Commodity Intelligence Points to Increasing Supply Constraints for Manufacturers

Measures also indicate that the percentage of chips out of stock by the Top 4 automotive manufacturers worsened by 14 points quarter over quarter.

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The third quarter Commodity Intelligence Quarterly (CIQ), presented by Supplyframe, revealed a 77% growth of “red” dimensions in the supply and demand market dynamics heat map, which was previously a mix of yellows and reds, indicating that significant shortages will continue through the first quarter of 2023 at a minimum.

“Supplyframe CIQ provides an unmatched level of market intelligence for an industry that is deep into shortages and risks coming from every angle,” says Steve Flagg, CEO and founder of Supplyframe. “CIQ is critical for navigating the numerous obstacles in the present as well as future opportunities.”

From BusinessWire:

  • This CIQ also highlighted that there has been an increase in component prices of up to 40% as compared to last quarter. For instance, microchip analog device lead times are becoming longer, between 25 and beyond 52 weeks, and in some cases, up to 60 weeks.
  • Measures also indicate that the percentage of chips out of stock by the Top 4 automotive manufacturers worsened by 14 points quarter over quarter and by 22 points vs. the baseline (2020 Q2-2020 Q4).
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