Leadtimes for variable resistors may stretch
Buyers can expect stable pricing for variable resistors as many suppliers cut back on production capacity due to lower demand.
By Gina Ross -- Purchasing, 12/11/2008 2:00:00 AM
Buyers can expect stable pricing for variable resistors as many suppliers cut back on production capacity due to lower demand. But those cutbacks and further inventory reductions could extend leadtimes for variable resisters in the later part of 2009.
Variable resistors primarily consist of trimming potentiometers or trimmers, panel potentiometers and precision potentiometers. Because the trimmer market is very mature, prices don't fluctuate as much as other commodity components. Rising raw material prices particularly for metals have impacted pricing, but suppliers have not passed along costs to customers.
Some buyers believe that trend will continue. "If we continue to run at the same volumes we've been running at and have good strong relationships with the manufacturers, chances are my prices will be stable to slightly down based on what their manufacturing is doing," says John Miller, director of global sourcing, logistics and distribution for Curtis Instruments. The company makes gauges and motor controllers for electric vehicles and equipment in Mt. Kisco, N.Y.
David Valletta, executive vice president of worldwide sales at Vishay Intertechnology in Malvern, Pa., says prices for trimmers have been mostly stable, but prices can vary depending on the industry. For example, in the industrial market pricing will remain flat, but in automotive, prices may drop 2–5%.
Another reason for stable pricing is true supply and demand. With an industry slowdown there is a lot of price pressure because of less business, says Frank Pipitone, vice president of variable components at BI Technologies in Fullerton, Calif. He encourages purchasers to buy on more than just price, and consider a suppliers' leadtimes, quality, delivery performance and service. "I'd like to think that means something."
Some suppliers warn that capacity reductions may increase leadtimes for variable resistors in 2009.
"We have to cut back our production because demand has dropped, which may affect leadtimes," says Emill Melliz, product line manager for trimpots at Bourns in Riverside, Calif. Melliz says sometimes production is cut a little more than necessary and that is when leadtime fluctuations can occur. Currently, Bourns' leadtimes for trimpots are about four weeks, though he expects deliveries to stretch slightly to five to six weeks next year due to a scale back in capacity. The same is true for Bourns' sensors and controls group, which handles precision potentiometers and encoders.
"We've started cutting back on capacity because of lower bookings so we're looking at that on a monthly basis to make adjustments," says Chuck Manzano, product line manager for Bourns' sensors product line. "We are a build-to-order factory so we don't keep inventory of piece parts so any upticks or spikes in demand make it difficult to meet customers' requested leadtimes."
Electronics distributors are also starting to bleed off their inventories and are not placing as large replacement orders as they have in the past, adds Manzano.
Pipitone agrees. "We've had to implement capacity reductions primarily because of a major slowdown in distribution," he says. Distributors are ordering less and keeping lower inventories. However, Pipitone doesn't expect capacity reductions to impact leadtimes. BI's average leadtimes also range about four weeks.
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