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Shortage of components leads to massive delivery difficulties

Framework order versus shortage of components

The current supply situation for ceramic capacitors (MLCCs), cables/blank strands, displays and power supplies has intensified and there is no sign of the markets easing.

This allocation has also had a massive impact on our division. As a result, we are struggling with increasing delivery times and prices - but we never lose sight of our partners.

There is a high global demand for the scarce components. The components are distributed to the continental markets according to defined distribution keys. On average, approximately 10% of all components are intended for the European market. The main demand drivers in Europe are the automotive and telecommunications industries.

As a result, it is still not foreseeable when the overall situation in the procurement market for electronic components will improve. Almost every day we receive reports from suppliers and manufacturers that include extremely long delivery times.

At present, this fluctuates from >50 weeks to allocation. This misery is compounded by dramatic price increases due to the enormous demand.

We will keep you up to date, but please do not expect any improvement in our ability to deliver within the next few months. Efforts by the semiconductor industry to significantly increase production will not take effect before 2019/2020. The procurement market for raw materials will also pick up significantly on the high demand for silicon, ceramic substrates and aluminum, for example.

ehb electronics gmbh expects prices to rise and delivery times to remain very long.

In summary, we urgently recommend that framework agreements and forecasts be reviewed again in order to adjust to the given situation.

Our recommendation: The plans should already cover the entire year 2019.

Framework orders are the only means of countering the situation. This is the only way to ensure that production requirements are met on time and at a stable price. 

We are aware that we demand a lot from our customers and partners, but here we see ourselves as responsible for cushioning the situation on the components market. With more than 40 years of experience in this market, you have a partner at your side who can meet this challenge.

The ehb sales team is at your disposal for further questions at any time.

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