MOKOLight LED manufacturing supply chain, like any other industry, has been affected to a large extent by globalization. A large number of LED products have been manufactured in response to macroeconomic shocks such as tariffs and the COVID-19 pandemic. It is these disruptive events that reflect the vulnerabilities of suppliers.
The manufacturing of LED products has been affected as a shortage of components for integrated circuit chips used for electronics, particularly LED drivers, has extended lead times. Due to LED chips shortages, supplier price increases, and other reasons, some major U.S. LED product manufacturers have raised the price of LED fixtures by 2% to 8% and LED drivers by 9%. To better understand LED manufacturing supply chain issues, this article will take you to learn about the reasons behind the problems and their future trends, in order to make some countermeasures.
Generally speaking, it is not easy to come up with solutions for the global LED light crisis, because even the experts cannot predict a clear future. Some companies react to the ongoing dilemma in LED manufacturing by stockpiling as many chips as possible. But we don’t recommend that all companies do like this, because it can lead to other businesses, especially small ones, having nothing. The best solution is a combination of approaches, including better diplomatic relations, multiple supply chains, better inventory planning, stronger relationships with suppliers, and even sound economic and trade policies.
Specifically, from the manufacturers’ point of view, they must adapt to the circumstances and strive to maintain existing sales and production. Perhaps hiring more staff, adopting better means of production, or finding alternative supplies could help. For users, on the other hand, all they can do is wait patiently before receiving the LED products they want.
MOKOLIGHT has been an LED manufacturer for more than fifteen years and currently has a large stock of high-quality LED products. Our LED chip reserves are sufficient, the price is stable. We have stable and diversified supply sources, free from the impact of the market cycle. We can deliver on schedule, even when the LED manufacturing supply chain is tight. If you have any questions about LED lights, you can consult us online and we are happy to help.