Semiconductor Shortages and Shipping Problems Contribute to Global Shortage of DJ Equipment
DJ equipment has been scarce lately, with stores running out of stock or facing rising prices. A recent report suggested that a shortage of parts, coupled with high demand, would be the main reasons for the shortages this year.
According to report of DJ tech tips, a community and an online store, several factors influence this shortage, boiling down to a problem of high demand and low supply.
Component cost, a shortage of semiconductor chips, rising labor costs, and little tariff relief are among the key factors at play, and these factors are currently affecting many industries.
Component materials such as raw copper have nearly doubled in the past year, according to the market research company Macrotrends, while labor costs have increased due to pandemic-related factors such as deadlocks. In addition, moving the final product was also a challenge due to global shipping congestion caused by overbooking.
In his report, DJTT described a situation in which they themselves suffered a month-long delay on a major shipment of Chroma Caps to their headquarters due to overbooking of ocean-going vessels. The situation is no better with the option of air freight, the price of which has also increased.
Tariffs, which are an integral part of much of the manufacturing process, as many manufacturers choose to have their products manufactured overseas, are seen as an issue due to the inability to move manufacturing.
DJTT underlined the specific strengths of Shenzhen, the technology-manufacturing capital of China, noting that such a place does not exist in the United States.
However, since the tariffs have not changed despite the change in the Biden administration, goods sent to the United States have been estimated to cost at least 20% more because of those tariffs.
And perhaps the most important of these factors is the semiconductor shortage, which has plagued many industries. Reuters reported in July that smartphone makers could be hit by a shortage that is expected to last until 2022.
Andrew Feldman of the start-up Cerebras Systems said Reuters that vendors cited 32 week delivery times for new chips, which illustrates how important this issue is given the constant demand for semiconductors in everyday electronics.
The DJTT report closed by warning those looking to purchase DJ equipment to start planning 6 months in advance, given questionable availability of some products. Unfortunately for those who are waiting for the Black Friday sales, they also note that the low offer will almost guarantee that most products will not be discounted at all.