Although the electronics supply chain has been dancing around the issue of double ordering for several quarters, a recent Morgan Stanley report finds there’s been a “significant uptick” in double ordering that has extended component lead times even further. Evidence of double ordering also has analysts questioning the sustainability of the current component-demand upcycle. “To…
Significant change is coming to the manufacturing arena. As artificial intelligence, the industrial IoT and the smart factory begin to transform production, Intel Corp. is gauging the impact such technologies will have on manufacturing and the supply chain — and the humans that oversee these complex operations. The benefits of smart factories are many: autonomous…
U.S. electronics companies are feeling the pressure of widespread component shortages, according to the Institute for Supply Management’s latest report. Although the overall U.S. manufacturing index — the PMI — remains robust, supply constraints and extended lead times have caused some computer and electronic companies to delay or even miss sales opportunities. “Supply constraints, extended lead…
The pace of U.S. factory activity surged in December, propelling the manufacturing industry to its best year since 2004. The Institute for Supply Management’s leading index, the PMI, grew by 1.5 percent to reach 59.7 percent in December. That brought 2017 to an average PMI of 57.6 percent. “This is the second highest number in…
Whether it’s called the open market, independent or non-franchised distribution, the channel that buys and sells excess and obsolete electronic component inventory has changed. A growing number of companies in this niche have ratcheted up their procurement and quality-control practices to the extent that component suppliers and many OEM customers acknowledge independents as a vital…
The U.S. manufacturing sector is poised to close 2017 as a year of expansion. Despite back-to-back hurricanes that disrupted a major center of oil and chemical processing and shipping in the late summer, U.S. production increased by nearly 3 percent in November to 63.9 percent, setting the nation’s factory index at 58.2 percent. Although the…
High demand for electronics components is likely to continue through at least the first half of 2018, according to the industry’s largest distributor. Andy King, president of Arrow Electronics Inc.’s global components business, said demand has remained consistent across all geographies and all vertical markets. “It’s not being driven by any one end-market,” King told…
October was a mixed bag for the U.S. manufacturing industry as some sectors benefited from hurricane recovery efforts while others suffered. A shortage in the resin market resulted in price increases, inventory constraints and increased lead times for computer and electronics products, according to one executive. Resin is among many chemicals processed in the Houston…
You can’t really blame financial analysts for their skepticism on current component demand. The last time the electronics supply chain took orders at face value the industry was left with $13 billion in semiconductor excess alone. Everyone from component manufacturers through OEMs had to write down or write off millions of dollars’ worth of inventory. At…
As Baby Boomers make way for Millennials in the high-tech workforce, a new generation gap is yawning. The population reared in the digital age is engaging with colleagues whose golden rule is face-to-face communication. The current electronics market will test the skills of both generations. The electronics supply chain hasn’t faced a severe components shortage…