Keeping our customers products in production.

There’s been plenty of news recently on how micro-chip shortages are impacting the profits of big manufacturers.

Jaguar Land Rover state they have lost £9m in the last three months alone.

This chip shortage is being, at least in part, generated by the demand for electric cars, high powered PC’s and other chip-hungry products. It’s a problem that we, as contract electronics manufacturers are aware of, but right now are managing through our supply chain team and customers. This is down to our ability to act quickly and flexibly.

Thanks to strong relationships with suppliers and customers, smaller specialist CEM’s like us can be flexible when customers need to redesign products and parts, reacting quickly to the changes in the supply of parts.

Our customers operate in niche markets, so are looking for bespoke build and component solutions. As they use a contract electronics manufacturer rather than manufacturing in-house, they can be flexible with when they choose to order. Big in-house manufacturers like Jaguar must continue to pay overheads, even if no components mean they can’t manufacture.

It seems a common view throughout the industry that the shortages we are seeing in the supply chain will continue over the next 1 -2 years. Supply will eventually catch up with demand through the opening of channels cut off by COVID, Brexit and the uncertainties in global politics.

So how can you keep your product in production? Start early − keep on top of your yearly requirements and review often. Talk to your CEM regularly (they should be keeping you in the picture) to assess and proactively avoid supply delays. Pick a CEM that can be flexible. Look for one who demonstrates this flexibility with ideas and solutions that support you and keeps your product in production.

To discuss your requirements, speak to our expert team today on 01903 524600 or email us at sales@fermionx.com. Or head over to our website to find out more about what we can offer you www.fermionx.com