13 Jul 2021 -
 General

Lead times at record highs, reports ISM

The lead time for production materials rose from 85 days in May to 88 days in June, which is the highest figure since ISM (Institute for Supply Management) began collecting data in 1987, according to their new figures.

Chair of the ISM, Tim Fiore, said in a press release that companies and suppliers continue to struggle to meet increasing levels of demand. “Record-long raw-material lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy.

“Worker absenteeism, short-term shutdowns due to parts shortages, and difficulties in filling open positions continue to be issues that limit manufacturing-growth potential,” said Fiore.

Extended lead times are particularly affecting electronic supplies, which includes semiconductors. One respondent to ISM’s June 2021 Manufacturing Report on Business said lead times for electronic components went from 16 weeks to more than 52 weeks.

The June Manufacturing PMI® registered 60.6 percent, a decrease of 0.6 percentage point from the May reading of 61.2 percent. This figure indicates expansion in the overall economy for the 13th month in a row after contraction in April 2020. 

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.

Either through the hundreds of manufacturers we purchase directly from, or the international network of component supply-partners offering full product traceability, Astute Safe-Supply, run by sourcing experts and offers a deeper insight into the global components markets.

With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.

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

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