"The picture is bleak.”
That’s the assessment from IABM, which published results of its electronic components supply survey of global media technology companies.
The association said lead times are lengthening and component prices are rising significantly since its last survey nine months ago.
“Respondents also sounded the alarm on their financial positions if component supply problems persist for a further 12 months; there are very few signs that the situation will improve in the short-to-medium term,” it wrote.
IABM is a trade association for broadcast and media technology. [See a list of IABM member companies.]
It said 97% of technology vendors reported being significantly affected by component shortages, with 63% saying they are severely affected, up from 40% last April.
“The survey finds that lead times for components have increased by an average of 74% and component costs by 44%, resulting in a 26% impact on final product costs.”
The association expressed concern that 86% of respondents “reported facing moderate or severe impact on their financial sustainability if the issues persist for another 12 months.”
CEO Peter White said in the announcement, “With no early prospect of the component shortage problem being resolved, many media tech companies have responded by redesigning their products to mitigate issues with sourcing specific components, and/or stockpiling components where possible to keep their production lines flowing in the face of dramatically increased lead times.”
He also cited evidence of component price increases “which will either need to be absorbed by media tech suppliers or will feed through into increased end-product prices.”
The association recently launched a service that allows companies to list their excess stock; members experiencing shortages can use it to find supplies. “I have been surprised that not many companies have taken advantage of the BaM Stock Exchange so far; perhaps this is the moment for them to do so,” White said in the release.
