New Supplyframe Commodity IQ Intelligence Indicates Severe Supply Constraints, Price Hikes and Lead Extensions Through 2022 and Through 2023 | News


PASADENA, Calif.–(BUSINESS WIRE)–February 8, 2022–

The latest data from power frame indicates seemingly insatiable demand for electronic components and semiconductors for 2022. Global manufacturers can expect severe supply constraints and inflationary cost pressure for many component categories through 2023, according to the report. New industrial intelligence also predicts extended lead times for electronic components, with 70% of all lead time dimensions set to increase.

“Last year, we saw unprecedented demand for electronics across all end-market segments, and our new data indicates voracious demand will continue into 2022, driven by consumer spending and infrastructure investment. consistent across a variety of markets,” said Steve Flagg, CEO and Founder of Sourcing Framework. “The 277% year-over-year increase in design activity uncovered by our Design-to-Source Intelligence (DSI) network is testament to this trend.”

But at the same time, the COVID-19 pandemic, capacity constraints and raw material shortages will continue to challenge the electronics value chain, as will labor shortages, manufacturing capacity and transportation disruptions throughout the first half of 2022, according to QI’s Commodity Report. For some components like analog components, complex semiconductors, frequency control devices and some resistors, the suffering will last even longer. Severe supply constraints and price increases for these categories look set to last through 2022 and into 2023.

“As Commodity IQ points out, the new year begins with persistent commodity challenges, some of which will extend into next year,” Flagg added. “However, cautious optimism exists for passive components in the second half of the year, particularly for standard connectors and ceramic capacitors, suggesting that the passive market will recover faster than its active counterpart. Prices and lead times of most passive products are expected to stabilize from the third quarter.”

Powered by Supplyframe’s CIO, Commodity IQ uses a unique combination of insights and analytics to deliver actionable insights to electronics industry practitioners. Commodity IQ is powered by raw material sourcing experts from over 350 Supplyframe DSI network partners who manage over $120 billion in direct materials spend and the powerful analytics generated by over 10 million supply professionals. procurement and electronics engineers.

Commodity IQ is available through an annual subscription and delivered in a continuously updated environment that includes critical product alerts. It presents four-quarter rolling forecasts for the crucial supply dimensions of market dynamics, prices and lead times. It provides digital information, suppliers, industry and selected experts for additional context. Commodity IQ also identifies design and demand trends, including technical design cycle patterns and forecasts as well as supply signals by product and sub-product. And in Q1 2022, it will be enhanced to include product delivery times based on hundreds of thousands of cited manufacturer SKUs.

About Supplyframe

Supplyframe’s unparalleled industrial ecosystem and pioneering Design-to-Source Intelligence (DSI) solutions are transforming the way people and businesses design, source, market and sell products across the global value chain of supply. ‘electronic. Leveraging billions of continuous signals of design intent, demand, supply, and risk factors, Supplyframe’s DSI platform is the world’s richest intelligence resource for the electronics industry. More than 10 million engineering and supply chain professionals worldwide use our SaaS solutions, search engines and multimedia properties to drive rapid innovation and optimize over $120 billion in annual spend directly in materials. Supplyframe is headquartered in Pasadena, CA, with offices in Austin, Belgrade, Grenoble, Oxford, San Francisco, Shanghai, and Shenzhen. To join the Supplyframe community, visit and follow us on Twitter, instagramand Youtube.

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SOURCE: Procurement Framework

Copyright BusinessWire 2022.

PUBLISHED: 08/02/2022 09:00/DISC: 08/02/2022 09:02

Copyright BusinessWire 2022.


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