04 Oct 2021 -

Component forecast: stabilising growth and lead times

Component lead times are levelling out at an average of 22 weeks, according to LevaData and the ECIA, while demand continues to fuel growth.

LevaData reports: “After experiencing a dramatic 2x to 3x increase in average semiconductor lead times over the last eight to 12 months, it appears that the situation may be shifting again. The delays are shortening or, in some cases, beginning to flatten at the least.”

The overall picture of a more stable growth profile is encouraging for supply chain participants working to manage in a very challenging environment, said Dale Ford, chief analyst for ECIA. “The quarterly ECST survey results, which remain the same as presented last month, present a similar picture looking through the end of 2021.

“The more modest growth picture for the remainder of 2021 should offer some relief to suppliers and supply chain managers as they have been challenged by demand that has outstripped supply in many areas and resulted in inventory shortages and significantly extended lead times.”

The ECIA reports its electronic component sales-trend (ECST) index remains above 100, the line of demarcation between growth and contraction. The average growth expectations for components ranged between 120.0 and 127.0 between September and the October.

“The recent stable, yet positive, expectations measured by the index is a pleasant surprise given the growing concerns and uncertainty related to the economy, emergence of inflationary pressure, raw material supplies, the resurgence of COVID-19 with potential shutdowns, national and geopolitical instability, and increasing supply chain disruptions and lead times,” said Ford.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics here

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