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A global shortage of semiconductor chips is having local impacts. (Photo Courtesy Derek Brade)
snowball effect

Global semiconductor chip shortage affecting local businesses

Jun 17, 2021 | 10:35 AM

MEDICINE HAT, AB – While the end of the pandemic finally seems within sight, major global impacts are starting to surface and are starting to reach the local level.

The world is currently experiencing a shortage of semiconductor chips.

Although tiny, the chips serve a big purpose. One of those being in the electronic parts of cars.

“Right now we’ve got about 49 new vehicles, normally we carry around 150,” Grant Purslow, a sales manager at Murray Chevrolet, said.

Without the chips, manufacturers are being backlogged with vehicles that can’t be shipped out.

“The supply from the factory and the rate at which they’re able to produce has gone way down,” Purslow said.

But it’s not just the auto industry that’s taking a hit.

These chips are also used in printers.

“Well we’re having a difficult time with black and white printers, getting those in,” Mavis Conrad at Corporate Business Equipment said. “The chip shortage has caused a delay in getting printers in.”

She says the delays can be months but customers have been understanding.

Conrad thought the struggles of the pandemic were finally starting to get better but she’s frustrated as business problems are actually getting worse.

“It’s delaying not only printer shipping times, furniture shipping times, so everything is kind of delayed and it has a snowball effect,” Conrad said.

But back at the car dealership, there are benefits to the lack of supply. The value of used cars has increased and there’s a high turnover rate

“The part that’s making it the most interesting is that supply is so low that when we do have a vehicle people are making a decision a lot faster because they have to,” Purslow said.

Purslow says vehicles are being sold before they hit the lot.

As for the global chip shortage, because they are in so many products, there’s no definitive answer to when it will be over.