The Global Chip Shortage Will Have a Major Impact on Consumers

Computer mother board

The global chip shortage is beginning to impact consumers, driving up prices of smartphones, vehicles and personal electronics as manufacturers struggle to keep up with rising demand.

“We’re seeing 5% to 10% price increases right now,” Glen O’Donnell, vice president and research director at Forrester, told the Daily Caller News Foundation. “They will increase more as this issue drags on.”

Semiconductors, the internal components essential to the functioning of almost every electronic device, have been in short supply since early 2020 due to high consumer demand of mobile electronics cloud services, and other products that require computer chips, according to O’Donnell. The COVID-19 pandemic exacerbated the problem by stalling semiconductor production and disrupting supply chains, with demand for consumer electronics only skyrocketing due to more people working from home.

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Top Economists Expect Inflation to ‘Accelerate Strongly’ in Coming Weeks

Woman shopping

Economists expect inflation to “accelerate strongly” in the coming weeks and months, but said consumer prices would eventually moderate.

The consumer price index (CPI), a common measure for inflation, is expected to rise 2.8% in 2021 and 2.3% in 2022 compared to the 1.2% increase that occurred in 2020, according to economists surveyed by the National Association for Business Economics (NABE).

The projection, released Monday, reflected the Federal Reserve consensus that inflation will heat up by the end of the year before cooling down as the economic recovery continues.

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Leading Schools Series: Wisconsin School Runs a Manufacturing Business Within its Doors 

Machine shop training in public high schools has dwindled nationally either because of a lack of funding or no funding at all. So in 2006, instructor Craig Cegielski approached the Eleva-Strum School Board in Strum, Wisconsin with an odd request. Rather than asking for money, Cegielski instead requested permission to launch an in-school manufacturing business.

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Fiat Chrysler Proposes Merger with France’s Renault

  Fiat Chrysler proposed a 50-50 percent merger Monday with Renault, a union that would create the world’s third biggest automaker. The merger, if it happens, would vault the new company, with annual sales of 8.7 million vehicles, into a position ahead of General Motors and behind only Volkswagen and…

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New Data Suggest Continued Expansion in the Manufacturing Sector in February

by Robert Hughes   The Manufacturing Purchasing Managers’ Index from the Institute for Supply Management registered a 54.2 percent reading in February, down from 56.6 in January (see top chart). Despite the pullback, the index remains well above neutral, suggesting continued expansion for the manufacturing sector. According to the Institute…

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