Worldwide Electronic Component Shortage

[s2sam]

Good day Orion242,

With regards to your comment:

I keep thinking about this as we run into a snag, decide to stock up well above normal levels to avoid more short term issues only causing a cascading demand for a widget already in short supply. Lol, its every man for himself!

Yup, I have been "stocking" up for a while now... but I am running out of space ... The problem I am finding is that for each item I buy extra, I find that there is yet another part that is needed that is also in short or no supply... so a never ending circle. Adding to this is that some tech is constantly evolving and so the "extra" parts may not be the best choice for new designs that could benefit from the latest and greatest. So there is a risk that the extra parts become dead inventory.

As for JIT processes... yup... one wheel halts and the entire engine is stopped. JIT does minimize the upfront product manufacturing costs, but at a substantial risk.

Although JIT is biting a number of firms, there are others that are caught up in the collateral spillover in other industries. As I mentioned in an earlier post, even if one can supply a product there are other items needed for the final installation... like power supplies, electrical boxes, etc which around my area are in short or limited supply. The result is that the project cannot be completed and so cannot be billed out... and so this can affect the end installer's bottom line.

This seems like another real problem with the fabs. The bulk of the capacity is comes from just a handful of fabs and their raw input suppliers being such a specialty industry.

Fabs are an issue for sure. However, the raw materials needed for a fabs are also needed... but also very specialized staff. The latter is very important, as the old adage of "build it and they will come" is not as straightforward as it once was. No, one needs thorough planning and deep pockets.


You raise a good point about China's energy issues and their attempts to work through it and the resulting consequences to manufacturing plants. From what I have been hearing energy costs are rapidly escalating all over quite dramatically. Locally we saw and are seeing our local energy rates increase by about 50-100% and we even have local energy production!

Fun times.... give me a whisky

Cheers,

Sam

[s2sam]

Good read. Thanks for that.

Good day numbawunfela,

You are most welcome and my apologies for being the bearer of the news. However, being aware allows one to prepare and hopefully minimizes these global affects.

Cheers,

Sam

[s2sam]

Just heard my Spyders won't be in till December, jaces 3 + weeks away, called for some BACnet routers from CC, 12-16 weeks. Good thing my jobs aren't starting until January.

Good day y7turbo,

I cannot speak to end product suppliers, but I received notifications from my component suppliers that many parts will be shifting to allocation. To those unfamiliar with this term in the electronics inventory, allocation means that the manufacturer will attempt to "allocate" their inventories somewhat proportionately to their customers. It is not a perfect process, as I am sure those with deep pockets will get product sooner... but does prevent some fly-by-nighters and unscrupulous suppliers to hoard inventory for resale at extreme markups. In the past allocation was mostly used for DRAM, etc and a few specialty processors... but now it will be used more often. I am OK with allocation, as this would mean that I would have more accurate delivery dates and more stable prices... as opposed to now which is a total crap shoot.

Cheers,

Sam

[JSLLC4Life]

I am now being told a 50HP VFD from Danfoss is a 6 month lead time.

[R600a]

I am now being told a 50HP VFD from Danfoss is a 6 month lead time.

They are going to build it by hand starting with mining the minerals.

[orion242]

Add Veris H608 current switches to the list.

[BBeerme]

Just give it 240 in the meantime. Maybe a relay to bump up to the 460 if the supply air static gets too low.

LOL

I am now being told a 50HP VFD from Danfoss is a 6 month lead time.

[numbawunfela]

ABB drives are better anyway

[JSLLC4Life]

ABB drives are better anyway

Both are good in my experience. Danfoss tech support is top notch. One reason we stick with Danfoss if given the choice is they are available through Distech so it helps meet sales expectations. It also good to have access when a Trane drive fails as they are private labeled Danfoss and Trane quotes replacements high as they assume they have no competition.

[numbawunfela]

My apologies. I meant it tongue in cheek, but did not properly advertise that.

[JSLLC4Life]

My apologies. I meant it tongue in cheek, but did not properly advertise that.

All good. Danfoss customer service sucked pre-pandimc. I could never get a straight answer from them what we could resonantly expect to be able to pay extra for expedited product in an emergency when money is no object.

[Nanny10]

thanks for the info man

[orion242]

Anyone got a whole wad of material on back order with HW?

Good news!

As world markets continue to react to an improving economic environment, the demand for direct materials and logistics and resulting cost inflation continues to escalate.

As a result, effective November 15, 2021, all existing and new purchase orders submitted to us from our Distributors will see an additional line item for a 7% surcharge for all Honeywell products. The Inflation Surcharge is being implemented as a reaction to market conditions. If inflationary pressures were to decrease, we would revisit the need for the charge.

Those devices you have been waiting just got a price hike. We know you can go back to all your projects under contract and just pass this on though lol.

[y7turbo]

That price hike, plus I was told they aren't making strykers but are focusing on Spyders right now. If your job was bid for strykers, tuff luck pay more for the Spyders and now another 7% . I'm waiting for 70 vav controllers. Not in a huge hurry, the fan power boxes aren't here yet either.

[orion242]

Lol, think most would be happy to pay the 7% if they could actually deliver the crap at this point.

[Answer-Man]

Good day All,

Just a heads up about the ongoing Worldwide Electronic Component shortage... For the past 6-7 months there has been significant leadtime increases on a large number of electronic components do to a variety of factors (you are welcome to google why this has and is occurring). For the most part the shortages were somewhat confined to processors (micros, etc), DRAM, Flash, etc. However, now I am seeing that the shortages are on everything above simple discretes and basic transistors. Last week I was checking on inventory on a number of power supply devices and every one including vendors I do not use have zero Worldwide stock... with an estimated availability of Nov/Dec of 2022! So... if any of you or your customers are thinking about needing any HVAC controllers (pretty much all use processors, ram, etc) they best be ordering asap, as if they wait too long they will have to wait many, many months for product. The byproduct of product shortages means that this could also affect those that install and replace these devices... after all, how can one bill to install and configure a device when one does not have a device.

Anyway, I thought I would post a PSA so you can all plan accordingly.

Cheers,

Sam

[added]
Here is a link that details the component shortage issues:

https://www.ept.ca/features/componen...sign-industry/

It's not just electronics it's almost everything that is imported and I really question why we have so many container ships sitting off shore waiting to be unloaded. I have told many, you had better brush up on repair skills and out of the box bypass ideas because it not projected to end as you stated until the end of 2022

[lwarren]

That price hike, plus I was told they aren't making strykers but are focusing on Spyders right now. If your job was bid for strykers, tuff luck pay more for the Spyders and now another 7% . I'm waiting for 70 vav controllers. Not in a huge hurry, the fan power boxes aren't here yet either.

They are not making Sylk IO's either, we had to search high and low to get some Sylk IO's for a job we are in the middle of now. Actually had to purchase them from another contractor that just happen to have 13 of the 12 we needed.

[y7turbo]

They are not making Sylk IO's either, we had to search high and low to get some Sylk IO's for a job we are in the middle of now. Actually had to purchase them from another contractor that just happen to have 13 of the 12 we needed.

That's not good news. I've got 10 Spyders and 5 Sylk IO's on order since September. I need them in probably 3-4 weeks at the latest. I think I've got a couple silk io in a cabinet somewhere I'll have to start looking. Thanks for the heads up.

[JSLLC4Life]

We sell Genesis Cable (Honeywell Residio). 14/4 minisplit cable has been unavailable for 6 months. We are starting to get a few units trickling in, but current orders are still months out.

Also, just spoke with Danfoss and after pressing the issue on lead times, they admit they have no idea.

[s2sam]

Good day All,

On the electronic component side of things it is a mixed bag. Some parts are slowly coming into the supply chain, but are being consumed in hours/minutes. The volumes are small-ish and so for the big guys the quantities are not enough for them. For my modest volumes and so I take whatever I can get. Some of the specialty parts like processors, etc are still being quoted with 52 week lead times. However, I have had some orders arrive much sooner than the estimate, but no one could tell me why... and since I actually have parts, I felt it best not to press the issue. Looking a few months out, a number of part manufacturers are projecting stock in mid to late Q1. Given that the New Year is almost here, I guess we shall see if these estimates are accurate.

Overall, I would say things are trending positive from a availability perspective. As for pricing... on average I am seeing component price increases of about 30%, however, there are some distributors that are adding margins far higher than that (10-20x) which seems somewhat suspicious...

Cheers,

Sam