The Institute for Supply Management announced yesterday that their index indicates continued manufacturing expansion, which leaves semiconductors scrambling to assess, fix and recover from the pent-up pandemic demand.
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Supplyframe CMO, Richard Barnett, is a veteran semiconductor supply chain expert. He speaks about the global semiconductor shortage and what the industry needs to focus on in order to lower their risk of component shortages and build resilience into their products.
Overcoming The Semiconductor Shortage
“Leading semiconductor producers are doing everything in their power to overcome the chip shortage, but the hard reality is that we can’t expect any quick fixes,” said Richard Barnett, chief marketing officer at Supplyframe, the leading intelligence platform for the global electronics value chain. “The Institute for Supply Management announced that its index of manufacturing activity rose from 60.7 in April to 61.2 in May, making it the 12th consecutive month of growth. Any reading over 50 indicates that manufacturing is expanding, yet semiconductors are still struggling to catch up with demand. Every industry from cars to lumber and tech has been affected by the chip shortage, which highlights how vital semiconductors and other electronic components have become to the world around us. It also illustrates the need for businesses to employ solutions that provide forward-looking, multi-tiered insights on dynamics impacting material trends related to semiconductor and electronic component engineering and sourcing strategies to increase their opportunities and resilience.”
