Avoiding Headaches from Chinese New Year's Slowdown

Posted on November 02, 2018
by Paul Schwanbeck
As we all know, the Chinese New Year is quickly approaching. The preparation for the Spring Festival starts in late January with the celebration beginning February 5th, 2019. Most of China’s manufacturing & distribution channels will close during the entire holiday, returning after the Lantern Festival on February 20th, 2019. Industry experts project this year’s slow down to be the most frustrating in recent memory, due to existing pressures from tariffs and component shortages.

As a reminder, the US-China tariffs on bare PCBs are increasing from 10% to 25% on January 1st, 2019, causing many US electronic manufacturers to place orders in advance, to avoid the price hike. The electronics industry is already experiencing a passive component shortage, and shutting down facilities in China will only further increase lead times. Despite these challenges, Pro-Active Engineering is here to support you and offer solutions.


Recommendations

  • Provide a Bill of Materials with at least two substitute sources for each component.
  • Order in advance of the Chinese New Year to avoid potential delays and price increases from the tariff rate increase.
  • Pro-Active Engineering’s in-house Speed Shop offers three-day quick-turn prototyping, and small volume runs for all of your time sensitive deadlines. Our preferred vendor list includes many high-quality domestic bare PCB manufacturers to aid in getting your product quickly.
  • Should you need assistance we offer an industry-leading BOM Scrubbing service by SiliconExpert to identify those end of life components and long lead time items.
While all of this might seem a bit overwhelming, let it be our headache and not yours. We always strive to make sure every job is on time, on spec, and within budget.

Tags: Communication Supply Chain PCB Assembly Quote Lead Time Insider

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