The situation with regards to Coronavirus (2019-nCoV) is changing daily, but since our last update on the 24th February, the latest advice from our supply chain is;
- The situation in China seems to be stabilising.
- But there is a significant backlog in many factories due to the ongoing reduced workforce.
- Employees returning to factories have to a follow a strict 14-day isolation policy before being allowed to return.
- Material lead times are now becoming a factor, with lead times up to two weeks being reported.
- Couriers do not appear to be currently affected.
- Capacity in Europe is stretched leading to extended lead times.
- There is currently no impact on factories in terms of restrictions or closure.
What does this mean for the availability of PCBs and components?
The most immediate short-term impact is likely to be PCB supply, with medium to long term impact possible on the supply of components, depending upon the location of factories and how long factories may operate at reduced capacity.
EMS does not solely source PCBs from China or Europe, but also from the UK, therefore if lead times in China and Europe do increase, we will with our suppliers be able to find a solution.
But, the advice from the supply chain is to forward plan and load orders at least as far out as June 2020 to secure access to production and raw materials.
If you have any questions concerning this statement, then please contact your Sales Representative who will be happy to help.