Material Constraints Update: April 2019

While material constraints are likely to occur through the rest of 2019, overall trends are are positive. Lead-times are decreasing in most component types and Burton Industries is seeing less allocation and backorders. Here is what our supply chain team is seeing by commodity:brochurepg1c

  • Analog – (Sensors, Power, Regulators ) Stable to Decreasing – 10-12 weeks.
  • Batteries – Stable – 8-12 weeks.
  • Connectivity (WIFI, Bluetooth, Cellular) Microchip lead-times increase to 18-20 weeks, many manufacturers Stable 12-16 weeks.
  • Discretes (MOSFETS, Varistors, ESD, Didoes, Rectifiers)  Overall decreasing, however some lead-times are still high at 12-26 weeks.  Very positive signs here.
  • Electromechanical – (Power Supplies, Relays) -Stable to Decreasing 10-14 weeks.
  • 8 bit MCU, 32 bit MCU, LCD’s , FBGA– Stable to Decreasing.
  • Interconnect –  Stable with the exception of automotive connectors which are extended 26-40 weeks.
  • LEDs – Stable 8-10 weeks.
  • Memory – Stable 4-12 weeks.
  • Passives
    • Capacitors
      • Electrolytic – Still at 14-18 weeks with some pricing increases (NIC, Nichicon).  Panasonic is seeing Decreasing lead-times at 14-18 weeks with stable pricing.
      • Film Capacitors – Stable- Lead-times 12-16 weeks.
      • Tantalum Capacitors – Decreasing to 11-14 weeks, pricing is stabilizing.
      • Polymer Tantalum Capacitors – Stable 12-16 weeks.
    • Resistors
      • Fixed – Decreasing- Lead-times still high at 16-30 weeks.  Rohm is in allocation and selective pricing adjustments per market are still being made.
      • SMT General (Less than 1UF) Decreasing – Lead-times still range 16-30 weeks.

 

 

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Addressing Materials Constraints

_FBP5218-2The team at Burton Industries recognizes a constrained market requires that we work as closely as possible with our customers and suppliers to keep products on schedule. We are tracking distribution partner performance. Those who are living up to commitments the majority of the time and being proactive in communicating impending issues are seeing the bulk of our spend.

We have a number of supply chain partners willing to carry bonded inventory for us and live up to their commitments. Bonded inventory gives customers maximum flexibility with minimum liability, because the majority of parts are in high demand and easy to restock should a forecast change. Where possible we are moving customers to these sources of bonded inventory, setting demand based on a 12-month forecast.

We are working to get all our volume production customers to give 26+ weeks of commitments based on component lead-times. We modify that expectation for customers with legacy products that are built on an as needed or a few times a year basis.

Here are a few tips to further mitigate component availability issues:

  • Put our design team in the design cycle from a Bill of Materials (BOM) standpoint as early as possible. We offer a free BOM scrub service to existing customers to help them assess risk in critical to design components.
  • Avoid single source parts or those with limited sources.
  • If a part has been labelled not recommended for new product use, it should also be avoided as its obsolescence risk is high.

Burton Industries’ Design Engineering team can help with all your component engineering related needs. Our pool of specialists can help you manage the increasingly complex development environments and offer full life cycle management with strong focus on cost savings and defect prevention. Capabilities include:

  • Product/PCB Design
  • PWB layout
  • Design for manufacturability (DFM)
  • Component selection assistance (alternative sourcing)
  • Development of manufacturing aids (fixtures, stencils, etc.)
  • RoHS conversion assistance
  • Product Lifecycle Management (PLM) recommendations