busy yet? Are your wishes
for a recovering economy finally coming true?
We’ve been busy preparing for the upswing in volume we see
coming on the horizon. If
the first quarter of 2006 is any indication, this will be our biggest
We know that when we get busy it means our customers are busy. It’s good to see our industry thriving in this stronger economy.
The downside of this increased economic activity?
lead-times are getting longer.
trend that started several years ago has gotten worse recently with the
increase in activity—everyone’s getting busy.
Not only have we seen some lead-times pushed out beyond sight but
prices have increased as much as 50% on some components.
We’ve seen 16-week lead-times pushed out to a horrendous 24
weeks! Why is this
suppliers are saying, “Our
stocks are low and we can’t produce parts fast enough. That’s why
lead-times are long and prices are high.”
Others claim, “It’s
driven by RoHS. Everyone wants lead-free parts.”
that may be true, consider this: When
the economy initially crashed after 2001, some of the larger contract
manufacturers cancelled their parts orders, leaving component
manufacturers holding the bag. As a result factories were closed down,
equipment was sold off for pennies on the dollar and many people lost
their jobs. Perhaps
component manufacturers are really trying to tell us: “We’re
taking it slow because last time we lost a lot of money. Maybe once
we’ve fully recovered our losses you’ll see lower prices and shorter
matter what the cause, the fact is that many parts right now are hard to
get and are more expensive. With
the RoHS compliance deadline of
fall into the trap of being so occupied by your day-to-day activities
that you can’t take the time to plan ahead.
Placing your orders early gives us the time to work with
lead-time issues to keep your production on track.
Several of our customers are getting ahead of the game by placing
annual purchase orders with scheduled delivery dates aligned to their
sales forecasts. There are three main advantages to this:
1). You get in the queue TODAY for parts.
2). You lock in TODAY’s component and assembly prices.
3). A higher quantity order means LOWER UNIT COST even though you
can schedule out shipments.
a simple solution!
Beat the rush on parts and price increases by placing annual orders now for all your assemblies!
For quotes contact Paul or Abdul at (206) 782-2325