Electrical Supplies Shortage For Christmas

30 11 2010

New industry analysis into the electrical components industry shows that many must-have items could be at a shortage soon due to lead times increasing for core electrical products.

Research by supply management company BravoSolution has revealed that many companies are continuing to hold on to their cash reserves wherever possible for fear of buying redundant stock that they then cannot sell.

As a result, they claim, lead times for many electrical products have increased dramatically, hitting dangerously high levels that now stand at an alarming 52 days – five times higher than the previous 10-12 day standard.

According to BravoSolution’s analysis, electrical components such as transistors and other connectors, have been affected most in this inventory dwindle, risking a shortage of many of desired consumer electronics, such as games consoles and televisions, over the Christmas period.

“With lead times for core electrical products hitting unprecedented levels over recent months, there is a real risk that many of the most wanted goods will simply not be available this Christmas,” says  Paul Martyn, Vice President of Global Marketing, BravoSolution.

“Due to the surge in demand, the festive season is always a challenging time for retailers. With sales at risk at such a crucial time of the year, there is a real danger that quarterly results will be affected, which will ultimately have a substantial impact on the profitability and share price performance of both manufacturers and retailers alike.”

Top five potential product shortages include: Games consoles, MP3 players, Televisions, DVD players, Microwaves.

Entire industries have built up on the back of commonly used electrical products in recent decades, reliant as these products and more are on specialist and custom-made parts.

Companies such as NICOMATIC, who specialise in the design and manufacture of connectors and metal dome switching technology for membrane switches and mobile phones, are just one example of a company operating in particular manufacturing niches.

Challenger Components is one of the leading distributors in the UK of electrical component products.

Visit: www.challengercomponents.com for more information.




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