It's Time To Reboot: Top Consumer Electronics Industry Trends to Watch

Take a look around. How many electronics do you have within reach right now?

If you’re like the average American household, chances are you have at least 10 connected devices used for work, staying in touch with loved ones, shopping for holiday gifts, and watching your new favorite Netflix special. Our gizmos and gadgets have shifted how we live and work — especially during the COVID-19 pandemic — and technology’s influence will only grow as the electronics industry continues its expansion.    

Consumer electronics manufacturing is a dynamic, rapidly changing field and one of the fastest-growing industries around the globe. It’s estimated that in 2020, the industry grew to $2.4 trillion in revenue. With the emergence of new technologies, shifts in the supply chain, and the influence of big data, the industry will move in new directions and fundamentally reshape how we interact with the world.  

Looking to the new year and beyond, we’re keeping a close eye on consumer electronics manufacturing trends to understand how they will impact businesses and consumers alike. There are many factors at play when it comes to what the industry will look like in the future. Keep reading to learn what we’ve identified as key game-changers in the industry.

A Challenging Supply Chain

Despite the record highs of the S&P Retail Select Industry Index earlier this year, which includes retailers like Amazon and Best Buy and is at a current market cap of $3.3 trillion, manufacturers and retailers alike face a troubling holiday season ahead. On one end of the equation, retailers have been unable to keep their inventory stocked and are cutting sales forecasts. On the other end, products are having trouble getting where they need to go.  

Labor shortages are making it difficult for goods to get where they are needed. Even now, COVID outbreaks are affecting ports and there are not enough cargo containers to move products. The supply chain has yet to have the chance to return to pre-COVID conditions, as events from factory closures early to the Suez Canal blockage and labor shortages continue to have devastating effects on the supply chain.

This holiday season, some retailers are looking to increase spending on logistics, turning to costlier options like air freight to get their shelves stocked in time. However, an alternative solution can be found in supply chain technology.

Smart organizations are getting ahead of the new year by utilizing supply chain automation platform technology – like ketteQ – which allows companies to gain unprecedented visibility across all data inputs while enabling organizations to plan for demand, make real-time adjustments to forecasts, and model various scenarios to determine the right course of action to plan for and adjust to unplanned impacts to their global supply chain.

Let the Chips Fall

“There is a worldwide shortage of semiconductor chips–a shortage that impacts pretty much every aspect of modern life,” said Jonathan Capehart, opinion writer for the Washington Post. Some industries are predicted to lose $100 billion in sales because of the chip shortage, while the White House predicts it could cut a percentage point for the GDP. Semiconductor chips are used in everything from consumer electronics to medical devices and automobiles, which will make the shortage felt across industries.

Especially as the world progresses digitally, the demand for chips will continue to skyrocket. However, with manufacturers and suppliers unable to meet the demands, prices increase and products grow more scarce as getting chips in the hands of electronics manufacturers continues to be a challenge. The White House suggests companies adopt a three-pronged approach to improve their resiliency: monitor the supply chain in real-time, hold more inventory or have more suppliers, and be able to pivot quickly.

As we enter the holiday season, without an end to chip shortages in sight, retailers need to have visibility into their supply chain to meet consumer demand. For example, lack of visibility can equate to perceptions of poor customer service. Customers will feel more satisfied if you tell them when a product, like the newest Xbox or Playstation, will be back in stock as they race to pick it up before the holidays. Supply chain automation with software such as ketteQ will provide this visibility and insight.

St. Nick and the National Goods Shortage

Steve Pasierb, The President of the Toy Association, warned Fox News that some children’s toys could cost up to 10% more this holiday season. Even worse, some kids won’t receive the presents they want until port bottlenecks clear, which might not be until mid-2022.

California’s ports bring in around 40 percent of all shipping containers in the United States. With them backed up, interruptions from weather and a pandemic, truck driver shortages, and outdated infrastructure, supply chains are up against unprecedented congestion hitting at an incredibly busy time of year. It’s unclear when these supply challenges will clear, but it looks like things could take a while.

“We’ve got a long, long way to go. It took us more than a year to get into this,” Pasierb said.

Will Supply Chain Disruptions Ease Up?

As retailers struggle to get in-demand items back on the shelf, many are looking for relief ahead of the coming holidays. “We are not the Postal Service or UPS or FedEx. We cannot guarantee. What we do is use every lever at the federal government’s disposal to reduce delays,” said White House Press Secretary Jen Psaki during her press conference on Wednesday, October 13th.

Recently leaders in Washington announced a deal that would see Californian ports open 24/7, nearly doubling their operational hours and increasing cargo shipments by 3,500 containers. The hope is that this will alleviate the strain retailers are facing and meet the demands of the upcoming season, but will it be enough?

Preparing for the Future of Consumer Electronics Manufacturing

The only constant is change in an industry like consumer electronics manufacturing. And when it comes to getting products into people’s hands, consumer expectations have never been higher.

Preparing for a challenging supply chain will help your business stay competitive in a world where the bar keeps getting higher for reaching your target market and providing a unique customer experience.

Consumer electronics will play an even greater role in how we run our lives–especially at home, school, and in the workplace–and staying on top of emerging trends will ensure you stay adaptable and agile in this unpredictable, rapidly evolving field.  Meanwhile, ensuring efficient supply chain management ensures that you can fill your customer’s demands and expectations.

Ready to get ahead of the crazy supply chain situation?  Let’s jump on a call to learn more about your challenges and see if ketteQ can help!  

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