The pandemic has not only changed our lives but has also impacted our economy in a very severe way. It has resulted in one of the worst shortages of supply materials in a period when the demand keeps increasing every new month.
The shortage of everything from raw materials to chips and other essential components is currently having a field day at ripping off business from the electronics and auto industries. However, according to recent reports, this is only the beginning.
Recent sources indicate that the suppliers in North America, Asia, and Europe are facing an even bigger problem which is the current rise in the difficulty and cost of finding skilled workers to keep the industry machine going at a time when demand is higher than it’s been in years.
Coming to the major issue haunting the tech industries these days is the ongoing chip shortage which has put a lot of strain on the supply chains of many tech companies. Yet, they are too facing an unprecedented problem which is also the result brought by the change in learning patterns due to the pandemic.
Most of the tech companies and manufacturers have gone on a hiring spree to meet high consumer demand in the holiday quarter. However, almost 80 percent of the company’s say that it’s become harder to find qualified workers for their factories.
According to an analysis report from IPC, the cost of finding skilled workers has grown considerably over the past year. However, the bad news is that this problem is expected to continue well into 2022. The timing is unfortunate, as demand for everything with a chip inside is more robust than it’s been in years.
Currently, almost two-thirds of American companies are having trouble acquiring a skilled workforce, and European suppliers are also in a similar situation. However, in Asia, there exists only a third ratio of suppliers who are having this problem, and this is primarily thanks to lower labour costs and more relaxed worker safety regulations.
However, the most hit during the pandemic are the Automakers as the auto industry is likely to lose over a whopping $210 billion in revenue this year, almost twice as much as previous estimates released in May.
