There has also been an increase in electronic product redesign around component shortages. This means that product design must now "de-risk" early in the design cycle.
Steve Flagg, CEO and founder of Supplyframe: "80% of the lifetime risk and cost of a typical hardware product is determined during the product design process. Companies need to check what's going on in the design phase because there's often a disconnect."
The cumulative Numbers were made worse when product delays were taken into account only: 91 per cent of electronics manufacturers surveyed said procurement problems had caused a delay in product launches, the study found. Many more agree that Oems must integrate engineering, procurement and suppliers to overcome component shortages caused by the pandemic.
More than a third of respondents said overall component costs were rising and the same proportion said rising material costs were forcing them to redesign to replace parts that were no longer available. Others said they simply couldn't fill customers' orders.