Shortage Outlook For 2022

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Tariff Update

Will shortages improve next year?  Most industry leaders say that parts shortages, including semiconductor chips, will continue until at least mid year 2022 and beyond, leading to further shortages in car audio.

“Unfortunately, it won’t be any time soon,” said Pioneer Electronics VP Marketing, Car Electronics Ted Cardenas of parts shortages. “Most consumer electronics companies are looking at mid next year at the earliest and it could be even farther out. Much as we saw when 2020 started…as demand grows and supplies continue to be constrained, it keeps snowballing.”

VOXX Electronics Senior Vice President Aron Demers expects chip shortages through the end of 2022., “Leave the US out of it for a second. If Omicron hits in Asia, where a lot of our 12 volt product comes from, and we see factory shut downs, who knows what will happen.”

He added, “In the US you have inflation …Do we slip into a recession? Will interest rates go up?  There are a lot of unknowns in our economy… It’s not going to be good over in Asia. If some of these factories have to shut down from an outbreak, if the province or country puts them in lock down, it’s not going to be good.”

Computer chip makers also predict shortages through the year 2022 and possibly into 2023. Intel, NVIDIA (gaming and automotive chip maker) and Forrester Analytics, a leading analyst firm in consumer electronics all expect shortages for the full year 2022, according to Engadget.

But some 12 volters expect demand to slow next year, as consumers clamp down on spending, now that stimulus payments are gone.  And lower demand will put less pressure on the supply chain in car audio.

“I’m concerned that retailers and distributors and manufacturers have unrealistic expectations and they’ve planned their business based on the last two years [when consumers were flush with extra cash],” said Josh Eatherly of P&E Distributors.



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