Component shortages add to price pressure on lighting

SEVERE SHORTAGES of components, especially capacitors, are now predicted to last throughout 2018 and add to the pressure on the price of lighting equipment, especially drivers and ballasts.

That was the warning spelled out this week by Jacques Hing, corporate vice president with responsibility for passive components at Future Electronics, a major supplier to the lighting industry. ‘These shortages may continue unresolved for years, creating tremendous uncertainty in the market’ he cautioned his customers.

Jacques Hing of Future Electronics is warning that the severe and unprecedented shortages of capacitors, resistors, and power inductors will continue throughout 2018.  'According to our franchised suppliers, these shortages may continue unresolved for years, creating tremendous uncertainty in the market' he told customers this week.

‘Today, the electronics industry is facing severe and unprecedented shortages of capacitors, resistors, and power inductors.  According to our franchised suppliers, these shortages may continue unresolved for years, creating tremendous uncertainty in the market.

‘This unprecedented and severe gap between supply and demand has rarely been seen in the history of our industry and is mainly being driven by automotive sector growth, smart phones, wireless network infrastructure and IoT.

‘And with market demand continuing to far exceed current levels of manufacturing capacity, many capacitor manufacturers have been on allocation with very extended product lead times for almost 18 months.

  ‘In these very challenging market conditions, we are seeing an alarming number of orders on factories [cancelled] as manufacturers struggle to meet demand.

‘The result is a severe shortage of capacitors worldwide.  In addition, we have seen numerous significant price increases from our suppliers and we expect that there will be additional price increases in the future as the cost of raw materials continues to rise and the capacitor manufacturers attempt to slow down the rate of bookings’.

The rise in components prices is complemented by large increases in aluminium and other raw materials in recent months and, for US firms, a 25 per cent tariff on LEDs and LED modules.

Major lighting manufacturers are already passing on the increased costs to their customers. In the US, brands including Acuity, Eaton, Venture and Ledvance have announced price rises of between 6 and 8 per cent, citing rising costs of raw materials.

 

  • Component shortages will be one of the topics discussed at LuxLive 2018 exhibition and conference, taking place at ExCeL London on Wednesday 14 November and Thursday 15 November 2018. Entry is free if you pre-register HERE.

Comments 1

So they remove from the shelves all other forms of lamps and then hike up the price. This is an EU ponzi scheme

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