Quarter 2 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.