Fewer components in short supply

By Staff -- Purchasing, 2/22/2001

The effects of the fourth quarter are starting to be felt. Buyers are reporting better supply conditions, according to PURCHASING Magazine's survey of electronic buying conditions in January. Only 29% of survey respondents say there were components in short supply. In December, 46% reported part shortages.

Stability in supply conditions seems to be the name of the game for now. Seventy-one percent report prices are steady, 52% say their purchase orders over the next 90 days will be the same as the previous 90 days, and 71% say leadtimes are steady.

Only 9% say prices were falling. That percentage is likely to increase in the coming months unless demand for end equipment picks up significantly. Component manufacturers added capacity in 2000. With declining demand, prices can go nowhere but down for many parts.

While most buyers report few shortages, there are still some items that remain hard to find, including some embedded microprocessors, capacitors and resistors.