Supply-chain woes have mounted world-wide for makers of everything from cars to clothing. Here is what you need to know about the situation.
What are some of the supply-chain problems?
An imbalance in semiconductor supplies and demand, a freeze in Texas in February, a ship blocking the Suez Canal and other problems collectively have limited availability of key materials to manufacturers around the world. The disruptions have created cost increases and delays for numerous industries, potentially leading to higher prices for consumers.
What products have been affected by the supply-chain crisis?
Semiconductors have been in short supply for months after makers of cars, smartphones, PCs, tablets and TVs underestimated expectations during the pandemic, before ramping up orders that caught chip manufacturers unprepared. Meanwhile, a fire at an automotive-chip factory in Japan further snarled the chip supply chain.
The production of plastics has been disrupted by the February freeze in Texas. The state is home to the world’s largest petrochemical complex, which turns oil and gas and their byproducts into plastics. The cold weather triggered mass blackouts that closed plants for weeks, causing a shortage of the raw materials needed for things including medical face shields and smartphones.
How has the ship stuck in the Suez Canal affected supply chains?
The transportation of many different goods and products has been delayed by clogged California ports and the blocked Suez Canal, one of the world’s busiest shipping arteries.