Friday, 10. September 2021

    At present, you often read about electronic component shortages and/or allocation in the press. We would like to explain the difference between these two situations, as well as the effects on us - the BAYTEK company - and on our customers, as follows:

    In both scenarios, demand is greater than production capacity. In an allocation scenario, the available and required components are additionally distributed to the various markets according to a certain distribution key. On average, only about 10% of all electronic components are destined for the European market. The greatest demand in Europe is in the automotive and telecommunications industries. But also, the new and rapidly growing markets such as electromobility, leisure and consumer electronics currently require many times more electronic components. Added to this are the well-known after-effects of the Corona pandemic.

    As a result, prices and delivery times are rising. For some components, delivery times of up to >60 weeks are currently given, or simply no binding delivery times are given at all. Also, price maintenance is often suspended.

    An easing of the delivery situation is not in sight. The effects will continue to be felt indefinitely in the future. BAYTEK is therefore taking a proactive approach. The framework agreements and the forecast are adjusted by BAYTEK to the current situation. Coordination on product alternatives and possible changes will be discussed with the development department and other in-house departments, etc.

    In summary, BAYTEK urgently advises its customers to also review the current framework agreements and the planned forecasts in order to adjust to the current situation. Only with planning can adherence to schedules and price stability be guaranteed.

    Unfortunately, this difficult situation will continue for some time and will demand a lot from all of us. However, together we will overcome this challenge. Our primary goal is for you to experience first-hand in working with us what BAYTEK has stood for over 25 years: our commitment to innovative products, the highest quality, reliable service and trusting partnerships.

    Picture: Bru-nO Pixabay