10 Mar Longer Lead Times on the Horizon
Silicon Shortages Cause Extended Lead Times on RFID, Barcode Equipment
Lead times for RFID chips and barcode technology are set to increase as global demand for silicon and high-powered semiconductors skyrockets. This means that you may receive your orders on equipment later than normal.
On average, lead times on RFID equipment are 10 to 15 business days, depending on the order. However, due to the silicon shortage, we are experiencing lead times anywhere between one to three months. In fact, some of our distributors say to expect lead times of up to 26 weeks.
WHY IS THIS HAPPENING?
Due to an increase in work from home opportunities and other pandemic-induced strains on the economy, consumers are purchasing and using more advanced technologies with high-powered semiconductors, which require silicon. Semiconductors power many technologies we use in our daily lives, from cars to computers to essential appliances, like washing machines. The same equipment used to create these powerful chips also make RFID chips, creating lead delays.
Raw Materials Prices Expected to Increase April 8
In addition to longer lead times on equipment, one major supplier for raw material components announced that they plan to increase their prices in April. They are the first, but we anticipate more suppliers will follow suit in the near future.
WHY ARE PRICES INCREASING?
There are several external factors that influenced this decision, including a spike in raw materials demand. Major paper and film stock providers have also announced price increases, as well as increasing freight costs.
How You Can Get Ahead
We want to do all that we can to keep your operations running smoothly. Here are some ways that you can get ahead on extended lead times and raw materials price increases:
START PLANNING NOW, WE CAN HELP
If you know what is coming, you can be prepared. Your sales rep can tell you how these lead times and price increases affect you, as well as keep you updated on the status of your delivery. Call 800-281-3056 or fill out the form below if you have any questions.
ORDER EARLY TO GET AHEAD OF LEAD TIMES
If it is possible, purchase your RFID and barcode equipment early to avoid supply chain disruptions. This will help expedite when you receive your orders.
We understand: This is a challenge. Let us help you overcome it. Please reach out to us with any questions. We are here to help you succeed.
WE’RE HERE FOR YOU.