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Identifying where the shortages are, and what’s next?
Availability down, margins up? Or as a German manager put it: “Change your talk track. Don’t talk about how much, talk about when.”
I’d say this is a rather simplified view of a highly complicated economic development. Let’s look at what we’re short of currently (and that’s only the top five for the office imaging industry):
Internet Bandwidth
In many areas of Europe, bandwidth is still an issue limiting productivity. Internet access and bandwidth seemed OK, as long as we were able to rely on everybody working from an office, or at least in an environment that would take care of more than one person going online at a time. The math is simple, one company = one access point + repeater(s). However, WFH (working from home) = one access point per employee. Internet providers are working hard on solving these issues, but they still have a long way to go.
Hardware Shortages
If polls and outlooks can be trusted, the European warehouses are empty. On average, available supplies last from half a week for printers to up to four weeks for desktops. Laptop, monitors, and other hardware are somewhere in between. There are a number of reasons for the shortages, starting with an energy crisis in China, shipping/unloading bottlenecks, supply chain shortages to build any of the above, and a steady demand for home office-suitable equipment. In addition, it depends on the logistics in the country you’re in.
The People Crisis
The people shortage is a bit more complex. For many, working from home, or not being able to work at all, triggered plenty of questions about their careers. We not only saw companies furlough and let go of large numbers of their staff, but also colleagues of all levels of qualifications handing in their notices. So, did unemployment rates go through the roof? Temporarily, yes. Compared to previous years, slightly.
Overall, the numbers aren’t too bad. However, we see more employees making more conscious decisions about where/what they want to work, and how much they want/need to earn to find a healthy balance between job and family.
Chips/Semiconductors
The supply chain troublemaker number one is disrupting everything and anything that runs on an electronic “brain.” Is there an end in sight? Not in the very near future (and that includes 2022) and not until we start drastically revamping the supply chain. Just one word here for you to think about—near-shoring.
Paper and Toner
There’s a lot of disappointing news here with more than one reason for the shortages. For example, let’s look at Konica Minolta. At least in Europe, we’re struggling with a major toner shortage in the aftermath of an explosion at the company’s toner factory in Japan in early October. Centralized manufacturing, and then logistics challenges such as shipping, unloading, and distribution across Europe are also creating problems. Generally, it’s no fun pricing toner and ink at the moment. I recently read a drop of high-end ink is as expensive as a glass of champagne. Santé, mes amis!
And what about paper? There is a shortage of paper, and there are—temporarily, they say—surcharges on many papers caused by a hike in water, gas, and electricity charges. Time to rethink hardcopy document output.
Discouraging or Encouraging?
If you are familiar with the Kondratieff Wave, you won’t find it hard to see the light at the end of the tunnel. The economy moves in waves. And as much as we feel we’re at the bottom, we’re already on the way up again (or for unemployment, on the way down). And by embracing a few changes in manufacturing, logistics, and how we manage our teams, we’ll shortly be unstoppable.
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