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IABM’s second electronic components supply survey paints a dreary picture for media technology suppliers. The report underscores lengthening lead times and a significant rise in component prices since its last survey in April 2021.
This most recent survey finds that there are very few signs the situation will improve in the short-to-medium term and that “97% of technology vendors reported being significantly affected by component shortages with 63% saying they are severely affected (up from 40% in the April 2021 survey), 34% moderately affected and just 3% mildly affected (15% April 2021).”
The report also found that lead times for components have increased by an average of 74% and component costs by 44%, resulting in a 26% impact on final product costs.
“Perhaps most worryingly, 86% of respondents reported facing moderate or severe impact on their financial sustainability if the issues persist for another 12 months,” the IABM stated in a release.
When asked how companies were mitigating the effects of the shortages on their operations, 65% replied that they were stockpiling components and 63% said they were redesigning products.
“Perhaps most worryingly, 86% of respondents reported facing moderate or severe impact on their financial sustainability if the issues persist for another 12 months.”
“With no early prospect of the component shortage problem being resolved, many media tech companies have responded by redesigning their products to mitigate issues with sourcing specific components, and/or stockpiling components where possible to keep their production lines flowing in the face of dramatically increased lead times,” said Peter White, CEO, IABM. “There is also evidence of component price increases, which will either need to be absorbed by media tech suppliers or will feed through into increased end-product prices.”
White added that the BaM Stock Exchange™ the IABM launched last year enables IABM members worldwide to list their excess stock using internationally accepted parts codes and descriptions. “IABM member companies who are experiencing shortages can search the BaM Stock Exchange listings to quickly discover if parts they require are available,” he said.
