IABM component shortages survey paints bleak picture for MediaTech suppliers
Significant worsening of situation over last nine months
UK -22 February 2022
IABM has just published the results of its second electronic components supply survey. The picture is bleak, with lead times lengthening and component prices rising significantly since IABM's last survey in April 2021. Respondents also sounded the alarm on their financial positions if component supply problems persist for a further 12 months; there are very few signs that the situation will improve in the short-to-medium term.
97% of technology vendors reported being significantly affected by component shortages 63% saying they are severely affected (up from 40% in the April 2021 survey), 34% moderately affected and just 3% mildly affected (15% April 2021).
The survey finds that lead times for components have increased by an average of 74% and component costs by 44%, resulting in a 26% impact on final product costs.
Perhaps most worryingly, 86% of respondents reported facing moderate or severe impact on their financial sustainability if the issues persist for another 12 months.
The survey also asked how companies were mitigating the effects of the shortages on their operations. 65% are stockpiling components and 63% are redesigning products.
The findings of our first survey on supply chain problems with electronic components last April painted a worrying picture for our industry, said Peter White, CEO, IABM. The results of this follow-up survey demonstrate that the position has deteriorated further in the intervening months and will result in significant financial impact if the problems continue for the next 12 months.
With no early prospect of the component shortage problem being resolved, many MediaTech companies have responded by redesigning their products to mitigate issues with sourcing specific components, and/or stockpiling components where possible to keep their production lines flowing in the face of dramatically increased lead times. There is also evidence of component price increases which will either need to be absorbed by MediaTech suppliers or will feed through into increased end-product prices.
I would like to bring the BaM Stock Exchange to the industry's attention. We launched this last year to enable IABM member companies around the world to list their excess stock using internationally accepted parts codes and descriptions. IABM member companies who are experiencing shortages can search the BaM Stock Exchange listings to quickly discover if parts they require are available. It is a value-added service designed to keep short supply components within the industry to the benefit of all. I have been surprised that not many companies have taken advantage of the BaM Stock Exchange so far; perhaps this is the moment for them to do so, White concluded.
About IABM
IABM (www.theiabm.org) is the international trade association for broadcast and media technology. IABM facilitates the important networking and interaction between suppliers that shape and define the unique ecosystem of the broadcast and media technology industry.
IABM supports member companies with a comprehensive range of services across market intelligence, training, technology, exhibitions, and best practices - all designed to help them do better business. We hold the interests of member companies as paramount and strive to provide strong guidance and support at every level in all geographies.
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IABM component shortages survey paints bleak picture for MediaTech suppliers 
