Even Product Lead Times Feel the Pain of Semiconductor Shortages

Aurora Multimedia Corporation CEO Paul Harris:

“This past Sunday evening, there was discussion surrounding the growing lead times of products due to electronic parts shortages. Unfortunately, there is a growing shortage of semiconductors, resistors, capacitors and more, and lead times are now growing to 34 to 52 weeks, depending on the part. Prices of various parts have been increasing, as well, as a result of the shortages.

So, we do anticipate that, over time, manufacturers will probably have to raise prices on products. There will be much longer lead times and product shortages on the market. For Aurora, we’ve been doing our best to keep up with this on the forecasting, and we’re trying to stock up long-lead-time parts to be able to continue to produce products as best as we can. The biggest unknown that we’re going to all see in the industry is when a particular manufacturer runs out of product, then companies go looking for alternate equipment, which will keep moving around the industry.

When that happens, even us, we’re going to get a surge in sales, and that will prematurely wipe out our forecast for the products, and then people will move to the next company and to other companies that were out of product, come back online with product, including us, and so forth.

And this, unfortunately, will probably end up being a vicious cycle that could last until Q3. So, that’s pretty much the state of affairs of what is going on right now. Unfortunately, the best way to explain this phenomenon that’s occurring right now is that most manufacturers try to do a quarterly, or even every two quarters, forecast.

While we love to do a full year in advance, there are always highs and lows. And, especially with COVID, you don’t want to order too much, because the market shrunk. Now that that market has grabbed those parts to start building again, that, in conjunction with the tariffs and companies trying to move their facilities to places other than China in order to produce with the same capacity, has made for the perfect storm of this industry and not a place any of us like to be in.

But I can assure you our company is doing everything in our power to try to make this as easy as possible, to try to keep prices reasonable, to do our best to not raise prices on as many products as we can avoid doing that to, and to keep people properly informed as best as we can.”

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!


mastering AV sales strategies
Mastering AV Sales Strategies: A Diverse Market Requires Understanding Individual Needs
December 8, 2023

Mastering AV sales strategies in a global professional audio-visual (Pro AV) market, poised to reach $79.2 billion by 2028, requires much attention to detail. The surge in demand from corporate, government, and institutional sectors, driven by the need for enhanced productivity and efficient working environments, gives AV sales pros a lot of opportunity. In […]

Read More
cybersecurity in healthcare
Cybersecurity in Healthcare: Addressing the Growing Threat
December 8, 2023

To keep up with the growing threats, cybersecurity in healthcare is a high-level priority. The recent ransomware attack on Ardent Health underscores a stark reality for the healthcare industry: cyber threats are a significant and ongoing challenge. Mike Saylor, the CEO of Blackswan Cybersecurity, LLC, sheds light on the complexities of cybersecurity in healthcare. […]

Read More
effective debt management
Effective Debt Management Holds the Keys to Small Business Cash Flow and Growth
December 8, 2023

Effective debt management through a robust accounts receivable system is essential for small business cash flow and growth, necessitating automated payment schedules and strategic policy adjustments. Collaborating with a collection agency as a strategic partner can enhance revenue recovery while preserving positive customer relationships. How critical is effective debt management for the financial health […]

Read More