By David Edmonson, Vice President, State Policy and Government Relations

Over the past two years, global supply chain disruptions substantially impacted American consumers and businesses of all sizes across a wide variety of industries. The global supply chain is fragile and fundamentally challenged by structural vulnerabilities including materials shortages, labor supply issues, and global transportation challenges exacerbated by the COVID-19 pandemic. At the same time, the post-pandemic economic recovery significantly fueled increased demand for goods and services, causing further supply chain pressures.

The ongoing global shortage of semiconductor components, combined with a surge in demand for IT products, has caused many of TechNet’s member companies to extend lead times across most product lines. Material shortages across the semiconductor industry continue to impact global supply chains, slowing output across multiple industries from automotive to consumer electronics and beyond.

Our member companies rely on semiconductors and other critical components to enable their products and services to reach consumers and the public sector, contribute to America’s innovation economy, and strengthen our global competitiveness.

As forty-six states’ fiscal years come to a close in June 2022, these supply chain constraints could have an impact on the funds authorized for technology improvements if supply chain delays continue to push product deliveries beyond the end of the fiscal year.

To strengthen America’s global competitiveness, foster a climate of innovation that ensures consumers can thrive, and protect communities from evolving security challenges, states must continue to invest in updating critical technologies. As each state considers their rules that enable funds to be carried forward into the next fiscal year, TechNet stands at the ready to help governors and legislators as they navigate this unprecedented issue to meet the needs of constituents. We are committed to working with state governments as they adapt to such challenges, and we continue to support efforts to ensure the public sector’s continued access to impactful technology improvements.

In the short term, due to the limited availability of certain components paired with support challenges, customers and partners may begin seeing changes to their current estimated shipping time. TechNet member companies have and will continue to take sweeping, proactive actions to mitigate the impacts of these supply chain constraints by qualifying alternate components where technically possible and partnering with suppliers for priority on materials and capacity.

TechNet is committed to working with state governments to navigate these unprecedented times and ensure the best possible outcomes for America’s consumers, businesses, and innovation economy.