The shortage of components can have an effect on everyone.
It can be hard to get hold of the components you need in the future. We’ve taken a look at the situation and have compiled a few recommendations.
Electronic manufacturers all over the world are facing problems finding the components they need. Noca was warned early on of the problems experienced by suppliers, allowing us to stock up. We have therefore not been affected to a great degree by the global shortage. We encourage our customers to place their orders as early as possible so that we can find the components that will offer the best in terms of price and delivery times.
If there are problems with components you plan to use, early notice will mean we can find alternatives, and that you can let customers and stakeholders know of changes or delays as early as possible.
Long delivery times
«The shortage of components is a real challenge faced by our industry. I can see that the delivery times for certain popular components have grown from 6-8 weeks to 25-32 weeks. Luckily, we have good routines in place at Noca and can often find alternatives,» says Purchasing Manager Martin Roksvaag at Noca AS, who adds that the trend towards growing shortages began to level out over the last month. Nevertheless, there are few indications that the problems with components are over just yet.
Problems piling up
Access to electronic components is on the way to being historically low, leading listed companies are losing a lot of money on low component availability, and even Google is struggling to find components to produce one of its core products. Making things worse is what some name the ‘copper crisis for circuit board manufacturers”. The authorities in China, the world’s second biggest copper producer, have decided that 90% of the country’s copper is to be reserved for car batteries.
Prices also on the rise
Not only has it been harder to find the right components, but prices are also going up. Wholesalers and brokers specializing in bulk purchase of components are currently making healthy profits from growing demand, especially after a fire at one of the factories supplying major manufacturer Diodes Incorporated delayed deliveries for a few weeks.
The biggest electronic manufacturers such as Apple and Samsung have bought up huge volumes of components due to the shortages, and will continue to do so for some time to come. Demand continues to rise, and there are few indications that manufacturers can supply the volume the market needs before early 2018.
What can you do?
Apart from placing orders early, Noca’s customers can gain predictability through a product analysis, the same as Kongsberg Maritime performs on all new products. The analysis makes production more profitable and predictable.
The earlier the better
Our best advice remains placing orders as early as possible, so that our experienced purchasing team has sufficient time to purchase full-value components at the best possible price. «As always, good dialogue is important – from us and from our customers. Noca is well prepared for the situation, has taken the necessary precautions early and is happy to give tips and advice to our customers», concludes Roksvaag.
Place orders early before the next production run – contact us!