IABM COMPONENT SHORTAGES SURVEY PAINTS BLEAK PICTURE FOR MEDIATECH SUPPLIERS
IABM has just published the
results of its second electronic
components supply survey. The
picture is bleak, with lead times
lengthening and component prices
rising significantly since IABM’s last
survey in April 2021. Respondents also
sounded the alarm on their financial
positions if component supply
problems persist for a further 12
months; there are very few signs that
the situation will improve in the shortto-medium term.
97% of technology vendors
reported being significantly affected
by component shortages - 63% saying
they are severely affected (up from 40%
in the April 2021 survey), 34%
moderately affected and just 3% mildly
affected (15% April 2021).
The survey finds that lead
times for components have increased
by an average of 74% and component
costs by 44%, resulting in a 26% impact
on final product costs.
Perhaps most worryingly, 86%
of respondents reported facing
moderate or severe impact on their
financial sustainability if the issues
persist for another 12 months.
The survey also asked how
companies were mitigating the effects
of the shortages on their operations.
65% are stockpiling components and
63% are redesigning products.
“The findings of our first
survey on supply chain problems with
electronic components last April
painted a worrying picture for our
industry,” said Peter White, CEO,
IABM. “The results of this follow-up
survey demonstrate that the position
has deteriorated further in the
intervening months, and will result in
significant financial impact if the
problems continue for the next 12
months.
“With no early prospect of the
component shortage problem being
resolved, many MediaTech companies
have responded by redesigning their
products to mitigate issues with
sourcing specific components, and/or
stockpiling components where
possible to keep their production lines
flowing in the face of dramatically
increased lead times. There is also
evidence of component price increases
which will either need to be absorbed
by MediaTech suppliers or will feed
through into increased end-product
prices.
“I would like to bring the BaM
Stock Exchange™ to the industry’s
attention. We launched this last year
to enable IABM member companies
around the world to list their excess
stock using internationally accepted
parts codes and descriptions. IABM
member companies who are
experiencing shortages can search the
BaM Stock Exchange™ listings to
quickly discover if parts they require
are available. It is a value-added
service designed to keep short supply
components within the industry to the
benefit of all. I have been surprised that
not many companies have taken
advantage of the BaM Stock
Exchange™ so far; perhaps this is the
moment for them to do so," White
concluded. ?