IMM makers cope with computer chip shortage

By Karen Hanna

Prospective buyers of cars, resin and even toilet paper have all been frustrated by disruptions in the supply chain during the course of the COVID-19 pandemic.

For companies that pride themselves on supplying Industry 4.0 technologies, the shortage of computer chips has posed challenges.

Michael Wittmann, managing director of the Wittmann Group, for example, acknowledged that the maker of injection molding machines and auxiliary equipment has experienced problems in its production planning, but it is working to find ways to counteract or prevent disruptions.

“However, the current global supply situation for many computer chips and other electronic components is rather unique in its severity and duration,” he said.

Engel Group CEO Stefan Engleder said his Schwertberg, Austria-based company, too, has dealt with the problem.

“Like the entire global industry, Engel is affected by the shortage of materials, especially semiconductors and the availability of containers for sea transport. However, with our global production network and our dual-sourcing strategy, we are fundamentally well-positioned. Several times a week, we speak with our suppliers in order to counter emerging problems as early as possible,” he said.

While his company has worked to absorb the effects of the disruptions, Wittmann said the effects could be felt downstream.

“One effect of the sluggish receipt of electronic components is a possible extension of delivery times for specific products. Another is the inability to increase our production capacities to meet current demand,” he said. “Installed machinery and equipment are not affected by the shortage, as dedicated stock levels of components for spare part usage are maintained.”

Engleder said both the pandemic and political conditions in some areas have contributed to the problem, but said Engel has found work-arounds.

“With our decentralized production, we are able to deliver at all times because we can redirect orders to another plant if necessary,” he said.

Meanwhile, Engleder also acknowledged continuing disruptions in the resin supply chain will have an impact on prices in machine manufacturing.

“The markets are overheated, and rising inflation is aggravating this effect. This will also have an impact on prices in machine manufacturing,” he said at a press conference a few weeks ago. 

Karen Hanna, senior staff reporter 

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