digital transformation, supply chain, predictions

10 Global Supply Chain Predictions for 2019

The electronics supply chain, for the past year, has been marked by component shortages, lead-time extensions and tariff uncertainties. Nevertheless, it’s been a good year for component manufacturers and distributors—many of which have reported record quarterly sales during 2018. In 2019, IDC projects, the supply chain writ large is poised to transition from a cost…

shortages, warehouse, manufacturing,

U.S. Manufacturing’s Humming—Except for Shortages and Tariffs

U.S. manufacturers that rely on access to electronic components are on the brink of not being able to fulfill their customers’ orders. But manufacturing is still humming: The Institute for Supply Management’s leading factory index, the PMI, increased by 1.4 percent in May to 58.7. However, comments from the computer and electronics sector indicate OEMs…

double ordering

Double Ordering of Electronic Components Hits ‘All-Time High’

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…

Allocation 2017: What’s Behind the Component Shortage

Component shortages are not just about increased demand. Any number of factors – production capacity, supply chain disruptions, obsolescence and technology migration – can contribute to product scarcity. For 2017 and 2018, supplier merger and acquisition (M&A) activity can be added to the causation list. Semiconductor and tech mergers reached an all-time high in 2016 and formed…

Semiconductor Sales On Pace For Record Year

The semiconductor industry has every reason to be optimistic for the rest of the year. Global semiconductor sales registered their highest-ever quarterly sales increase during Q3 to $107.9 billion; and optoelectronics, sensors, actuators and discretes (OSD) are on track to set record-high annual revenues in 2017. The Semiconductor Industry Association (SIA) reported global Q3 chip sales…

Why Analysts Are Skeptical About Component Demand

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…

Component Shortages to Last ‘Longer Than Expected’

There’s no short-term relief ahead for electronics manufacturers that are scrambling for components. Tight supplies of capacitors and resistors are expected to last into mid-2018—longer than industry experts expected. The dreaded words “allocation” and “double-ordering” are coming up more frequently, meaning OEMs and EMS providers are facing long-term sourcing challenges. Thick- and thin-film chip resistor…