How the global component shortage is affecting ExiFlow

The global shortage of electronic components is impacting every electronics manufacturer across the globe, causing unavoidable production delays for many of their customers.

It’s an issue which is set to continue into next year and it may well take until the end of 2019 for component manufacturers to catch up with demand.

As one of those customers, we thought we’d take a look further into what the implications of the global component shortage are for ExiFlow.

Causes of the electronic component shortage

The principal cause of the electronic component shortage is a global surge in the use of technology and electronic devices that require these components at both consumer and industry level.

The rapid modernisation and urbanisation of major emerging markets, such as India and China, is also playing a key role.

Additionally, the use of electronic devices by manufacturers across the industry spectrum, in particular in sectors such as defence, automotive and aerospace, continues to rise at an incredible rate in response to advances in technology.

A change in component production activity in the past decade is another important factor.

ExiFlow’s Managing Director, David Ward, had the following thoughts: “On circuit boards with hundreds of components, shortages of one or two tiny devices can disrupt supply chains very quickly.

“The electronics industry is facing many challenges at present, particularly the shortage of specific small capacitors and resistors.
“The shortage appears to be driven by global demand, particularly from the automotive industry.
“For us, a small electronics manufacturer, it means we face many challenges in continuing to meet our customers’ supply needs.
“Hence, lead times extend, prices fluctuate, the crystal ball has to look further and further into the future. However, we have been working closely with our suppliers and are confident that any disruption will be minimised as much as possible.”

The solution for now

Component manufacturers are responding to the global shortage by increasing production capacity.

However, component distributors are constantly putting back delivery dates and this makes it very difficult to give manufacturers accurate delivery dates to pass on to customers. No one is exempt from the delays.

Given the difficult conditions, we are pleased to say that, thanks to clear and consistent communication from our suppliers, such as MPE Electronics – and a two-part order acknowledgement system, comprising a target delivery date and a confirmed delivery date – we can be absolutely clear with our customers about when they are going to receive their orders.

Exi Flow Measurement specialises in products for the gas and liquid measurement industry – manufacturing, researching and developing with a focus on continuous project development and enhancement. To speak to us about how we can help you, call +44 (0)1243 554920 or contact us here.