{"id":2327,"date":"2020-04-28T20:36:18","date_gmt":"2020-04-28T19:36:18","guid":{"rendered":"http:\/\/sfresources.wpengine.com\/?p=2327"},"modified":"2024-03-04T05:44:00","modified_gmt":"2024-03-04T05:44:00","slug":"the-survivors-guide-to-shortage-season","status":"publish","type":"post","link":"https:\/\/intelligence.supplyframe.com\/es\/the-survivors-guide-to-shortage-season\/","title":{"rendered":"The Survivor\u2019s Guide to Shortage Season"},"content":{"rendered":"

The connected world is growing at an exponential rate. Industries that have historically never had a need for electronic components are now fueling unparalleled demand. As a result, an ongoing shortage has gripped the industry as component manufacturers struggle to meet requirements.<\/p>\n\n\n\n

Lead times are soaring, manufacturers are double or triple-ordering components in a desperate attempt to get ahead, and all the while the problem is getting worse. Surviving this shortage season requires a deeper understanding of the problem, a measured approach, and the proper tools to succeed.<\/p>\n\n\n\n

The State of The Shortage: Underlying Causes and Ongoing Concerns<\/h3>\n\n\n\n

Shortages like this one are nothing new, but in this case a perfect storm has created a massive problem across multiple industries. The last major shortage was all the way back in 2001. Components that fall into passive, electromechanical, and interconnect categories were in short supply throughout 2018, and the problem persists into the new year.<\/p>\n\n\n\n

Multi-layer ceramic capacitors (MLCCs) were among the most severe of the shortages<\/a>, according to Morgan Stanley and Stifel. We\u2019re talking about components that, in some cases, cost less than a penny. While they are small in stature and price, these shortages are threatening global supply chains. Why is that?<\/p>\n\n\n\n

The answer is simple: these components are in higher demand now than \nthey\u2019ve ever been. Constantly evolving products are using exponentially \nmore components with each generation.<\/p>\n\n\n\n

Couple this with the rise of IoT and the electrification of the automobile, and demand is coming from more directions than ever before.<\/p>\n\n\n\n

\n

\u201cWe see high demand pulling more units into the \nmarketplace; we also have a backdrop of products becoming more \ntechnical. It would be a struggle to find a vertical market that isn\u2019t \ngrowing. There\u2019s automotive, data, industrial, IoT, medical, and \nanything \u2018smart\u2019.\u201d<\/p>\n\n\n\n

\u2013 Andy King, President of Arrow Electronics\u2019 global component business.<\/p>\n<\/blockquote>\n\n\n\n

With two titans like the automotive and smartphone industries fueling demand for components, it\u2019s not hard to imagine how that would put a strain on suppliers. While modern automobiles contain thousands of MLCCs per vehicle, predictions indicate that a single car will have up to $6,000 worth of electronics in it by 2022<\/a>. To survive and thrive into the future, we need to pinpoint long-term solutions.<\/p>\n\n\n\n

A Long-term and Sustainable Approach<\/h3>\n\n\n\n
\"surviving<\/figure>\n\n\n\n

Ongoing trends ensure that this issue isn\u2019t something that will go away on its own. Automobiles are moving away from their roots and embracing modern software-driven solutions like driver assistance, safety systems, displays, and sensors. All of these things raise the requirement for additional components.<\/p>\n\n\n\n

The IoT industry has also come out of nowhere and introduced millions of connected devices into the global market. Current predictions point to as many as 30 billion IoT devices by 2020<\/a>.<\/p>\n\n\n\n

As lead times continue to stretch into the future, many manufacturers\n resort to double or triple-ordering components in an effort to stock \nup. This only exacerbates the problem and fuels the ongoing shortages.<\/p>\n\n\n\n

With analysts predicting that the shortage will last into the first quarter of 2020, it\u2019s time to start thinking about long-term solutions:<\/p>\n\n\n\n