The latest on component supply chain

Back in November we reported that the whilst many manufacturers are working to expand to improve production capacity, it is unlikely to be realised in terms of component production until 2023 at the earliest. Unfortunately, the situation doesn't seem to be improving. Here's the latest situation.

COVID-19 is again having a major impact on the supply chain throughout Hong Kong and some regions of China. Although the country's infection numbers are relatively low, the authorities are enforcing a "zero tolerance" strategy to find and quarantine every infected person.

This is causing both extended delays with transportation and now in some areas a complete halt to production and transport.

We continue to monitor the situation and find the most effective way to move those goods that are not in restricted areas. 

We also have the awful situation of the War in Ukraine, who’s people and all those affected are in our thoughts and prayers. While at present the direct effects of this on the supply chain are limited, the impact on the global movement of goods and services has been significant. Russian airspace has been closed to many countries; as a result shipments have been rerouted, sometimes resulting in slower or more expensive modes of transport. This adds additional pressure to an already overloaded system with many carriers stranded at ports due to the ongoing situation.

Consider alternative components to keep production moving

The electronics sector has been hit particularly hard over the past two years. We operate a global supply chain management system and our procurement teams can often track down components that are difficult to obtain. 

In addition our high level of engineering expertise means we are able to recommend alternative components, or design alternative solutions, for components that are made end of life or have a high risk of obsolescence.

We remain commited to our close relationships with both customers and our supply partners. This collaborative approach offers the best chance to reduce the effects of supply chain disruption.

Contact us here for any questions you have regarding component supply.