Between the incredible consumption of passive products by the boom in IoT, double ordering for safety buffering, and the time and lack of motivation for manufacturers to increase their production, the shortage has no end in sight. It is the perfect storm. Everything we use is slowly being connected. Even the latest toothbrushes connect to the internet now so you can see how much pressure you are applying and how long you are brushing. What is next!!! This boom will continue and manufacturers need to respond. But from what this article states, they are not rushing to fix the shortage. These products have low margins and are old technology. The manufacturers have little motivation to make large capital outlays to increase production. For now, they may just enjoy the ability to reap higher margins on their products. And in the meantime, users will continue to double order in an attempt to hedge their supply creating an even bigger problem.
Robb Hammond is the President of AERI and the former chair of the Aerospace Industry’s Counterfeit Electronic Components Mitigation Standard for independent distributors, AS6081, which has become one of the industry’s most respected documents, as well as being adopted by the Department of Defense. Robb is one of the foremost thought leaders in the industry on counterfeit detection and speaks regularly at conferences around the globe.