As I am sure you are aware, over the past year there has been serious logistics delays and disruptions in global supply chains, which have disrupted manufacturers across all sectors. The global component shortage has made it almost impossible for manufacturers to find the components they need on a timeline to meet their production demands. 

2022 looks to be another exceptionally challenging year. Lead times extend as material shortages are commonplace and demand still rises on manufacturers.

Impact On Products 

We know how difficult it is for customers to source some of the high-demand parts they need right now and, whilst our manufacturing is keeping up with demand, we will experience extended lead times due to some of the following:  

  • Cables – raw plastic material, PVC, PP and PE remain difficult to source with increased demands at production stage. Standard lead times for cable have increased to 20+ weeks
  • Connectors – there has been a gradual increase in prices for connector products as materials are in short supply. We expect to see this stabilising around mid-2022 as lead times decline to an average of 12-16 weeks
  • Displays – the supply chain will continue to suffer from increased prices and lead times in excess of 18 weeks, due to rising demand and supply shortages on driver ICs, microcontrollers and TFT glass throughout 2022

The Domino Effect 

We are still seeing pandemic impacts on global operations causing supply chain disruption, where cities and seaports in China have been closed due to COVID quarantine measures. In addition, the effects of energy cuts at Far Eastern factories have further delayed production of materials and components used in electronics manufacturing.

There are transportation and logistics bottlenecks, delays at ports, and unpredictability around ground freight that will impact our industry through most of 2022. Furthermore, some shipment containers are having to be used as storage space rather than being available for transportation.

What We Are Doing To Help 

GTK are resilient to these challenges and we remain committed to keeping your production line running. We are constantly mitigating risks by sourcing essential materials and identifying alternative solutions to components with longer lead times. In addition:

  • We can stabilise pricing on cable assembly requirements, including material and delivery costs, by extending stock coverage on critical components
  • Our engineering and purchasing teams are here to support your product designs and work with you to provide component alternatives and BOM cost-down initiatives
  • GTK have the capacity to hold stock of longer lead time Displays and custom Connector solutions

To find out more about how GTK can help you minimise disruption in the current climate, please contact us

 

Gavin Darling, Sales & Marketing Director