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Citi: supply chain shortages are here to stay

Jun 10, 2022

Shortages of semiconductors, autos and other industrial goods that move through supply chains are here to stay for the time being, Citi warned earlier this week.

“Bottom line, we find that supply chain pressures have proved to be more persistent, and apparently deep rooted, than we had expected even a few months ago,” strategists led by Nathan Sheets, global chief economist st Citi Research, wrote in a new report.

“And the Russia-Ukraine conflict seems to be further amplifying the stresses. Given these realities, any hopes of near-term improvement in supply chain conditions have been shattered. The challenges in the months ahead look to be as acute as at any time over the past two years.”

According to Citi, the pressures of inflation, labour shortages and increased household savings are some of the challenges supply chains are facing.

“To relieve the stress in global trade, we ultimately need to see an improvement in the pandemic,” Citi said. “Some specific supply chain issues are beginning to unwind but there are still a number of lingering unknowns.”

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics