We received a notice from a vendor about an 8% increase on all goods. Not semiconductor, but used for circuit boards, enclosures, etc.
Quote:
As we rebound from the impact of Covid-19, the industrial economy continues to drive even stronger demand with constrained supply and increasing cost pressures across all supply chains. We have not been immune to this and since January, we have seen double digit cost increases across several key parts of our business to date:
Resins and Other Raw Materials: 15% - 59%
Other Raw Materials: 10% - 12%
Inbound Freight: 12% - 19%
We will increase list pricing by 8% on average across all products effective July 11, 2021 because we need to share in the cost increases in resins, other raw materials and inbound freight which we cannot fully offset through improved operational efficiencies in these unprecedented times. This will affect all orders placed on or after this date.
Interesting how they are going to clean that up. My understanding was that containers are often dumped during ocean transport and are generally left alone.
I am hearing 2023 from some of my suppliers for manufacturing to be able to get back on track. Also hoarding of parts going on. Components that used to cost us 50 cents are now $10 each. A lot of blame is placed on the “just on time” manufacturing philosophy, so chip manufacturers have no idea what they should be producing. Also not very many IC foundries. They’re expensive to build and don’t have a very good ROI, so there isn’t a huge rush to build them.
