The pandemic has continued to snarl supply chains and cause shipping woes for businesses with Canadian tech companies hit hard, according to Yahoo on Monday (Aug. 30).
For example, with costs soaring as demand for shipping has continued, Canadian companies like circuit board maker Voltera have had trouble acquiring certain parts it needed, including semiconductors, with its plastic manufacturer contracted by the U.S. government to make COVID materials.
Voltera isn’t alone in this regard — many Canadian tech companies have been seeing friction in supply chains and shipping times as the world’s manufacturing has been crippled by the pandemic, per the report. Experts have predicted it could be months before the processes are back to normal. Yahoo reported that it would likely be even longer before those companies can make up for lost profits.
It could take years, for example, to get over the hurdle of the semiconductor shortage. That comes out of the swathe of new purchases of various electronic devices using them as people had to stay home more often as the pandemic set in. Some factories had to close because of the pandemic and other unrelated disasters including a fire at one plant and a cold snap at another.
According to Apple, the semiconductor issue might end up cutting $4 billion from U.S. sales. General Motors, for example, laid off 1,500 workers temporarily after it ran out of chips required for its vehicles. Meanwhile, Canada-based toymaker Spin Master Corp. has ruminated on increasing prices as the situation keeps going.
Construction tech companies have also faced challenges as of late, with the flux of supply chain delays combining with antiquated tech and back-office methodologies. PYMNTS reported that in one instance, the construction tech startup Kattera, backed by AoftBank, ended up closing down in part because of the rising costs of labor and materials.