Global Supply Shortages

Global supply challenges addressed by Denca

As early as 2018, the ability to meet demand was already causing issues in the electronic components sector. As a consequence, suppliers were implementing plans to ramp up production by the end of 2019. The aim was to overcome the issues relatively quickly. However, but as we all know, the Covid-19 pandemic intervened to throw a new spanner into the machine. A challenge quickly evolved into a crisis as key manufacturers across the world were no longer able to continue with their normal operations. One example would be the Chinese city of Wuhan, famous for the virus, but (unknown to most of us) is also very important in terms of the electronics supply chain. The lockdown dramatically hit component availability. The global supply shortages affected the electronics industry, both in China and across the rest of the world.

The industrial automation and systems integration sector was not immune…

With the continuing growth in the automation sector and as global demand returns to more normal levels, we are seeing shortages where they were previously unknown. Some of the key manufacturers in our sector are seeing a backlog of orders stretching well into 2023.

Global Supply Shortages require innovative solutions

Nevertheless, the work must go on. We still face time-critical projects. Despite the challenges, Denca is proud of our ability to come up with innovative solutions. We have built an extensive supplier list supported by a broad knowledge of industrial components. These help a lot. If a project is affected, we can often find options. We may be able to specify an alternative component that is equivalent, or even better, allowing the project to proceed. If appropriate we may also leave open the possibility for substitution with the original specified device at a later point, if necessary.

Yet sometimes a customer has little or no flexibility with component selection. Global company standards or certification may require a standard design with particular components. Even here, we are still able to offer some assistance. Our purchasing department and supplier network are well versed in sourcing difficult to find equipment and often find a way.

Our director had these encouraging words for our customers;

"We have found communication and flexibility are the keys to navigating these problems. The issues are global and as long as we work together with our customers, solutions can be found. Let us all hope the electronic industry catches up with the new levels of demand in the not too distant future and we can return to a more predictable supply chain." 
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