IABM has published the results of its second electronic components supply survey.
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 short-to-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.”