AERI is seeing an unprecedented amount of activity related to the current electronic component shortage. In the 2018 shortage the focus was on specific product categories, but this time it is more widespread. Manufacturer after manufacturer are sounding the alarm bells warning that they will not be able to keep up with the demand. This letter from Microchip is a great example of the backlog the industry is facing.
What is AERI seeing:
Long time customers and new companies are contacting AERI desperate to get parts on order. Some organizations are planning ahead and buying buffer stock to solidify their inventory. This is a smart move, but unfortunately exacerbates the shortage since they are purchasing stock they don’t even need yet. The prices on some parts are going through the roof. As we go to source a typically $5 STMicroelectronics part we are being quoted $60. Our customers are obviously not happy about the huge price increases, but they are often buying the parts out of sheer desperation.
Shortages like this happen when there is unexpected demand. There has been much speculation about what type of a turnaround there would be as the COVID dilemma begins to come to an end. This incredible demand is real! The Manufacturing PMI is at 60.8% while many suppliers are struggling to get back up to full speed after COVID related slowdowns. This article gives very detailed information about the incredibly strong manufacturing market:
AERI can help you secure the stock you need to keep your manufacturing lines running. Please contact one of our search experts at firstname.lastname@example.org and we will tackle your most difficult supply issues.