How Businesses Can Respond to the Semiconductor Chip Shortages
Blog-April 8, 2022
Global semiconductor chip shortages have already had a disastrous impact for buyers, with prices rising by as much as 20%¹. But the problem is far from resolved.
Russia’s invasion of Ukraine has now further exacerbated shortages, which has led many manufacturers to close their order books – creating extremely long lead times for new vehicles.
How Russia’s war is worsening shortages
Russia’s attack on Ukraine has led to severe financial sanctions and new supply chain challenges. For semiconductor makers, it has disrupted the production and shipping of two vital manufacturing components.
The first is Neon gas. Historically, it has been used to feed the lasers that print minute circuitry onto silicon. But around half the world’s semiconductor grade neon gas is produced by two Ukrainian companies and with the current situation, they have both halted operations – creating a sudden global shortage of the gas².
The second is metal palladium – a vital component in the later manufacturing stages of semiconductor chips. Roughly one third of the world’s palladium comes from Russia³, dealing another blow to the supply chain necessary for chips to be produced.
What effect will this have?
The consequences of the situation are already being felt. Within a week of Russia’s invasion, palladium prices hit an all-time high due to disrupted shipments⁴. But this will only be the beginning.
With supply chains disrupted and prices soaring, new vehicles are already in short supply and lead times are getting longer. As a result, we are seeing extortionate price hikes on used, unreliable vehicles which can be detrimental to businesses.
Contractors are likely feeling pressure to overspend in order to maintain an effective fleet. However, there is another way around the problem.
How Access Hire can help
Access Hire currently offers the UK’s largest fleet of Vehicle Mounted Access Platforms and other specialist vehicles. This means we are able to provide fully maintained Van Mounted and 4×4 Mobile Elevating Work Platforms (MEWPs) across the entire country – despite the ongoing semiconductor shortages.
Not only that: we are able to offer shorter lead times than other industry players, along with 24/7 support to ensure your vehicles function flawlessly. And if you are planning in advance, we offer long-term leasing – so you can lock in vehicles for future projects.