Electronics

Customer confidence is high | 2022 forecast, latest article news

MD of G English Electronics, David English

David English, MD of G English Electronics, remains bright about customer trust and innovation and investigates the causes of current supply chain problems.

The pandemic has shocked the global supply chain and affected electronics manufacturing in the United Kingdom. Gelec recognizes that the turmoil is likely to continue until 2022 and its impact may be felt until 2023. Historically, the industry has experienced shortages and price volatility, but the current situation is unprecedented.

With a few exceptions, component prices are expected to remain at current levels for some time. Price inflation was caused by rising demand, material costs and transportation problems. For many items, capacity simply cannot meet demand and the necessary improvements are not made overnight.

Pre-supply of most electronic components was not a problem. However, pandemics pose significant challenges to the supply chain, putting heavy pressure on the supply chain and exposing vulnerabilities. Providing normal working practices and capabilities will resume in the coming weeks, revealing a path to recovery.

It is unlikely that sea shipping capacity and container availability will improve for weeks. If the port is working properly, the backlog will slowly decrease. Staff shortages at the port and wages / working conditions for key workers, including HGV drivers, need to be addressed.

Air freight capacity from Asia has declined significantly. When China reopens, capacity will return and costs will be reduced, but this is months away.

China’s Zero Covid Strategy means that by waiting for quarantine delays and ship docking, the situation can be expanded and further blockades possible.

Note that inflation and interest rates need to be considered, but the momentum is promising. There are so many opportunities, the market is expected to grow, and customer trust is high. Many developments and new products are planned for the 2022 release.

www.gelec.co.uk

https://electronics-sourcing.com/2021/12/08/customer-confidence-is-high/ Customer confidence is high | 2022 forecast, latest article news

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