The global chip shortage has made us all aware of the importance of microchips and the impact a long-term shortage can have. Machine builders are currently experiencing major problems because machines are waiting for missing components. They cannot be delivered on time, which leads to financial problems and impacts customers in various industries, such as automotive, agriculture and packaging.
The chip crisis will continue into 2022
The pandemic has accelerated an already critical situation for chip manufacturers. According to a survey of the German research institute Ifo, 89% of the machine builders is affected by the chip shortage. Some of them are facing major financial problems or are even forced to temporarily close factories. The problem is that the shortage of chips, also known as semiconductors, is expected to last well into 2022…
How machine builders can deal with the chip shortage
In the machine building industry we see three ways in which machine builders are dealing with this chip crisis. Some companies established crisis teams early in the shortage to map out their approach and review their supply strategies, increasing their product inventory to create a buffer. Other companies are addressing the shortage by marketing their products redesign that fewer chips are needed.
Behind the scenes: Read how IXON's is dealing with the chip shortage.
Some machine builders are shifting their strategy from a delivery-by-machine business model to a service business model. While in the past the majority of income came from the supply of machines, it has become increasingly common for the majority of income to come from service models to generate. They have expanded the way they provide service by equipping their existing and running machines with new digital services such as monitoring of wear parts and consumables as a service.
Tip! Generate income from your existing and new fleet
We see that machine builders who implement service models suffer less from the component crisis, also in financial terms. Service models are a secure source of income and a solution to potential cash flow problems. You are no longer dependent on machine deliveries, because you generate recurring income from your existing fleet.
We understand that it is challenging to start implementing service models, especially during the chip crisis. However, you can start with small steps and still achieve a quick ROI through a fast time to market. If you would like to brainstorm with one of our experts, we are always available and happy to think with you about how you can initiate these service models to generate additional revenue.
Contact us or get some inspiration in our E-book: “Service opportunities for OEMs that boost revenue and meet customer demands” with a detailed explanation of service models based on use cases and business cases.
Nederlands