Update on Lead Times and Pricing (Follow-up)

We would like to take this opportunity to provide an update on the current landscape concerning lead times and pricing within the Connectivity & Industrial Network Solutions sector. Since our previous article in February 2021 on this matter, the situation has remained complex, driven by the ongoing impacts of the COVID-19 pandemic, material shortages, and limited production capacities. Below is a concise overview of the current state of affairs:

COVID-19 Impact

The connectivity sector continues to feel the effects of COVID-19, particularly in regions where the Omicron variant first emerged and vaccination rates are comparatively low. Factory operations worldwide have been hampered by high infection rates, leading to reduced production capacity as a result of increased absenteeism. This has inevitably affected delivery schedules across the board. In an effort to mitigate these disruptions, many manufacturers are utilizing available capacity at various global facilities. However, not all products can be easily transferred to other sites. Consequently, limited capacity for certain product lines has forced manufacturers to allocate production. As such, new orders for these products can only be confirmed when a reliable delivery timeline can be assured. Unfortunately, previously confirmed orders may also experience delays unless production capacity can be restored and both material availability and scheduling are stabilized.

Component Shortages

In addition to these challenges, the global shortage of essential electronic components continues to disrupt production processes. Procurement teams are working diligently to prioritize orders and seek viable alternatives, yet lead times remain extended beyond the usual ranges. In some instances, confirmed orders may be postponed due to delayed or canceled deliveries of critical components from suppliers.

Exploring Alternatives

This ongoing situation has also led to inflationary pressures on material, labor, and logistics costs. We, alongside our partners, are striving to minimize these impacts, though some price adjustments are, regrettably, unavoidable. If you have any questions regarding specific products, please do not hesitate to reach out. Together, we can explore potential alternatives and work towards the most efficient solutions.