Stay Acquaint with Electronics Components Shortages

As you are surely aware, suppliers are being forced to report abnormal lead-times, higher prices, and dwindling stock levels.

What are the reasons for such an important storm? Among other things, IoT boom, heavy usage of consumer electronics and the move towards more complex safety and infotainment systems in automobiles, are playing a significant role in raising the demand for electronic components.

In addition, mergers and acquisitions are also involved in the current state of shortages. Indeed, when two suppliers with common product portfolios merge, the vendor base is usually reduced to one, as well as mature lines are phased out in favor of newer and more profitable products. As a consequence, end-of-life notices from suppliers have accelerated within the past year.

But how long will shortages last? Nobody knows for sure, but all agree to say that we are likely to see the electronic components market growth for another 12 months.

“The current component shortage is now expected to last through 2018. Passives lead-times are stretching to 30-plus weeks, according to one research firm, with some orders quoted for delivery into mid‐2019.” https://epsnews.com/2017/11/16/allocation-2017-whats-behind-the-component-shortage/

« Manufacturers are unable to fill the gap in the delivery of parts. The year 2018 will be particularly difficult for the entire electronics industry.» Michel Rodrigue, General Manager / Quebec City, Future Electronics

Overall, it looks like there is a long road to relief. A road on which M2S Electronics undertakes to smooth as much as possible for you.