A return to normality?

1 min read

Last month, Hyundai Motor, ABB and Electrolux all suggested that the semiconductor chip shortage was showing signs of easing.

Hyundai said that it had been able to resume overtime and weekend shifts as a result of an easing in the global chip shortage, while Swiss-based ABB reported that chip bottlenecks were less of a problem. ABB’s comments were significant as it is seen as a barometer of the global economy as it supplies control systems and motors to the transport industry and factories.

Both companies said that with chip shortages easing they expected to boost production over the rest of 2022. Both highlighted that commitments from suppliers were significantly better than earlier in the year when shortages had been severe.

Chip manufacturers seem to be increasing chip production and with demand from the consumer sector slowing, it appears that more chips are now being allocated to industrial customers.

Constraints certainly remain but there is a growing sense that the worst of the supply chain crisis could be behind industry.

But while an increase in the supply of chips will reduce one burden there still remain others, such as surging raw material price inflation, an extremely tight energy market and rising interest rates.

Yet, despite all that, there does seem to be a feeling that a degree of normality is, at last, returning to the supply chain.