Supply Chain and the Auto Industry

The strain put on the global supply chain by the ongoing COVID-19 pandemic has had far-reaching effects. Shortages have been felt across nearly all industries. Silicon Chips, Capacitors and Connectors have been impacted the most. The Automotive industry is suffering delays and PCB assembly shortages due to the lack of electronic components available in the market.

Manufacturing delays have been exacerbated by the timing of this pandemic, as well as the different responses and protocols from around the world. Differing global reactions, procedures and implementations of relief have caused global supply chain confusion and the dwindling of stock and supplies.

The just-in-time nature of most electronic components delivery left a small margin for error, as many manufactures only stocked the quantity of parts they expected to need for immediate builds. No one could have foreseen the immediate and lasting effect the lockdowns and shutdowns caused, and supplies began to dwindle.

As many people in the US and abroad sheltered, social distanced and kept travel to a minimum, production of consumer goods, including computers and automobiles came to a standstill. Existing orders were pushed back or canceled. Schedules were greatly disrupted. As we are coming out of this pandemic, demand for goods has skyrocketed.

The good news is that appetite for cars has not waned, despite pandemic-caused economic hardships. This slowdown came in tandem with people cutting back on services thanks to lockdown, so there was still money for durable and luxury goods. This demand provides an opportunity for manufacturers to make up for lost time. The manufacturing companies with access to the most raw materials and electronic components will have the greatest success as the economy roars back.

The key for contract manufacturers in all industries is to find a supplier who can deliver electronic components quickly, accurately, and at competitive prices. Spectrum Component Supply has been a reliable distributor in the industry for over 35 years. Our knowledge, industry alliances, and stock on hand allow us to empower our customers. We have had great success serving the automotive parts, car manufacturers and automotive PCB assemblers as their industry bounces back in a big way.

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