2018.11.08
Panel discussion on the component shortage
What is the cause of the current component shortage?
We have had favorable global demand for some time now and the Asian middle class in particular has gained increased purchasing power. At the same time, more and more products contain electronics and it has been difficult for production to keep up with the development. Investments in new manufacturing have also lagged behind the increased demand.
Which areas have been hit hardest by the component shortage?
Many product areas have been affected in terms of longer delivery times, but perhaps most notably low-value electronics such as capacitors and resistors, as well as niche technologies within power, memory and electromechanics. The automotive industry is also an industry that has been hit hard by the component shortage with the development of electric cars. An electric car sometimes requires 3–5 times as many components of certain technologies as a ”standard car”.
What are the consequences of the component shortage?
With longer lead times, good foresight is required throughout the supply chain. In the worst problem areas, prices have risen sharply, but otherwise prices are still relatively stable. The costs of ”support purchases” have of course been negatively affected in order to keep production running in the event of supply disruptions.
What does the forecast for the component situation look like?
The situation is unlikely to change in the coming months. What happens next will largely depend on where the global economy is heading. In the long term, however, increased electrification will generally keep demand at a relatively high level.
What can be done to deal with the problem?
I believe that one should not change one's purchasing behavior as this affects the professionally structured supply of components based on delivery plans that have been formed over a long period of time. There is then a risk that errors regarding demand will be built in while the manual workload increases – often completely unnecessarily. However, as a purchaser, one should have good foresight (at least 52 weeks) and a close dialogue with one's suppliers.
