Lead Times and Supply: Electronics Manufacturing Update 2023
Summary
The fallout from the COVID-19 pandemic started a domino reaction across the electronics supply chain, made worse for UK manufacturers by the lingering impact of Brexit and the logistical and economic difficulties caused by the war in Ukraine. The demand for next-generation technology is increasing across a range of sectors, with Precedence Research’s report on consumer electronics predicting that the market would grow at a compound annual growth rate (CAGR) of 5.1% between 2022 and 2030. For example, despite disruption in ruthenium and alumina supply chains following the conflict in Eastern Europe, lead times for thick film chip resistors have declined steadily between mid-2022 and April 2023 due to lower consumer electronics demand from China. Still, the availability of high-power thick film parts remains tight due to increased demand from the electric vehicle (EV), infrastructure and defence sectors. By staying organised, evaluating supply channels, reimagining electronics designs and seeking practical alternatives to more high-demand materials and components, we can continue producing innovative new products whilst managing expectations and keeping costs down where possible.