Leadtimes are going crazy and double-ordering is commonplace. But it will all look a lot better in September.
That seems to be the most optimistic view I can find on the current supply side shortages in the distribution market.
According to one broadliner, double ordering is a real worry in the market right now, but it will not go on forever.
These things have a way of self-adjusting and this time it is the summer break which could come to the rescue.
There is an expectation that Europe's seasonal slow down in July and August will give the supply chain a break. Suppliers will have an opportunity to get back on track with meeting demand in the market.
Right now the demand for specific parts, especially passive components such as tantalums and film capacitors, is out-stripping supply so lead times are stretching to 24 weeks and longer.
But come September, after the market has paused for breath, the situation could look a whole lot better.
There's a certain logic in it, but can we assume the many China-based factories shut down for a summer break like production plants do in Europe?
Let's hope they're right. Enjoy your holiday everyone!
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