Subject:
Electronic Component Shortage 2024 (May 23, 2024)
Prayer Request:
Electronic Component Shortage 2024
With supply chain news flying everywhere since early 2020, you've probably found it hard to translate the specific impact to your business.Get more news about Brand New Electronic Component,you can vist our website!Unfortunately, we predict lingering electronic component shortages in 2024, even though demand dipped at times in 2023.
Take the infamous semiconductor crisis. Industry lead time trends for these complex electronic components exploded from 8-12 weeks in early 2020 to an entire year in late 2022. (It's not all bad news -- delays got shorter late in 2023 and might continue dropping in 2024.)What can your business do to address its specific product lines and shortages? Start by admitting the map you drew in January 2020 won't help you find the treasure today -- there aren't so many fish in the seas these days.There are at least five shortage influences you should be tracking. We'll also share five action plans for managing part shortages so your project avoids delays and swelling costs.
COVID's Ripple
Don't discount the effect that worldwide factory and mine shutdowns in 2020 and 2021 still have today. While production has nearly reached pre-pandemic levels, the industry is still feeling the aftershocks of raw materials sitting unmined and factories diverting schedules to produce COVID supplies. Just look at the semiconductor shortage.Component Hogs
High demand in commodity electronic component markets - like auto, consumer, and IoT - have sucked up supply, leaving others to fight for scraps. During COVID's worst stretches, housebound consumers bought more personal electronics to pass time. Outside the home, vehicles have integrated more electronic technology, and "smart" appliance and tool manufacturing have taken off.This competitive scene tapered off slightly in 2023. Data suggests the potential for a continued downturn in demand for electronic equipment and chips in 2024.Political Conflicts
Russia is a major supplier of metals and minerals common in electronic parts, and war sanctions wrecked the flow of that supply. The impact is on both sides - Ukraine's top two semiconductor-grade neon producers, responsible for 90% of U.S. supply, closed their doors when attacks began in early 2022.
Who's Going to Make Them?
In a sad bit of irony, lead times for chip-making equipment is at 18-30 weeks. (At least it's improving from the 18 months buyers experienced in 2022.) What's worse, there's a lack of skilled electronics laborers to fill these factories, forcing some of them to delay launch.As for the parts themselves, they're ... tricky. The complexity of their manufacturing process, which can take up to 6 months, is partly to blame for the crisis.Again, the issue is one of not just product shortages, but also labor and material shortages. No copper means selecting industrial cable gets harder. No resin means no plastic for vital components of an assembly. So, what's a sourcing employee to do?
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