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European manufacturers critical to mitigating China components shortage

Published: 17 February 2020 - Carly Wills

European manufacturers hold the key to alleviating worldwide shortages in LED and other lighting components as Chinese factories halt production in the wake of the coronavirus outbreak, according to Prime Light.

The team at Prime Light have warned that businesses who rely heavily on imported products from China could be just weeks away from a critical component shortage, as the outbreak ripples through global manufacturing supply chains, forcing factory closures.

The warning comes amid reports that electronics companies in China face significant production cuts and possible delays in launch of products, further disrupting component supplies and costs across the world. 

In fact, as of last week, two-thirds of the Chinese economy remained closed. More than 80 per cent of its manufacturing industry is closed, rising to 90 per cent for exporters. Whilst Chinese vendors have already increased component prices by two-to-three per cent, due to supply shortages triggered by factory shutdowns, with fears this could rise further unless the situation improves.

Although many factories are expected to reopen shortly, delays in the design and prototyping processes could cascade well into the coming months.

Whilst the full extent of any potential impact caused by production delays from Chinese parts manufacturers is yet to be determined, the supply shortages are expected to primarily effect manufacturers buying finished or sub-assembled products from the region.

Commenting on the supply challenges, Russell Parr, sales and marketing director at Prime Light, said: “There is a concerted effort amongst European based suppliers to mitigate any component shortages from China and the surrounding regions. European based lighting manufacturers and suppliers will be central to alleviating any potential impact across the industry.

“By working with European suppliers, Prime Light is confident that the likelihood of any supply shortages, or indeed international trade issues are avoided as almost all components supplied are manufactured in the UK and Europe.”

“We continue to work closely with our suppliers and customers to minimise any disruptions, and we are confident that we will be able to fulfil orders and limit any potentially costly interruption in supply.”



 
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