When we take a look at the global hardware industry the reality is that it has changed drastically over the past decade or so. These changes became even more drastic when the coronavirus pandemic struck the world. Despite all this, it might be somewhat difficult to even comprehend all the changes that this particular industry has been through over the past few years and how it has shifted concretely since the end of the coronavirus pandemic. So, let’s try to take a critical and analytical look at the global hardware industry and the current state it is in compared to what it was before the pandemic. While some changes might not be totally surprising others might be. So let’s take a look at them and see which caused this shift in the industry.
COVID Lockdowns
When we talk about COVID and its effect on the global economy one of the most important aspects to keep in mind of course is the effects of the log downs on the production as well as the economy at large. The lockdowns affected were of course many but one of the most impactful effects of the log dance is that it put a lot of workers on break for an extended period. While this may seem like the most important effect you might be surprised that the actual biggest impact of the lockdowns is the fact that there weren’t many of them in many places. Overall when we look at countries that add more draconian legislation surrounding the treatment of COVID-19 the reality of course is that it kept a lot more workers healthy as well as alive. So it shouldn’t be a shock to anyone that countries like China for example have managed to keep a very productive industry which lasts a lot fewer people than other countries like the United States.
Production of Semiconductors
This might not be the very first preoccupation when we talk about the importance of the hardware industry, but the reality is that semiconductors are in pretty much everything nowadays. Whether you like it or not every company that has tools for sale is over-reliant on the foreign industry that produces semiconductors as well as the tools themselves. This changed a lot because before COVID America added a very strong semiconductor production industry which has fallen off a lot especially when compared to the Asian market producing the same parts and adding much higher quantity. The fact that nowadays every tech industry is over-reliant on the need for semiconductors means that this industry has become extremely large, especially in the countries that did not lose part of their appeal during COVID.
The Move Eastward
While generally a lot of the industries are very strong in America the reality, of course, is that when we take a look at the current economy currently in the many moves in the industries we see that China and many other East Asian countries have grown exponentially over the past few decades i’ve made a massive place for themselves especially following covid. The rise in the economy of China is of course not a massive surprise but it is a big change especially as it is threatening the economic hegemony of America. As we see China become more and more competitive there are a lot of questions that I’ve written about perhaps whether America should change its position towards China economically which is an incredibly massive shift compared to the pre-COVID assessments. The reality of course is that when we talk about China and America’s relationship chances are that nothing much will change but even the fact that people are starting to talk about China in a more positive light for their current role in the economy is a big and important change to mention.
As you can imagine the post-COVID did repercussions on the economy as well as the global hardware industry have caused a very real change in the attitude of many politicians as well as business people. While many people have expected a return to normal for many parts of the industry at large the reality of course is that some of these changes are here to stay especially when it comes to the prominence of the Asian market as well as the presence of Asian companies in Europe. Despite the political maneuvers behind the importance of the European and American trade relationships, the reality is that every country is looking for a good deal and sometimes being able to purchase higher quality goods for a lower price will allow many countries to disregard certain allegiances when it comes to trade. Only time will tell if the actual attitudes towards the Chinese market change and allow for a stronger bond between the West and the East when it comes to bettering the economic state of the hardware industry.
