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Supply Chains Under Pressure from Triple Threat
The global electronic supply chain is currently navigating through a complex and challenging landscape.
A combination of rising overdue payments, a persistent labor shortage, and ongoing inflationary pressures is causing significant disruptions in supply chains worldwide.
Rising material costs and labor shortages are broadly impacting businesses, consumers, and the global economy.
The Growing Burden of Delayed Payments
Recent data from Taulia shows a sharp rise in overdue payments within global supply chains, with more suppliers facing delays beyond 45 days.
This places heavy financial pressure on small and medium-sized businesses, which often struggle to manage prolonged payment delays.
Bob Glotfelty, Chief Growth Officer at Taulia, emphasizes the urgent need for working capital solutions during these disruptions.
The EU is considering a 30-day payment limit to help SMEs, but some large companies argue this could increase costs for consumers.
Delayed payments can destabilize the supply chain, leading to reduced production, layoffs, and shortages, driving up consumer prices.

Labor Shortages and Increasing Wage Pressures
The global pandemic has had a lasting impact on labor availability, especially in trucking, warehousing, and manufacturing, where a shortage of skilled workers has driven up wages and operational costs.
This situation is exacerbated by shifting worker expectations for better compensation, benefits, and work-life balance.
The shortage of workers has caused significant disruptions, including delays in trucking and manufacturing struggles to meet demand, contributing to rising inflation and logistical challenges.
The global driver shortage is worsening and is expected to double in the next five years, making it harder for transport companies to maintain and expand their operations.
Inflation’s Wide-Ranging Effects on Operations
Inflation is a major challenge for supply chains, driving up costs for raw materials, energy, and transportation amid ongoing disruptions, labor shortages, and geopolitical tensions.
This results in higher prices for consumers and increased expenses for companies, who may absorb some costs to stay competitive, but this can erode profit margins and limit growth.
Additionally, inflation contributes to rising late payments, as businesses use supplier credit to avoid high-interest loans, with costs passed on to consumers or absorbed by suppliers.
Strategies for Strengthening Supply Chain Resilience
To navigate today’s turbulent electronic supply chain environment, businesses must adopt proactive strategies such as diversifying suppliers, investing in technology, and focusing on sustainability.
Serendipity Electronics can support these efforts by providing access to a broad network of reliable, global suppliers and advanced electronic components.
While government action on infrastructure and trade is crucial, embracing innovation and collaboration will help companies thrive.
Serendipity Electronics is here to help you build resilience and stay ahead in a challenging market.