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We’re in a major component shortage. The electronics industry is currently experiencing the most extreme component scarcity in over a decade. Lead times on passive-components products have drastically increased as a result, with some suppliers quoting as far out 52 weeks +1. The shortage and its impact is so widespread that the Electronic Components Supply Network (ECSN) is urging electronics buyers to “review their outlook on lead times for components amid surging global demand and reports of allocation risks on certain products.” This is a long-term sourcing challenge that industry analysts see lasting beyond the new year. Many organizations have responded to the supply deficit by double- and triple-ordering components, but this has only aggravated the problem further. Suppliers are starting to allocate their inventory, resulting in massive lead times and increased prices. A shortage of this magnitude isn’t simply caused by increased demand. Industry experts see a number of large-scale changes that are contributing to a “perfect storm” of product scarcity.
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