Contract Electronic Manufacturing (CEM) providers are facing a supply chain bottleneck due to a shortage of components, it has been claimed
Market research firm iSuppli Corp shows that components and raw materials accounted for nearly 70 per cent of total inventories during the first quarter of 2010, while work-in-process goods made up about 17 per cent of inventories.
However, finished goods comprised less than 15 per cent and stood at their lowest level since the fourth quarter of 2008 an imbalance which is likely to persist, according to an iSuppli analyst.
"iSuppli believes that the current trend, in which electronics inventories are being weighed down by an overwhelmingly large percentage of raw materials, will continue for some time to come," he explained.
He added that such shortages, in both parts and raw materials, will only add to the strain of providers, even if they were to train their efforts to "simply maintain" current levels of inventory velocity.
Last month, a poll of 350 global firms carried out by PRTM found that supply chain volatility and uncertainty will affect how companies formulate their strategies.
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