A Shift in Electronics Manufacturing

Two years into the pandemic, the world of electronics manufacturing is undergoing many changes. From partner relationships to processes, learn more about why these changes are taking place and what the future may hold.

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The Covid-19 pandemic brought change to across the globe.

From the daily lives of individuals to how businesses operate, shifting was a necessary part of addressing the challenges. The semiconductor industry was not immune to the impact of the pandemic. Lack of supplies, lengthy lead times, labor shortages, and more have all contributed to changes in the system. One of these changes is the shift in electronics manufacturing. Electronic component distributors play a major role in the supply chain. Without them, manufacturers wouldn’t have the supplies they need. 

Simply put, distributors work with many manufacturers to get parts where they’re needed. Each distributor works differently, and distributors wear many hats in the process. How has the pandemic changed the landscape of manufacturing? Read on to learn more and find out what lies ahead.

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Gaining More Control Over Supply

Reshoring efforts are ramping up in the U.S. With legislation preparing to offer a package worth over $50 billion, the question of how this will shift electronics manufacturing arises. In an effort to increase supply chain resiliency, the reshoring of fab plants requires short-term and long-term problem-solving. The pandemic and other world disruptions made the weaknesses of the current supply chain setup clear. Depending on foreign semiconductor production brings risks that many would like to avoid in the future. 

While America has historically focused on design, other places, such as Taiwan, invested more in production. The choice is bringing success for them and hardships for the U.S. The U.S. is known for its leadership in design, but in a situation like the one we face currently, the production issues are overshadowing this. 

Despite making moves towards more independence, many argue it’s clear that foreign partnerships will need to remain for other aspects of the process. 

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Supply Chain Risk

With the current obstacles in mind, there’s no doubt about the increased risk facing supply chains. Many businesses do not have the supply or capability of meeting the needs of their customers. Increased lead times, shortages, and other world tragedies continue to compound the issues. 

As a result, new partnerships have developed out of necessity. For Ford and General Motors, this looked like establishing “strategic agreements” with semiconductor producers. For many, choosing to partner with an electronic component distributor is the best choice in helping secure their supply chain and building resilience

Above all, it is clear that collaboration from all members of the supply chain is critical to coming out on top.

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Competitive Pressures

Technology has evolved rapidly over the years and it shows no signs of slowing down. With the increased growth comes the expected rise in competitive pressures as well. Thankfully for global companies, this is where the strengths of collaboration come into play. Electronics Manufacturing Services providers have the global reach that many companies need. As technology becomes more advanced and requires more intricate parts, the partnership between OEMs and manufacturers comes into play as well.

Because of OEMs’ relationship with manufacturers, products make it to market faster. With the increase of innovation comes a heightened sense of responsibility for sustainability as well. By investing in extending the life of products, minimizing waste, and more, the partnership allows for an improvement in sustainability as well.

To achieve results that have never been dreamed of, processes, ideas, and relationships must all show increasing flexibility.

Close up of electronic circuit board

Benefits of Electronic Component Distributors

In a market that is increasingly competitive and risky, partnering with an electronic component distributor comes with many perks. For starters, distributors enable you to source obsolete components while saving time, money, and resources. Many distributors work with multiple global connections, providing access to more components and broadening the search area.

Electronic component distributors yield confidence and peace of mind when placing an order with parts that are traditionally difficult to access. The setup of electronic component distributors also allows them to provide timely delivery and peace of mind against counterfeit products. Lastly, and possibly most importantly, working with a distributor gives you a relationship to rely on.

When you are in need of help with a tricky order, questions about a component, or more, your distributor has employees who work around the clock, often in global locations, to provide the help you need. This enables businesses to focus on innovation, sustainability, and customer satisfaction.

While the electronics industry often brings complications, it also plays a vital role in advancing society. Despite the many ups and downs of the last two years, the industry has proven its resilience and desire to pursue innovation. 

As a trusted global electronic components distributor, we provide our partners with flexible solutions, authentic communication, quality products, and more. Are you in need of a supply chain partner? Get started today with our RFQ

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