Electronic components under pressure due to global scarcity

Electronic components under pressure due to global scarcity
VDH Products has a well-filled order book. "The development of electronics does not diminish," underlines Jacco Smid, Manager BU Sales of VDH Products. VDH Products, based in Roden, Drenthe, is at the forefront of the development of electronics for, among other things, climate control systems, a sector of which much is expected. For example, the company makes electronics for climate control for luxury pleasure yachts, car spray booths and transport refrigeration.

VDH Products has positioned itself strongly over the years in various industries nationally and internationally. There has been a great deal of demand for new developments in recent years. VDH Products also benefits from the substantial increase in the demand for electronics, for example devices connected to the internet. These are the trends on which VDH Products, as producer and developer of electronic systems, is free riding.

Electronics components that are used for new systems are, in contrast to a few years ago, now only available for a limited period on the market. The developments are flying around fast because the electronics market is changing rapidly. This is also one of the engines of growth that VDH Products is experiencing. However, this growth, together with the larger size and complexity of projects, has an impact on the organization. In the coming period, we will have to further improve various processes in order to be able to continue to work efficiently, especially with a view to the worldwide scarcity of electronics components that we certainly need to take into account this year ‘.

New SMD line – Industry 4.0.
In order to meet the increasing demand, we recently decided to purchase a new fully automated SMD assembly line, which is positioned next to the current SMD assembly line. This new state-of-the-art SMD assembly line gives us the capacity needed to continue growing and allowing us to produce more efficiently and faster. In line with already implemented systems and processes, this is another step in Smart Industry 4.0.

Scarcity of components
The scarcity of electronic components still existing worldwide will most likely lead to delays in orders. We not only experience that the delivery times increase, but that in many cases there is allocation. Due to the increasing market pressure, the information provided about delivery times may vary per day. Our purchasing department therefore has frequent contact with our suppliers on a daily basis. Delivery times of a year are no exception. As a result, we as VDH Products ourselves must also deliver with delays. “Scarcity of components is and will become an ever increasing challenge,” says Jacco Smid, Manager BU Sales.

‘The developments are flying around fast because the electronics market is changing rapidly’.

In general, we are still confronted with long lead times and prices will partly rise. It is possible that if certain electronics components are not in stock, one has to switch to an alternative circuit, alternative electronics components where there is often a price increase. Customers are therefore increasingly recommended to provide long-term visibility, as this is the only opportunity to deliver on time.