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Shortage of components beginning to show its effects on the EMS industry In view of the developments currently emerging we would like to provide you with an overview of the current market situation of electronic manufacturing services (EMS).The incoming orders of the past few weeks have shown that, since the beginning of September, the seasonal year-end finish has developed this year again in spite of the widely proclaimed economic crisis. The volume of incoming orders in the fourth quarter is already clearly above that of the first three quarters. This is evidently a general trend also acknowledged by our suppliers and partners.
However, in the past few weeks we have been receiving more and more information from our suppliers every day telling us that delivery times are lengthening and capacity bottlenecks are occurring. Moreover, already confirmed deadlines are having to be postponed. Restocking periods at the manufacturers often have a direct influence on contract manufacturers!
 Our suppliers say this situation can be explained by the abolishment of buffer stocks in the past few months as well as a reduction in capacity. Furthermore, market capacity for components will only be increased again if it becomes apparent that the economic situation has made a lasting recovery. With this situation in mind we are now asking our customers to inform us of their foreseeable demand as quickly as possible and to extend their order planning on the basis of binding forecasts. As a contract manufacturer, we are in urgent need of such information so that we can arrange for adequate capacity planning and materials management. If you proactively communicate with us regarding your future demand, this will help us to plan ahead and for our service to meet your expectations. Please send any corresponding information to your Key Account Manager within our company so that we can arrange the necessary steps. If you should need any further information, please do not hesitate to contact us directly.
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