The industry has been feeling the squeeze from appliance shortages for the past few years. If you’re a cabinet maker, millworker, or contractor, you’ve probably experienced frustrating delays that slow down your projects and create go-backs. But why is this happening? In a recent interview, Dominic Rubino sat down with Mike Konrad to break down the real reasons behind these delays—and what you can do about them.
The short answer: It’s not just one thing. There are 13 reasons why appliances are in short supply, and they all came together to create a perfect storm of supply chain disruptions. Here are some of the biggest factors:
Most modern appliances rely on computer chips to function. When global demand for electronics surged, chip manufacturers prioritized high-paying industries like aerospace and medical over appliances.
Many factories were forced to close or slow down due to pandemic restrictions. Even though we’re past the worst of it, the ripple effect is still being felt in supply chains.
For years, manufacturers ran on Just-in-Time (JIT) inventory, meaning they only produced what was immediately needed. When supply chains broke down, companies didn’t have enough stock to meet demand.
People stuck at home during the pandemic started remodeling, and stimulus checks fueled a boom in appliance sales. Manufacturers had already cut production, expecting a slowdown—so they were caught off guard.
Tensions between the U.S. and China, plus new trade tariffs, created additional hurdles for manufacturers sourcing parts and materials.
A historic drought in Taiwan severely impacted TSMC (Taiwan Semiconductor Manufacturing Company), which produces 63% of the world’s semiconductors. With limited water supply, chip production suffered.
Appliance manufacturers anticipated an economic downturn and cut production too aggressively. Then, once they realized demand was up, they struggled to ramp back up. Meanwhile, big companies started hoarding available chips, leaving smaller industries like appliances with even fewer resources.
If you’re installing cabinets, millwork, or appliances, you’ve likely been dealing with frustrated customers asking, “Why is my fridge taking six months to arrive?” While we can’t control global supply chains, there are ways to work around these issues:
✔️ Order appliances early – Advise clients to choose and purchase appliances at the start of a project, not the end.
✔️ Communicate clear timelines – Set realistic expectations with homeowners and explain the delays.
✔️ Consider alternative suppliers – Look into different brands or distributors that may have stock.
✔️ Stay updated on trends – Knowing why these shortages happen can help you plan ahead and avoid surprises.
Yes—but slowly. The U.S. is investing billions in semiconductor manufacturing to reduce reliance on overseas production, but new chip factories take 4–7 years to build. While some industries are recovering, appliance manufacturers are still playing catch-up because they were low-priority customers for chip suppliers.
Understanding supply chain challenges helps you stay ahead of the game. The next time a customer asks about delays, you can confidently explain the real reasons behind them—and offer solutions to minimize the impact on their project.
Guest: Mike Konrad | Site | Reliability Matters
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