Supplyframe Commodity IQ: Most Electronics Supply Chain Challenges Are Getting Worse | news

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PASADENA, Calif.–(BUSINESS WIRE)–Feb. April 2022–

New data from supply framework paints a bleak picture of current and expected conditions in the electronics supply chain, where resource scarcity and cost inflation are affecting most inputs across all categories. Ongoing category challenges earlier this quarter suggest that many commodities will only see relief through the end of 2022 and into 2023.

These include shortages of resin raw materials and additives, rising fuel and metals costs, and challenges related to affordability and availability of labor and freight capacity.

“Geopolitical uncertainty and the wide-ranging impact of the Russian invasion of Ukraine, ongoing global inflation and recurring COVID-19 outbreaks continue to wreak havoc and test the industry’s ailing supply chains,” said Steve Flagg, CEO and Founder of Supplyframe.

There is no relief in sight for the second quarter

The second quarter started with nearly half of all Supplyframe Commodity IQ dimensions deteriorating. And the number of price indicators in the red rose 16% sequentially.

The situation is not expected to improve during the quarter. Commodity IQ expects 85% of all price dimensions to increase and 83% of all delivery time dimensions to increase this quarter.

“Ongoing COVID-19 outbreaks in two-thirds of Chinese provinces and elsewhere in Asia are prompting government-mandated shutdowns and strict containment protocols – leading to further labor restrictions, straining supplies and introducing new supply chain disruptions,” said Richard Barnett, Chief Marketing Officer and SaaS Sales Director at Supplyframe.

Supply chain challenges will continue into 2023

The electronics supply chain can expect growing challenges in the coming year. By the first quarter of 2023, more than 70% of lead times are expected to increase. During this period, with very limited exceptions, prices of analog complex semiconductors (ASICs, MCUs, MPUs, PLDs), flash memory, non-ceramic capacitors, resistors and standard logic devices are forecast to increase. Most of the same devices will remain or exceed even with already increased delivery times.

One category that remains particularly persistent and hostile is the active components market. From analog power supplies to standard logic to ASICs and sensors, this space will be swimming in a sea of ​​red indicators for the next four quarters. This is happening as strong demand continues, production is stretched, lead times are longer, and rising prices are plaguing most devices.

Passive components are not as limited as active ones. However, like active components, passive resources also suffer from resource and labor shortages.

But new forms of intelligence can help with risk management

Powered by Supplyframe’s Design-to-Source Intelligence (DSI) solutions, Commodity IQ uses a unique combination of analytics and analysis to provide actionable information for practitioners in the electronics industry. It is underpinned by commodity sourcing experts at Supplyframe’s more than 350 DSI network partners managing more than $140 billion in direct material spend and by powerful analytics generated by more than 10 million sourcing professionals and electronics engineers . And to help companies improve their end-to-end supply chain risk mitigation and opportunity identification during these unsettling and complex times, Supplyframe announced new Commodity IQ Intelligence aspects this quarter.

Supplyframe has partnered with MetalMiner, whose MetalMiner Insights platform offers unique information on metal market prices. Commodity IQ now includes MetalMiner’s monthly prices, forward-looking analysis and price forecasts for essential and precious metals.

In addition, Supplyframe is introducing phased lead times by volume for the electronic component raw materials analyzed in Commodity IQ. Based on large scale offerings of thousands of Manufacturer Part Numbers (MPNs) across millions of data points, these lead time trends express the percentage of MPNs in each range of factory lead time offerings and are updated quarterly. As a further extension of its offering, Supplyframe now presents the design and demand indicators in Commodity IQ monthly with three-month forecasts.

“The electronics supply chain continues to face new and unprecedented challenges,” said Flagg. “But harnessing new forms of intelligence can help these companies better understand and manage risk, make their new product designs more resilient, and expand their capabilities.”

About Supplyframe

Supplyframe’s unmatched industry ecosystem and breakthrough Design-to-Source Intelligence (DSI) solutions are transforming the way people and businesses design, source, market and sell products across the global electronics value chain. Supplyframe’s DSI platform leverages billions of continuous signals on design intent, demand, supply and risk factors, making it the world’s most comprehensive source of information for the electronics industry. Over 10 million technology and supply chain professionals worldwide use our SaaS solutions, search engines and media properties to drive rapid innovation and optimize more than $140 billion in direct material spend annually. Supplyframe is headquartered in Pasadena, California with offices in Austin, Belgrade, Grenoble, Oxford, San Francisco, Shanghai and Shenzhen. To join the Supplyframe community, visit supplyframe.com and keep following us Twitter, Instagramand youtube.

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CONTACT: Kimberly Barnes

[email protected]

440-506-2177

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: HARDWARE ELECTRONICS DESIGN AUTOMATION SEMICONDUCTORS RETAIL DATA MANAGEMENT MANUFACTURING CONSUMER ELECTRONICS TECHNOLOGY SUPPLY CHAIN ​​MANAGEMENT TRANSPORTATION OTHER TECHNOLOGY OTHER MANUFACTURING SOFTWARE LOGISTICS/SUPPLY CHAIN ​​MANAGEMENT ENGINEERING

SOURCE: Supplyframe

Copyright Business Wire 2022.

PUB: 04/28/2022 09:00 / DISC: 04/28/2022 09:02

http://www.businesswire.com/news/home/20220428005005/en

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