Shortage of microchips: kitchen designers (also) are getting organized

The lack of microchips also affects household appliances and therefore kitchen designers. Ovens, dishwashers, microwaves are subject to waiting times unless solutions are found such as wholesalers or storage.

Cars, game consoles, boilers, wood pellet stoves, household appliances, the lack of electronic chips leads to cascading shortages. Kitchen designers are directly affected in terms of household appliances with longer waiting times for customers… unless a solution is found.

For Emmanuel Franzoni, manager of Atlas, this problem is not recent. He places it more precisely at the start of the health crisis. The supply of Chinese chips was limited from that time onwards due, in particular, to the closing of factories. Other reasons are added to the phenomenon.

Three different solutions for chips

Emmanuel Franzoni explains above all that all the major brands of household appliances depend on the same manufacturer of electronic components, that a dependency has been created and that the entire market is penalized.

For him, orders have really fallen behind for 18 months and more particularly in dishwashers and ovens. “There are still some difficulties with an improving trend. He says that previously it was necessary to wait three to four months to have an oven with, sometimes even, a total lack of visibility among the manufacturers.

Walk in network

Today, the phenomenon is far from being resolved but the Chaumont manager considers the situation “manageable because he is part of a large group”. In other words, he has a certain latitude and a certain power of adaptation thanks to his strike force. He says: “When a supplier claims to be out of stock of ovens or other household appliances, we look for an outside lead. We are going to the wholesalers, going as quickly as possible to repatriate the device”. He speaks of an essential network that must be sought out, solicited to “thus avoid all dependencies”.

For Excellence Cuisine, Maurizio Failla adopts another solution. He notes delays “up to six months for dishwashers and microwaves” and to overcome this, he has chosen to stock flagship products. Its working capital in equipment is now much larger to satisfy its customers who nevertheless remain understanding. The man goes so far as to advise these same customers to buy their household appliances themselves, knowing that it is a service in addition to the shop.

Price increase

The third solution to these shortages is to offer customers brand changes. Most often, with good grace, they consent. The problem is more on the side of the increase in tariffs with the rise in the price of raw materials (steel, wood, plastic, etc.) and transport.

Emmanuel Franzoni fears that suppliers will take advantage of this price increase to never lower prices again. It nevertheless remains positive in estimating the buoyant kitchen market. Observer, he sees residential areas being built and he knows that the kitchen has become a priority. Suddenly, for him, it would be a shame to be slowed down by this economic disturbance which he hopes will be resolved in the months to come. He wants to be positive.

Frederic Thevenin

f.thevenin@jhm.fr

Relocate to master

The lack of electronic components is therefore due to production lines in China, which are idling and which, in a context of economic recovery with strong demand, are struggling to catch up with the accumulated delay. Added to this are increases in the price of raw materials such as cobalt and transport with the rise in the price of oil and therefore containers on the seas. Prices have tripled.

These transport problems promise to last over time with a shortage of containers in 2022 and blockages in the ports. The situation is such that several manufacturers have decided to relocate part of their production as close as possible to their markets – and in particular to Turkey – to be less dependent on maritime transport.

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