What Logistics Means Today For The Tech Industry

Illustration of what logisitics means today

How the pandemic has affected our logistics or supply chains in the tech industry. 

The pandemic has affected many industries for many different reasons, but one that seems to be getting hit the most long-term is the tech industry. Material shortage world-wide has led to a cost increase and is therefore hitting consumers hard. However, it is not just the pandemic that has caused this slow in production, distribution, and sales. 

The trade war between US and China contributed to the industrial slow down and production as well as logistics stall. Due to covid there are less freight workmen and workwomen. This means reduced air freight capacity. Squeezed logistics means slowed down ports in Europe and the US, which equates to even more delays and higher shipping prices. Therefore, there have been multiple factors that have led us to the situation we are facing now.


Close up of semiconductor chip

What does this mean for the development of new technology?

First, these production and freight personnel scarcities as well as higher costs means an intense strain on how quickly these newly developed products can come to-market. Materials are needed to create prototypes, let alone the difficulty of mass-production of tech devices. Manufacturers also have to make special tools to mass-produce each product. Pre-COVID creating these tools could take a few months, but now that production demand is backed up, developing new tools for future products is the least priority.  

One example is semiconductors. Semiconductors are considered to be at the heart of technological evaluation, as they perform important functions, are in top demand at the moment. It is the sheer height of this demand that is showing the lack in semiconductors which is having a lasting effect on the whole supply chain when it comes to the electronic industry.


Woman in the kitchen pointing to her laptop  


What Can You Do To Help?

It is no secret that the manufacturing industry has been and is going to continue being hit hard by these shortages and higher price points. Smaller manufacturing businesses risk going out of business due to not having the resources or funding to match these higher price points. While large corporations can buy materials and devices in-bulk for lower costs, store mass-quantities of inventory, and raise prices to the customer to force-slowing demand, small businesses are much more limited in their acclimation to the strained system. The bigger corporate companies will be able to match these demands and therefore won’t be hit as hard as the smaller businesses. 

Woman working on a computer hardrive

It is going to be a tough few years for the tech industry, we are not going to see the rapid physical product developments we have been used to reviewing in previous years. What we are going to see are consumers being more conscious about where and what they purchase. They are adapting to not impulse-buying gadgets galore, but thoughtfully selecting what works for them. Well-curated collections that fit their needs exactly, understand their unique perspective, and are human-oriented before profit-oriented, is what tech consumers are gravitating towards today. 

Here at Lee London, we support smaller, often minority-owned tech manufacturers. We believe in investing in quality solutions from ethically-sourced manufacturers. Cross-culturally, COVID has taught the world that less often means more, and quality is better than quantity. So, before you turn to Amazon or another massive transactional company, show your support by having a look at some of the smaller tech companies out there. 

The material shortage and price increases aren’t going to go away any time soon. Due to professional shortages, political disruptions, and freight disparities, these logistics developments will last for a few years. The best way to help is to be patient, find the necessities you need, and invest into small businesses. We’ll get through this together.

Woman volunteer taping up boxes


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