If you're looking for DJ or production equipment in 2021, you may have observed two major trends. It's really difficult to obtain gear right now almost everything is out of stock, and costs appear to be rising. we'd give some very crucial background to the present status of the music gear market.
We are going to explain what's going on in the business and why you could have difficulty getting equipment this year and the following months...
An overview of the current issues in the music gear industry.
Consumers in 2021 will be familiar with price rises and supply shortages across industries. Certain have labeled this "new reality" as inflationary, however in the dance music gear sector, there are some very unique characteristics that lead to a high demand and limited supply situation.
DJ TechTools has recently done an analysis on why this is all happening. It has given us a front-row seat to what is shaping out to be one of the strangest years in the history of the music gear business.
Here's what's contributing - we'll go through each in more detail in the sections following.
Component and labor costs are rising.
These two cost hikes are having a significant influence on physical products manufacturing all across the world. There are several reasons why labor prices are rising (an ongoing pandemic, a labor shortage, local lockdowns, and many more). Increases in labor expenses might have a knock-on effect on component costs.
Raw resources have resulted in a considerable increase in component prices. A perfect example is audio cables (such as our own Chroma Cords), which all rely on copper for the actual wires inside the cables. According to our own component sourcing, raw copper costs have virtually quadrupled in the last year.
Ocean/Air Freight is a shambles
Ocean freight is significantly responsible for the availability of consumer goods supply chains (such as that new DJ gear you've been eyeing). It enables things to be built in a market where components and skilled labor are easily available, and then sent all over the world at a fair charge to any destination in about a month.
The "failure" is that ocean freight has been routinely overbooked and delayed in recent months, with little signs of improvement.
As a result, ocean pricing, businesses paying a premium to ensure space on a ship, and air freight prices have risen, companies paying a lot more to get their goods faster. Needless to say, air freight is significantly worse for the environment until we find out how to move cargo without using jet fuel.
The good news is that supply chains can adjust to increased lead times, but it will continue to contribute to many out-of-stock items in the near future.
There is also a scarcity of semiconductors. The majority of the supplies will first go to the largest corporations with the largest contracts (e.g. Apple). Because DJ equipment is more specialist and serves a smaller market, it will not get priority access to semiconductors like phone and computer manufacturers.
The chip shortage due to manufacturing snags has had a massive impact on the European and US economy, hindering auto production and driving prices higher.
As a result of worldwide Covid-19 lockdowns, people were forced to stay at home, got bored and looked for entertainment. "There was a massive increase in demand for chips driving laptops, cell phones, notebooks and personal computers, medical devices.
Prices of semiconductors have been climbing since the last quarter of 2020 amid a global supply crunch. But news that Taiwan Semiconductor Manufacturing Co. was preparing its biggest price hike in a decade still came as a shock to some, bringing home just how entrenched chip price inflation has become.
TSMC owns more than half of the worldwide foundry business, producing semiconductors for companies such as Apple, Nvidia, and Qualcomm. According to industry insiders, the Taiwanese business, known for its cutting-edge technology and outstanding quality, often charges manufacturing fees that are roughly 20% more than its competitors.
Fortunately for those of us in the DJ world, events have resumed this year, with vaccination and pandemic best-practices becoming a reality in many areas of the live events industry. Even still, there is obviously less demand for festival-level gear, which produces a large portion of our industry's income. Events are clearly not back to "pre-pandemic" levels, and this has resulted in more cautious purchasing by corporations across the board.
What does this mean for DJs?
Don't underestimate the practical effects of the aforementioned problems on our industry. Pioneer DJ, for example, recently hiked the pricing of several of their items by 2-4 percent and prolonged lead times for some of their finest gear. we've heard we could not have some Pioneer DJ and Denon DJ Equipement back in stock until February 2022...
Here's what we believe every DJ should be thinking about right now:
If you’re looking to buy DJ gear or production hardware in the next 6 months, start thinking about it now.
Don’t expect prices to go down later. Often there is a high expectation of Black Friday being the driving force for discounts in our industry, but with supply so low, getting your hands on what you want should be the first priority.
The used market is going to be a good source of gear – but you’ll be paying inflated prices.
You want to learn how to dj like a pro? Now it's time to get started!
Join our on site our DJ courses. You'll be able to use, beatmatch, and mix with USB, vinyl and even Laptop, like a pro at the end of these lessons. You will have a complete comprehension of the DJing art.