Quarter 2 2021 Burton Industries Newsletter

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Quarter 2 Electronic Component Market Conditions Update

We have all read and heard about the supply chain issues over the past few months. Now, the reality is setting in with shortages and allocations. These shortages did not start with the pandemic but have been coming for some time. And these shortages are not going to end any time soon. It will take billions of dollars of investment in infrastructure to expand production. The root cause changes with every article you read, the podcast you listen to, or the daily newscast. The concepts of legacy supply chain principles are no longer relevant. Lean inventory, Just-in-time Inventory Management, and Kanbans are becoming obsolete in many industries.

No matter the blame, we look forward to the future and produce solutions. Here at Burton Industries, we lose sleep over our customer’s success and future growth. We are pivoting quickly from legacy supply chain principles to resilient supply chain practices. Let us guide you through this strained time. We will keep you moving forward and put plans in place for future projects.

Attached is a summary of component lead times and pricing trends referenced from the “Futures Market Conditions Report” for Quarter 2- 2021.

-Discretes: Pricing and lead times increasing across the board.

-Surface Mount General Capacitors (ceramic):  Overall, pricing steady with lead times of 18-48 weeks

-Passives: Mix of increasing pricing and lead times with many moving into the red category.

               -Trimmers & Pots: increased pricing and lead times 10-12 weeks

-Electrolytic: Increasing lead times with a mix of increased pricing. Lead times 14-32 weeks

-Capacitors (film): Mix of stable pricing with stable lead times of 10-36 weeks

-Capacitors (tantalum): Mix of stable pricing with increased lead times  4-46 weeks

-Capacitors (polymer tantalum): Mix of stable pricing with mix of lead times 20-30 weeks

-Filters: Mix of stable pricing and increased lead times 20- 40 weeks

-Inductors: Mix of stable pricing and increased lead times 12-30 weeks

-Fixed Resistors: Increased pricing and increased lead times 30-52+ weeks

-Resistor Networks: Increased pricing and increased lead times 15-40 weeks

-Batteries:  Stable pricing and stable lead times 8-38 weeks

-Electromechanical:

-Switches: Mix of stable pricing with increased lead times 10-18 weeks

-Fans: Stable pricing with mix of increased lead times 12-24 weeks

-Connectivity:

               -Wi-Fi modules: Increase pricing and increased lead times 24-30 weeks

               -Bluetooth modules: Mix of stable pricing with increased lead times 16-30 weeks

High End:

               -Microchip: Lead time and pricing increases for MCU (8 bit & 32 bit), PHY/Ethernet, USB, and 32 bit MPU 30-55 weeks

               -NXP: Pricing increase for 8 bit MCU, Automotive, 32 bit MPU, and Network Processors. Increase in lead times for all above including 32 bit MCU. Automotive allocation and 26-52 weeks on the rest

               -Renesas: Stable lead times and pricing Automotive, increase of lead times and pricing on 8 bit MCU, increasing lead times with steady pricing for 32 bit MCU, and steady lead times and increased pricing for 32 bit MPU. Average lead times 30 weeks

               -ST: Increased pricing and lead times for 32 bit MCU and allocation for 8 bit MCU, 32 bit MCU, and Automotive.

Our supply chain team is reviewing contraints reports daily to ensure fast action as conditions change. When new contraints are identified, purchasing, program management and engineering review options for alternate suppliers and/or substitutes. Watch our blog for further updates on trends and the tools we are using to address availability issues and pricing increases.

Way to go Sheri! Sheri has recently been promoted to Shipping Lead. Welcome back to the area and thank you for joining our team!

Join us in congratulating Shannon Ovaska on his promotion to Buyer in our Purchasing Department! Shannon is ready to take on the challenging world of component restraints–thank you Shannon!

#burtonindustries #pcbusa #contractmanufacturing #ems

Congratulations Ashley on your Promotion!

#burtonindustries #pcbusa #ems #contractmanufacturer

Happy Retirement Mary!

Burton Industries EMS Product Development & Engineering Services

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Looking for a career in the Electronics Manufacturing Industry?

The team at Burton Industries believes that making investments in their equipment, technology, and above all, their people gives them the tools to deliver an outstanding product to their customers. With the development of the Learn 2 Earn program, Burton Industries is taking the initiative to fill the employment gap in the Electronics Manufacturing industry. The program goal is to take an entry-level employee and train them into the functions of a process engineer. This training program provides a distinct career path for employees, creates job enrichment, and a sense of pride in ownership for every product. The Learn 2 Earn program is helping harness the power of every associate in the quest to work smarter and embrace an internal culture of constant learning.

Who is Burton Industries?

Who is Burton Industries? The easy answer is we are a full-service Electronics Manufacturer of PCBs and high-level assemblies. However, that only scratches the surface. Who we are at our core is a team of over 70 dedicated people. We come from deep backgrounds of experience, education, and knowledge to ensure our customer’s success. Our team’s learning comes from universities, community colleges, technical schools, and our in-house education and training programs. In this graphic, we are highlighting the colleges and universities that we represent.

Maximizing Employee Potential

A key concept of Lean manufacturing philosophy is differentiating between value-added and non value-added activity. Within that category is the concept of necessary non value-added activity or activities that are necessary, but don’t add value to the products being built. Supervision is considered a necessary, non value-added activity. While management involvement in the production process has not disappeared at Burton Industries, its management team has questioned how much supervision is really necessary if employees are trained in the “why” behind their jobs and understand how they interrelate to the production process.

This philosophy has driven cross-training efforts that have created a more nimble, flexible workforce able to work in multiple production jobs as production demand dictates. This training focus has evolved over multiple years into a program known as Learn 2 Earn, that increases team members’ compensation as their skills proficiency increases. In some cases, team members are trained in skills applicable to multiple processes in individual work cells; in other cases they are trained to work as a cohesive team in a single work cell.

Read the full whitepaper here.