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The global chip shortage is making its initial waves felt through the construction industries.

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The construction industry does not seem to be immune from the global chip shortages plaguing The United States. The chip shortage has been crippling manufacturing plants nationwide and haunting production and delivery efforts.

The construction industry is also becoming a victim of such issues. The country already is grappling with massive obsolete ports where shipping containers are delivered and processed with tremendous anchored backlogged ships, Delivery Issues,and skyrocketing material costs.

The shortage of chips is expected to go on well past this year as analysts suggest manufactures were caught with their pants down and no stockpiled inventories through out the Pandemic. China appears again to have one up’d the United States while preparing huge chip orders and amassing inventory stockpiles before us and creating a frustration felt across the country.

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Volvo Construction Equipment has reported production slow downs and halts on some of its construction vehicles and equipment. Stating its a direct result of the chip shortage. Light duty manufactures such as Ford and GM also facing issues as the country races do acquire land and construct additional chip plants.

TSMC, a major chip supplier in the tech industry, stated they are “over 100 percent utilization,” but investing in infrastructure “We have acquired land and equipment, and started the construction of new facilities. We are hiring thousands of employees and expanding our capacity at multiple sites,” Wei said reported by Reuters.

TSMC will invest $30 billion upgrading and expanding its production capacity this year (up from $25 and $28 billion). It reiterated that Construction at its $12 billion Arizona plant is still scheduled to begin this year. The company plans to invest $100 billion over the next three years.

Construction in itself is going through a technology adaption revolution and increasing its reliance on construction technology. From concrete curing sensor systems to paving machines and gps control systems. General Contractors and trades should put thought into lead times on new purchases or solicitations for specialty construction equipment with technology systems.



Via The Bylt Team



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