Nate Rosier | Source | SVP, Consulting Group Leader at enVista

"The current chip shortage arose largely due to factors such as labor, pandemic disruptions, transportation assets and more. Part of the reason why the chip shortage is so damaging is due to its wide range of impact, having affected industries including food, construction, durable goods, automotive, and other chip-dependent products. If we do not see relief in the shortage soon, we could see significant negative impacts to the supply chain cycle, particularly in the automotive industry, impacting customer satisfaction and profitability. Of course, any supply imbalance typically yields price increases, additional costs and ongoing administrative work in order to align supply to demand. At a minimum, we are all learning how fragile supply chains are and the extraordinary efforts required to make supply match demand when disruptions occur."