Avnet shares insights – optimism for supply chain tinged with uncertainty

The 2023 Avnet Insights survey reports that nearly three quarters (73%) of engineers who responded from around the world say the component shortages experienced recently in the supply chain have improved year on year year on year.

This is an improvement from last year, when 59% said the component shortages had worsened year-on-year. A large majority (66%) said there was an improvement in access to passive components while some were still struggling with microcontroller and analogue component supply with 20% and 19% respectively citing supply concerns.

While availability was the major concern for 69% of respondents, 29% were concerned about market conditions vs component availability. This figure is up from 18% in 2022.

Where the market will go seems an open field. Only 4% of engineers said they are currently using AI in their work and only 14% have plans to implement it into any project next year. Over half (56%) said they have no plans to use it.

Recent shortages have led to resourceful measures and Avnet’s survey revealed that the top three methods to handle lack of component availability was primarily seeking alternative sources for parts (32%), followed by increasing the buffer inventory (19%) and increasing the timetable of demand forecasts (17%). Seeking alternative sources was also number one in 2022 but this year engineers appear to be looking for longer term solutions to navigate disruption, observed Avnet, rather than going beyond the current approved manufacturer list which was in the number two spot last year.

The most popular supply chain strategy for managing the current chip shortage in 2023 was to improve relationships with distributors; this rose from third place last year.

Tried and tested design tactics are still in evidence, according to the survey. For example, when components are not available, most respondents say they use pin-to-pin replacements with better specs/more functionality (17%), drop-in replacements (16%), or redesigned boards (15%); responses similar to those in the 2022 survey. Popular strategies to better manage conditions were to design in standard approved components with multiple manufacturers where possible (25%) and testing and qualifying multiple parts that meet requirements early in the design process (22%). These were also similar to last year’s survey results.

This is the third annual Avnet Insights survey conducted among 316 respondents based in the Americas, EMEA, Asia and Japan in September 2023.