As the global electronics shortage stretches on and on, so do component lead times aerospace and defense-focused manufacturers rely on to deliver products to their clients.
Some common issues have been discussed at length: News organizations have detailed the effects of limited manufacturing capacity, pandemic-driven increases in demand, technological innovations, and more. However, other, lesser-known causes continue to impact supply chains worldwide.
Read on to discover three under-the-radar things that are currently slowing component lead times.
Base component lead Times
The semiconductor base materials needed for production are typically ordered together. But while smaller-sized materials may be delivered by air, larger ones tend to ship via ocean carrier — a much slower process. Coupled with extreme port congestion, this can prolong component lead times by weeks, resulting in idle production lines as they wait for that last shipment to arrive. Just one staggering order could interrupt a manufacturer’s operations; multiple, over an extended period, would hamper their ability to work at full capacity.
Global Manufacturing Constraints
With their wider inventories, international supply systems offer more positives than not. That being said, a global network brings global challenges. While a manufacturer in one country might operate without issue, another based in a different nation may face various constraints. Raw materials, like water and silicon, may be in short supply; facilities may not generate the power needed to produce components; or a natural disaster may have forced plants offline — whatever the specific cause, pressures like these negatively impact manufacturing capabilities and may have a ripple effect on the entire supply chain.
Part Profitability
As a byproduct of long component lead times and limited wafer fab capacity, semiconductor manufacturers have prioritized component production based on one chief concern: profitability. While understandable from a business perspective, this decision inherently limits the availability of less profitable, less popular parts — exacerbating shortages and, in turn, squeezing the manufacturers that need them.
Between extended base material delivery times, manufacturing constraints, and profit-driven part production, aerospace and defense-centric companies have plenty to contend with. However, there are ways to mitigate their influence on component procurement and obsolescence management.
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