Tight conditions in the global supply chains for electronics parts and components will continue well into 2023 as buyers experience “grim” challenges such as low supplies and high costs, according to the electronics industry analyst firm Supplyframe.
The California-based company said that continuing challenges at the beginning of this quarter suggest that there will only be pockets of relief through the remainder of 2022 and into 2023 for many commodities. In the meantime, the impacts will include shortages of resin feedstocks and additives, increasing costs for fuels and metals, and challenges related to the affordability and availability of labor and freight capacity.
“Geopolitical uncertainty and wide-ranging impacts from the Russian invasion of Ukraine, persistent global inflation, and recurring Covid-19 outbreaks continue to wreak havoc and test beleaguered industry supply chains,” Supplyframe CEO and founder Steve Flagg said in a release.
The firm’s Commodity IQ platform predicts that 85% of pricing dimensions will increase and 83% of lead time dimensions will extend as this quarter progresses. The same forecast extends into next year, as prices are likely to rise and more than 70% of lead times will increase through the first quarter of 2023, affecting items such as analog, complex semiconductor (ASICs, MCUs, MPUs, PLDs), flash memory, non-ceramic capacitor, resistor, and standard logic devices.
“Sustained Covid-19 eruptions in two-thirds of Chinese provinces and elsewhere in Asia are prompting government-mandated shutdowns and strict containment protocols — creating further labor limitations, straining supply, and introducing new supply chain disruptions,” Richard Barnett, chief marketing officer and SaaS sales leader at Supplyframe, said in a release.