Finding a solution to the shortage of microchips

consumption. The lack of chips also affects household appliances and therefore kitchen designers. Ovens, dishwashers, and microwaves are subject to waiting times unless solutions such as wholesalers or warehousing are found.

Cars, game consoles, boilers, wood pellet stoves, household appliances and lack of electronic chips lead to cascading shortages. Kitchen designers are directly affected in terms of home appliances with longer customer waiting times…unless a solution is found.

For Emanuele Franzoni, director of Atlas, this problem is not recent. It places it more precisely at the beginning of the health crisis. The supply of Chinese chips has been limited from that time onwards due in particular to factory closures. Other causes of the phenomenon have been added (see box).

Three different solutions for chips

Above all, Emmanuel Franzoni explains that all major home appliance brands are based on the same manufacturer of electronic components, that dependency has arisen and the entire market is being penalized.

For him, orders are already 18 months late especially in dishwashers and ovens. “There are still some difficulties with the trend towards improvement. Previously, he says, it was necessary to wait three to four months for an oven with, at times, a complete lack of visibility among manufacturers.

walking in the net

Today, this phenomenon is far from resolved, but the director of Shomon considers the situation “manageable because it is part of a large group.” In other words, it has a certain field of view and a certain adaptability thanks to its striking power. “When a supplier claims that ovens or other home appliances are out of stock, we look for a third party. We go to the wholesalers, and we go as quickly as possible to bring the appliance home,” he says. It talks about a core network to look for, and a claim “so as to avoid all dependencies”.

For the franchise kitchen, Maurizio Faila adopts another solution. He points to delays of “up to six months for dishwashers and microwaves” and to get around that, he chose to stock key products. Its working capital in equipment is now much larger to satisfy its customers who are still understanding. The man goes so far as to advise these same customers to buy their own home appliances, knowing that it is a service in addition to the store.

price increase

The third solution to this deficiency is to offer customers brand changes. Most often, by good grace, they agree. The problem lies more on the side of increasing tariffs with higher prices for raw materials (steel, wood, plastic, etc.) and transportation.

Emmanuel Franzoni fears that suppliers will take advantage of this price increase not to cut prices again. However, it remains positive in appreciating the booming kitchen market. An observer sees residential areas being built and knows that the kitchen has become a priority. Suddenly, for him, it would be a shame to slow down this economic turmoil that he hopes will be resolved in the coming months. He wants to be positive.

Frederic Tevenen

f.thevenin@jhm.fr

Move to master

Thus, the shortage of electronic components is due to China’s production lines, which are slowing down and which, in the context of an economic recovery with strong demand, are struggling to catch up with the accumulated delays. In addition to this, increases in the prices of raw materials such as cobalt and transport with the increase in oil prices and thus containers at sea. Prices tripled.

These transportation problems are expected to persist over time with container shortages in 2022 and port blockages. The situation is that many manufacturers have decided to move part of their production to their markets – especially in Turkey – to be less dependent on sea transportation.

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