Anglia warns of price instability as lead times shorten

Wisbech, Monday, 26 November, 2018, Anglia Components is advising customers that lead times on chip resistors and passives are now generally reducing – they are seeing 12-13 weeks now in some cases. However, the improved availability may lead to some price instability according to the distributor.

Commenting on the reasons for this development, Steve Rawlins, CEO, Anglia Components, observed, “Weak iPhone demand and a softening of the Chinese economy in the face of sanctions are two of the factors behind this. We believe we are in an inventory correction period as many customers have had to purchase in large quantities to secure components. I believe that this build-up of customer inventory could take till the end of Q1 next year to burn off.”

Steve Rawlins believes that although improved availability is good news in some ways, there is likely to be price instability as this material is worked through. He said,”For our industry in general massive lead time swings don’t do anyone favours in the long term as it becomes difficult to predict demand for both the distributor and the customer. We all want growth but in a measured way so everyone can plan material and at the end of the day deliver to the end customer on time.”

Steve Rawlins concluded, “Anglia will use this opportunity to rebuild inventories that we’ve been using to keep customers supplied during the shortages. We are working closely with our customers to understand their demand going forward, to make sure that we put in place the right stock profile and are able to keep supporting them whatever the market does in the longer term.”

Customers can visit www.Anglia-Live.com to see available products and inventory of Anglia’s chip resistors.

About Anglia
Anglia is the UK’s leading independent authorised distributor of semiconductors, optoelectronics, interconnect, and passive and electromechanical components. A signatory of the ADS SC21 programme, the company holds AS9120, ISO9001 & ISO14001 accreditations and IECQ-CECC qualification.

Technically adept, with an experienced team of staff, Anglia supports OEM and EMS companies in every sector of electronics manufacturing. Anglia’s suppliers include some of the world’s leading electronic component brands, complemented by many smaller companies with leadership in their chosen technologies.

Anglia stocks over 1 billion components from over 900,000 product lines in the UK. Components from every supplier are stocked in depth and breadth for same-day dispatch. Anglia aims to streamline logistics and reduce customers’ transaction costs through services that include KAN-BAN, EDI, and customer-dedicated inventory, while an accurate, on-time delivery performance is a vital goal for the company.

Technical support spans a sampling service that delivers over £150,000 worth of free evaluation parts each year and expert technical advice from well-trained product specialists and face-to-face guidance from field applications engineers. Both commercially and technically, management of industry legislation and component obsolescence are recognised as areas of vital importance to customers.

Anglia is driven by an ethic of ever-improving customer understanding and, as a privately owned business, aims to provide a fast, consistent and highly responsive service. Further information can be found at www.anglia.com

Press contact:
Peter van der Sluijs
Neesham PR
peterv@neesham.co.uk
+44 (0) 1296 628180