ ROI. With predicted microchip shortages well into 2022, it will be much more difficult for you to purchase new machines, affecting production output, bandwidth, and may ultimately cause you to turn away business.
However, there are proactive solutions to ensure your production lines keep moving. Manufacturing companies across the country are looking for creative ways to continue hitting production goals, despite the microchip shortage. Here are some of the ways to keep businesses growing, no matter the obstacles.