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The pandemic has put a pause on the launch of new electronic products.
2020-06-08
In addition, there has been a rise in redesigns of electronic products due to component shortages. This means that product designs must now be “de‑risked” early in the design cycle.
Steve Flagg, CEO and founder of Supplyframe: “For a typical hardware product, 80% of its lifecycle risks and costs are determined during the design phase. Companies need to scrutinize what happens in this stage, as disconnects are all too common.”
When product delays are considered alone, the cumulative figures become even worse: the study found that 91% of surveyed electronics manufacturers reported that procurement issues have led to delayed product launches. Moreover, a growing number agree that OEMs must integrate engineering, procurement, and suppliers to address component shortages caused by the pandemic.
More than one-third of respondents reported that overall component costs are rising, while an equal proportion indicated that increasing material costs have forced them to redesign in order to replace components that are no longer available. Additionally, some respondents stated that they simply cannot fulfill customer orders.

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