Trends in Supply Chain Dynamics

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Editor’s note: CalcuQuote CEO Chintan Sutaria used his presentation at the EMS Leadership Summit to share market insights that could be concluded from usage data within the CalcuQuote environment. This article, authored by David Sharp, vice president of products, summarizes and updates the information shared at the summit.

The electronics industry experienced significant growth in size, complexity, and sophistication in the last decade. This growth was driven in part by:

1. Globalization: The electronics supply chain became increasingly globalized, with companies sourcing components and parts from all over the world. This led to greater efficiency and ability to source more parts, but also increased the risk of supply chain disruptions.
2. Shorter product life cycles: The demand for new and innovative products reduced product life cycles. This created a need for faster production and supply chain processes to keep up with the changing market demands.
3. Increased complexity: The industry and products became more complex. Companies had to innovate faster and adjust their systems and processes to keep pace with the rapid changes in products and competition.
4. Focus on sustainability: More companies focused on sustainability, and sought to reduce their environmental impact and improve the ethical and social aspects of their operations. This includes efforts to reduce waste, improve energy efficiency, and ensure responsible sourcing of materials.

These trends will continue to influence demand within the electronics supply chain for years and are partially responsible for recent boom/bust cycles. Unfortunately, while recovering from the latest cycle, the pandemic, factory closures, and other challenges led to pent up demand, which drove component availability to an all-time low. 

To read this entire article, which appeared in the April 2023 issue of SMT007 Magazine, click here.