Key drivers impacting the electronics industry

The day was designed to provide attendees with an update on current market conditions, guidance on how to navigate these turbulent times and advice on ‘best practice’ to safeguard supply chains.

NCAB Group experts were available throughout the event, to answer questions and discuss particular cases with individual customers.

The four companies who presented were as follows:

NCAB Group UK: PCB market update covering current lead times, cost drivers & material supply

The NCAB Group produce customers’​ most important component – the PCB. Its target group is customers for whom the PCB is a strategic product throughout the entire product life cycle.

Ryan Pellow, Managing Director, NCAB Group kicked off the open day with a market conditions report.

It seems that the outlook for 2021 was one of optimism with the global industry predicted to grow by approximately 6% compared to 2020. The reality was 9-10%.

The semiconductor industry showed similar optimism with forecasts from SIA predicting 8.4% globally, whilst WSTS predicted 10.9% growth. The reality was 26.2%.

It was noted that global supply chains were unprepared for the sudden COVID-19 recovery, supply chains were in uncharted territory and as a result, were unable to react quickly enough.

On top of this, demand for EV cars resulted in unexpected competition for copper foil and raw material costs spiralled at the same time, with demand outstripping supply. It was the perfect storm.

Q2 2022 saw a downturn in global manufacturing, falling for the first time in 22 months.

Whilst market conditions are challenging, savings are possible through design changes. These design changes do not need to impact the function or assembly process. Pellow recommends involving your PCB partner at the early stages of new projects and allow them to provide options.

Future Electronics: Market conditions report & guidance

Future Electronics specialises in electronic components distribution and develops efficient, comprehensive global supply chain solutions.

Sarah Fitzgerald-Smith, UK & Ireland Sales Director, and Justin Palmer, EMEA Supplier Development Director, Future Electronics presented their market overview and explained how the company can offer support.

Palmer spoke about several new trends and market drivers, including:

Green technology

• Electrification – vehicles, personal mobility, efficiency (supply and charging
• Renewable energy

Connected world

• 5G
• IoT

Automation/efficiency

• AI/ML
• Autonomous vehicles

Data management

• Storage
• Processing/analytics

Healthcare and wellbeing

AR/VR (metaverse)

Most reports on the market outlook for 2022 and 2023 predict a growth, with some saying the semiconductor industry is projected to become a trillion-dollar industry by 2030.

In reference to supply challenges, Fitzgerald-Smith went on to speak about designing for resilience and designing for availability.

Design for resilience: Selecting components to maximise production options over time (multisource at design stage)

Design for availability: Re-designing with lead times compatible with production schedule components

Digi-Key: A unique business model for a ‘new normal’ & ever-changing landscape

Digi-Key Electronics is an electronic components distributor. It has been committed to offering the broadest selection of in-stock electronic components, as well as providing the best service possible to its customers, aiding engineers through the entire design process, from Prototype to Production.

Mark Laing, Regional Business Development Manager UK & Ireland, Digi-Key kicked off the session after lunch by speaking about the digital world, Digi-Key’s solutions, and market projections.

As businesses look to increase productivity, stimulate innovation, and develop new channels for doing business, companies look to machine to machine (M2M) connections to broaden their capabilities.

Digi-Key offer a variety of digital solutions designed to reduce costs and errors and increase efficiency, accuracy, and time to market. Whether your business could benefit from APIs, EDI, or a Punchout Catalogue, Digi-Key can help take your eProcurement requirements to the next level.

Digi-Key also provides an enhanced traceability feature called Part Tracing for printing information to appear directly on cut tape products. This new development will enable engineers to better organise their components and also improve traceability.

Across the electronic component industry, the traceability of cut tape products is a frustration. Once the product is out of the labelled bag from the distributor, it can be difficult to identify. With the Digi-Key cut tape showing this information, not only does it help customers visually verify their cut tape, but they can also access the Digi-Key Traceability portal and look up further information as they need it.

DSV: Global logistics update covering Asia, Europe, and America

DSV provide and manage supply chain solutions for thousands of companies every day – from the small family run business to the large global corporation.

Due to COVID 19, consumers are buying more products online. Therefore, the container volume has grown. Supply chains have experienced disruptions, manufacturers are producing fewer goods and some facilities are unable to operate efficiently due to staff shortages, lockdowns, or illnesses.

This situation is affecting the whole globe. It’s unlikely that these issues are going to be resolved any time soon, considering some countries are still in or just coming out of lockdown.

The crisis not only affects ocean shipping, but the entire supply chain. Ships are stranded waiting to unload, containers are being stacked and trucks are often seen queuing for hours to drop off or pick up orders. This situation is likely to continue into late 2022.

All in all, the day provided the opportunity for networking and discussion. Sarah Fitzgerald-Smith from Future Electronics said: "It was a great event and great to be back in a face-to-face environment with so many customers. Good to network and share challenges and discuss how we can work together to navigate through the current supply chain challenges.”

Most importantly, it highlighted that no one company is alone in these difficult times.

Jack Lucas from Offshore Electronics said: “We have partnered with NCAB for over a year as our sole supplier for PCBs, but this event highlights that their enthusiasm and concern for our customers and their products doesn’t end in sourcing PCBs.

“It was a great feeling to be getting out and finally networking after two years of being stuck behind zoom calls, with interactive presentations throughout the day from leading industry experts. We left feeling optimistic about supply and the future of the electronics industry moving forwards and cannot wait to see what NCAB has to offer next.”