4 ms·
Not really...this bullwhip is not really created by customers but by each step of the supply chain increasing inventories as the supply chains had issues and it
by j_walter 4y ago
Not really...this bullwhip is not really created by customers but by each step of the supply chain increasing inventories as the supply chains had issues and it's not something you can just be organized about and avoid. Not to mention when you see slowdowns at the supplier/manufacturing side the cycle time of products gets faster so the industry customers can delay ordering...just causes a super drop off in production but it should be short lived.
- marcosdumay 4y agoBy 2020, when production felt, prices rose and semiconductor profits got into unprecedented levels, there was a lot of speculation on whether it would destroy a lot of companies. It is starting to look like the doom predictions were the correct ones. The drop-off is sustaining itself for a while already. Anyway, the US intervention on the economy being extremely pro-cyclic for the semiconductor industry certainly didn't help.
- j_walter 4y agoSemiconductors used to be very cyclic...pre-2008. I would say demand has been extremely strong across most semiconductor products for at least the last 15 years now...with no real drop except maybe a tick in 2019 right before COVID hit.