Unprecedented demand accompanied by uncontrollable circumstances has thrown the electronics industry into a tailspin.
At Tasco Security, we do our best to keep an open line of communication with our customers and potential clients. This involves being out in front of potential issues that we foresee coming down the pipeline. We want to make sure our customers understand this potential situation so we can work together through these supply chain delays.
The security industry has evolved greatly over the past few years, camera capability and smart home technologies are now more integrated with networks and applications than ever before. The ability to monitor live camera surveillance video right from your mobile device is a massive technological advancement. However, these new technologies rely on components made from specific manufacturers overseas and are ripe for supply chain disruptions.
In Spring 2021 supply chain chaos moved from the manufacturing side to the distribution channel and companies in the security industry. The COVID-19 pandemic forced many security industry parts manufacturers to cut back on their factory output, now with demand surging they simply do not have the inventory or the ability to quickly ramp up. This timing coincides with a worldwide microchip shortage initially caused by the factory fire in Japan along with other reasons such as a shortage of shipping containers. When you factor in the auto industry demand for semiconductors is seven times higher than the demand needed for consumer electronics, delays and potential pricing increases are inevitable.
“Semiconductor chips play an essential role in the security industry’s ecosystem by enabling security equipment to function, interoperate with other communication systems and augment traditional solutions to include artificial intelligence, 5G and Internet of Things functionalities,” SIA’s statement reads. “In light of the global chip shortage – including manufacturing and shipping delays, supply chain disruptions and increased demand for semiconductor chips that impact product manufacturers – SIA supports incentivizing eligibility for CHIPS Act funding programs.” (securityinfowatch.com)
Tasco Security will continue to monitor the situation and work with all our clients to make the best decisions possible to navigate any potential product delays. If you are planning any potential changes to an existing security system or installing a new system give us a call today and we can discuss the best options for your project.
