MARKET UPDATES – 24.03.21

GENERAL OVERVIEW

  • Lead times and shortages remain high, (we are seeing some component lead times at 52 weeks+).

 

  • For the time being, China remains a driving force for the global economy. In the medium term, however, structural problems such as slow productivity growth will slow the economy’s growth momentum.

 

  • Price increases now range from 5-20% due to raw material costs and availability.

 

  • Lack of Sea Freight availability is also increasing transportation costs and adding to overall delivery times from Asia into Europe.

 

  • Customers are being advised to place order schedules out to at least Q4 2021 as lead times from most suppliers are being pushed further out.