Electronic component shortages 2021
Global shortage on electrical components
Multiple environmental and demand factors means there is a current strain on the global electrical component market. The market has always been back to back from supply to manufacture and with the added factory closures through COVID, COVID related shipment delays and a global increase in the EV market, the component industry is stretched.
“Electronic component shortages have been a hindrance on a booming electronics marketplace throughout 2018, 2019, and into 2020. While new orders roll in and production remains steady, there simply haven’t been enough capacitors, resistors and other parts to go around.
An IPC survey from mid-February 2020 found that around 65% of electronics manufacturers were experiencing component shortages.”
In a report from McKinsey, the demand for semiconductors is predicted to increase in 2021. Automotive electronics particularly seems to be on an upward trend, set to see “year-on-year growth of 28 to 36 percent.”
Electrical component lead times are at the highest levels in six years and capacity is getting tighter. Some suppliers are in ‘full allocation’ limiting flexibility.
In order to support electrical manufacturing businesses with managing lead times, ensure you map out & plan product demand and orders with plenty of lead time. Lead time for components are in some cases up to 9 months.
If you are thinking about ordering or you are working on current contractor projects where the sourcing of electrical components e.g. LED lighting are needed make your orders ASAP to avoid mass delays.
Contact our teams now for contractor electrical supply solutions.
