According to Charcroft Electronics’ director, Debbie Rowland, the way in which orders are being placed to support multi-year projects is changing.
The aerospace and defence market is currently very buoyant, with enquiries up and longer-term orders being placed. Orders being placed now are for periods longer than ever before. This is to try and stabilise price increases coming from component manufacturers. By ordering higher quantities to support longer term manufacturing and repair, the original equipment manufacturers (OEMs) can procure components in volumes which also keep prices down.
Despite the demand uplift, key components are being affected by long lead times and obsolescence. Some specialist semiconductors are being procured in quantities supporting 10 years of usage to avoid component end-of- life for aerospace projects with 10-year lifetimes.
Some OEMs are also facing being sole sourced on some components. Sole sourcing can be due, in part, to the cost of qualifying alternatives but it leaves the component vulnerable to price increases and the risk of not being available.
While many lead times have stabilised, some are still quite long. The backlog of orders placed two years ago to cope with volatile shortages are being addressed and lead times are being reduced. This has allowed real demand to be seen, which is not influenced or skewed by order backlogs.
Obsolescence will always be a major factor affecting supply continuity. It is essential to pre-empt obsolescence by finding alternatives early. This means keeping close to component manufacturers and it is paramount to discuss the status of components under threat of end-of-life. Distributors must be the oil between the manufacturer and customer. Knowledge must be accessed and acted on. Sharing information benefits the customer by providing continued availability and gives the component manufacturer a realistic usage forecast.
To succeed as a specialist distributor, knowledge of obsolete components must be retained, as websites are often updated and older data sheets are removed. This makes finding suitable alternatives increasingly difficult. It is the reason Charcroft maintains an archive of hardcopy datasheets going back to the 1970s and archives a digital copy of all CofCs to ensure long-term knowledge retention.
Geopolitical trade tensions are continuing to cause supply issues, the paper trail and required information is never ending. The distributor must have the specialist knowledge essential for supplying high-end and qualified components used in aerospace and defence markets. It is vital the highest level of knowledge and support is given to customers needing to source high-end components but buy in relatively low volumes.
There must also be an on-going commitment to securing the best delivery and working to prevent the delivery from slipping. A good mil-aero distributor does not just take an order and then forget about it. Specialist support must be constant, from handling the enquiry, to delivery on time, and in providing expert after-purchase support to buyers and engineers.