Unique solutions for complex dynamics

SMITH’s Vice President of Global Purchasing, Todd Snow

Smith’s VP of global purchasing, Todd Snow, explains how every individual component has a different story to tell in terms of availability, pricing and logistics

Since the Covid-19 pandemic’s onset, no two years in the electronics supply chain have been alike. While we expect uncertainties in some pockets and continuous growth in other areas for 2023, it’s difficult to predict exactly where things are headed as a whole. In the current electronic component market, each individual part has a different story in terms of availability, pricing and logistics, with this trend likely to be predominant throughout the new year.

From a historical perspective, inflation and other factors tied to the United States’ economy will surely be top of mind for many businesses and play strategically into their purchasing decisions. Our latest market intelligence shows slight improvements to allocation direct from manufacturers, lead times and obsolescence issues, but manufacturers are still lagging and having difficulties compared to pre-pandemic conditions. Additionally, we’re seeing allocation efforts begin to diversify, softening supply constraints for some industries while still leaving specific parts in other sectors with lead times pushed out to over 52-weeks.

As technology advances worldwide, demand for semiconductors to power new innovations will only continue to grow, which makes us optimistic regarding the market’s performance in the year ahead. Utilizing market intelligence and expertise from trusted independent distributors like Smith can help customers navigate the market with unique solutions for complex dynamics. Keeping lines active in the year to come will likely remain a challenge for manufacturers but relying on trustworthy supply chain partnerships can make a key difference in meeting business objectives.