Component Buying - Blow Out The Match Before It Burns Down The Forest
Posted by Jenny Miller on Wed, Aug 25, 2010 @ 06:06 PM
Many of you remember all too well what the industry was like around Y2K. The
impact it had on so many customers was tremendous:
- Having to pay over inflated prices just to keep their lines from shutting down
- Placing orders for items that had 4-6 month or longer lead times
- How do you plan so far in advance without over exposing yourself?
With the instability of pricing and lead times, cost and deliveries can be increased at a moment’s notice. The good news is that we’re seeing industry wide that manufacturing is definitely on the rise. This is a good indicator for our rebounding economy.
According to, “US electronics orders outpace Dow Jones” by Richard Wilson on Wednesday 14 July 2010:
“Electronic component orders in the US reached their highest level in two years
in June, according to the monthly order index compiled by the Electronic
Components Association (ECA).
The numbers represent the continuing turnaround in the electronics market which
has been on a growth curve since last summer.
Interestingly, the ordering trend deviated from its typical tracking of the Dow Jones stock market index.
‘I believe we are seeing a combination of increasing lead times for electronic components and doubling of orders due to a fear of shortages,’ said Bob Willis,
ECA president.
‘Time will tell whether this is a true indicator of a continued electronics comeback or a miscalculation of future demand’ said Willis.”
[The Electronic Components Association (ECA) represents the electronic components
industry and supply chain in the US]
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Knowing about the escalation of electronic manufacturing allows for companies to plan accordingly in order to avoid getting caught with production lines down or paying inflated grey market price. The solution:
Plan ahead.
Blow the match out now before it lights the forest on fire. Being sole sourced means that business as usual will only translate into relying on sources that can lack the desire to truly partner with you. Pricing and availability has a huge impact on your material costs.
Trinity Components can help you with your inventory management team as well as our technical abilities to offer you alternative manufactures instead of being sole sourced with brands that are becoming harder to obtain.
The best insurance in this market is to make sure your not sole sourced. Let us take your long lead time components and offer you an alternative.