The UK electronics industry has been hit hard by supply chain issues in recent years, with excessive component price rises due to shortages and manufacturers holding excess inventory due to unavailable stock to complete orders. These problems have been exacerbated by the global shutdown due to Covid-19 and the 2021 Suez Canal obstruction, which has highlighted the fragility of just-in-time supply chains.

The shortage of electronic components is not a new problem, but it has become increasingly acute in recent years. One of the main causes of the shortage is the increasing demand for electronic devices, especially smartphones and other mobile devices. At the same time, the supply of electronic components has been disrupted by the Covid-19 pandemic, which has led to factory shutdowns and shipping delays around the world.

The 2021 Suez Canal obstruction added to the problems by disrupting the flow of goods and further exposing the fragility of just-in-time supply chains. Just-in-time supply chains rely on precise timing and coordination between suppliers and manufacturers to ensure that goods arrive at the right time and in the right quantity. Any disruption to this delicate balance can lead to delays and shortages.

The excessive component price rises due to shortages have also been a major issue for UK manufacturers. The shortage of electronic components has led to increased competition for the available supply, which has driven up prices. This has made it difficult for UK manufacturers to remain competitive, especially when competing with manufacturers in Asia who have access to lower-priced components.