Low Inventory, Long Lead Times
Why You Should Order Parts Now
The COVID-19 pandemic certainly threw everyone for a loop, but electronics manufacturers especially suffered thanks to supply chain disruptions and component shortages.
The pandemic shut down a lot of avenues for raw materials and bulk electronic components, leaving manufacturers with half-finished products and idle capacity. Many components come from supply chains in Asia, and since China was ground zero for the coronavirus, the shortages started to affect U.S. manufacturers before the virus hit American soil. Shortages aren’t the only problem — so are rising prices. As demand for electronic components rise, the supply dwindles, and costs increase. Shortages are now reaching across all manufacturers, industries, and products.
Is There A Solution?
So, what is the best solution to this issue? Most experts agree the best approach is to be prepared with as much planning, as far into the future, as possible. Many military projects have a large reserve of available funds, so investing that money in long-term R&D, allowing you to order your components very far in advance, is a wise decision. Monitoring current trends in the electronics industry and making educated predictions about where they are headed can assist you with this approach.
A planning stage that maps out your project well in advance can eliminate or greatly minimize the problem of long lead times, hopefully until the current crisis is over.
Another alternative is to seek additional vendors. Vetting a vendor can be a time-consuming process, but if it can significantly increase your pool of potential sources, it will usually be well worth the effort. Those new vendors, who are eager to secure your business, may even be able to offer reduced prices or other solutions to your electronic component problems that can help you right now.
The Car Wash Industry
The car wash industry is not immune from these shortages, so get on the phone and order what you need sooner rather than later, because odds are the inventory is low and the lead time is going to be long.
And although it is August, it’s not too early to consider the tax implications of all the software and equipment you are purchasing. You will be able to write off the total cost of many items you purchase – on this year’s taxes – if they are delivered and installed this year.
Another good reason to plan ahead.
As much as we all want to deny it, summer is going to end sooner than we want and the fall/winter season will be on our heels. Waiting to start the purchase process can disrupt your business during the most critical times. Not exactly ideal especially when there are shortages in getting parts replaced.
Whether you’ve been thinking about it for a while, or are ready to purchase, as we are on the cusp of new variants and mandates changing daily, getting your wash to the best possible position you can is essential.