Does it pay off to procure electronics only in Europe?
With the ongoing problems in Chinese ports or in the Suez Canal in spring 2021, it is clear: supplier selection and its logistics alternatives are more central than ever. Even a stabilising situation after the Corona pandemic will not change this - distortions and market fluctuations will remain. European buyers are therefore increasingly looking to procure through a regional supply chain. But how sustainable is that? While the focus is currently particularly on the issue of security of supply, sooner or later it will shift back in the direction of true costs.
Consequently, it is not about Asia or Europe, but about Asia and Europe.
This creates customer proximity on two different continents and also increases flexibility as well as security along the supply chain.
Electronics production affected by delayed deliveries
Why do we think that - regardless of transport bottlenecks - the already tense situation in the electronics sector could worsen? In our procurement process, we are seeing massive increases in delivery times. Not surprisingly, there is also considerable price pressure. This affects the following article groups:
Plastics for coil formers
Electronic components for SMD as well as THT assembly
Ferrite of all types for sensors and actuators
Signs are thus accumulating on several fronts that we are heading for a worse situation than in 2018, creating the risk of supply gaps. Plastic suppliers are already indicating the gaps as force majeure, and electronics components currently have delivery times of up to 52 weeks.