Broken supply chains in the industrial automation market
The COVID Pandemic Transformed the Global Economy
The COVID pandemic has significantly impacted the global economy. Markets worldwide suffered due to lockdowns, border closures, and transportation disruptions. Many companies reduced the production of industrial components, leading to supply chain crises. The shortage of raw materials created major supply issues. Additionally, rising container shipping costs and reduced maritime transport from China exacerbated the situation. European businesses are now struggling with the consequences of disrupted supply chains.
What About Production?
Closed borders severely limited business travel, and many manufacturing plants faced difficulties maintaining their workforce. The first lockdown phase resulted in stockpiles of finished products, but soon after, industrial parts became scarce. Factory managers were left wondering—what’s next for production? The uncertainty was overwhelming. Stabilizing production amidst disrupted supply chains proved challenging. The lead time for some automation equipment extended from 4–6 weeks to an alarming 4–6 months. When time is critical due to long lead times, you can source urgent parts through fast industrial deals and minimize production downtime. Keeping normal operations under such circumstances became nearly impossible.
Border Closures and Their Consequences
Closed borders didn’t just affect workers; they also impacted industrial machinery. Many companies rely on technical support for machine maintenance and repairs. Travel restrictions and quarantines in different countries caused production delays. What happened to industrial equipment and production lines ordered from abroad? Many couldn’t be delivered, and prolonged restrictions even led to the bankruptcy of machinery suppliers. Some investments will never be completed.
Challenges in Industrial Automation
Although most countries have controlled the virus’s spread, problems persist. Projects that were put on hold are still waiting for implementation. Companies that had to freeze investments now want to restart them. However, the industrial automation sector is struggling with shortages of automation components and long wait times for obsolete equipment.
It Could Have Been Worse
The automotive industry had already experienced a downturn by the end of 2019. The following years did not bring recovery. Companies like Volkswagen and Fiat temporarily shut down factories and halted production. While the technology and electronics sectors fared better, they still faced raw material shortages, particularly in rare earth metals. Disrupted supply chains in this industry are difficult to rebuild. Even major players like Samsung have considered temporary production halts. The electronics market is under strain, and factors such as cryptocurrency miners buying up graphic cards are further depleting available stock.
Opportunities for Local Markets
Disrupted supply chains present an opportunity for local markets. Developing new sourcing networks for industrial parts and components could be a game-changer for adaptable businesses. Flexibility, innovation, and new business models will be crucial in mitigating warehouse shortages.
Fixing Broken Supply Chains
Marcin Krzączkowski, founder of Automa.Net, explains, "Automa.Net was created to fix broken supply chains. Companies across Europe and beyond can buy and sell spare parts, both new and used." This platform allows businesses to find missing industrial components and sell surplus inventory they no longer need. Additionally, integrating Automa.Net into procurement systems enables direct ordering without relying on third-party services.
Securing the Future
The crisis of 2020 will have long-term consequences. Broken supply chains won’t be rebuilt overnight. Now is the time to develop robust security systems for the future. Logistics continuity is critical, especially for manufacturing companies. Cost efficiency and smooth implementation are essential for industrial automation and robotics integrators. Implementing the right procedures will ensure a more stable and efficient logistics network moving forward.