Global electronic component shortage – the effects

Oct 25, 2018Company News

Global electronic component shortage – the effects

A global electronic component shortage is affecting every electronics manufacturer in the world, including MPE Electronics.

There are various factors causing the acute shortage of electronic components, in particular, surface mount capacitors, that can all be linked to a global surge in the use of technology and electronic devices requiring these components.

What the global electronic component shortage means for you

Such is the scale of the shortage that the delay in supplying new components is running at around 80 weeks, and growing. No matter what you hear, this is affecting printed circuit board (PCB) and product assembly. These processes can’t be carried out without vital components, such as surface mount capacitors. Unfortunately, this means unavoidable production delays for customers.

No contract electronics manufacturer or supplier of electrical components is exempt from the shortage and its effects. Even suppliers and manufacturers that have traditionally carried a large stock of these components, such MPE Electronics, are now being affected by the global shortage.

There is no way round this problem, for anyone. Suppliers of these electrical components are doing their best to increase production capacity and manage the situation, but at the moment lead times are constantly being extended and delivery dates put back. As a result, it is very difficult for any electronics manufacturer to give accurate PCB and product delivery dates to customers.

How MPE is responding to the global electronic component shortage

Given the current situation, clear and consistent communication between contract electronics manufacturers and their customers is critical. To this end, MPE Electronics has implemented a two-part acknowledgement system, comprising a target delivery date and a confirmed delivery date.

On receiving an order, we are sending a receipt of order acknowledgement that, along with information on part numbers and the delivery address, contains a target delivery date. We are doing all we can to meet this delivery schedule, but should the global shortage mean we cannot, we are sending a notification as soon as we know, informing the customer of the delay.

Only when we have received all the components required for an order are we sending a confirmation of delivery acknowledgement that includes a confirmed delivery date. This way we can be absolutely clear with our customers about when they are going to receive their orders.

What you can do to receive your order as soon as possible

Electronics manufacturers the world over are working hard to meet demand and fulfil orders as quickly as possible. MPE Electronics is no exception. We have a very robust relationship with our suppliers, who are committed to helping us with supply issues.

However, the component shortage is global and is affecting everyone. At present, the best strategy you can adopt, as a customer, is to place orders as early as possible. This means that we can work on sourcing and securing the components needed for your order as soon as possible.

For more information on MPE contract electronics manufacturing services, contact us on 01825 764822 or enquiries@mpe-electronics.co.uk.