Global Supply Chain Challenges

·        Many industries and top international exporting countries are experiencing harsh political turmoil, inclement weather conditions and shortages of all kinds, such as power, raw materials, workers, etc. Below are several big issues that are impacting the global supply chain:

o   Continuing lockdowns and effects of Covid19 quarantines are continuing to cause disruptions across the entire globe, creating huge manufacturing backlogs in all industries.

o   The release of 5G is largely attributed to the worsening electronic chip shortage as the manufacturers shift their focus from other areas to prioritize component production for the new technology.

o   China is going through one of its worst grid power disruptions due to a coal shortage, effectively crippling the manufacturing powerhouse of the world. Factories have been forced to operate on a reduced schedule.

o   Taiwan experienced one of its worst droughts in decades during the summer of 2021. This reduced the number of chips that could be produced by the world’s largest chip makers.

·        The United States is experiencing a large shortage of shipping containers, workers, trucks, and truck drivers which has resulted in an all-time high of over 100+ cargo ships sitting off the ports of Los Angeles and Long Beach as of 10/21/2021.

Here at Tycon Systems, we have already taken many necessary steps to avoid inventory shortages and have made changes to our inventory forecasting to help prevent future stock issues. Even with our early adjustments, we find ourselves struggling to keep all of our products in stock at all times.

We have started seeing the light at the end of the tunnel as supply of many components we use are already beginning to stabilize. We think that this trend will continue and by mid-2022 we are hopeful that we’ll be dealing with a more normal supply chain.

We deeply apologize for any inconvenience our customers have experienced during these increasingly uncertain times. Thank you for your continued support and helping make us what we are today.

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