July 29, 2021
Component Shortages: How long will this last?
One major manufacturer just speculated full recovery will take place well into 2022
Like many lighting industry people, we’ve had seemingly countless conversations in recent months about components shortages that are affecting the ability for lighting and controls manufacturers to build and ship products.
When we speak with manufacturers about the concerns, we get valuable insights. Lighting companies are openly discussing the supply chain challenges with customers and they go on to explain their plans to address the challenges. Most of the time, however, corporate managers and salespeople stop short of speculating how long these challenges will last. But Acuity Brands just did that, and it is refreshing.
It’s rare that a manufacturer puts what some might consider to be long-term bad news in writing. In tough times, companies sometimes mismanage the process of sharing negative news, and in doing so speak in vague terms and create false expectations that ultimately disappoint the customer base. The customer ends up unsatisfied and wishes that there was more clarity during the earlier stages of the process.
In a letter to OEM suppliers, Acuity Brands is delivering clear guidance about the duration of the supply chain challenges stating that “the timeline for full recovery is well into next calendar year.” The letter is written in the context of its Digital Systems (DS) group, which includes the recently purchased assets from Osram; product categories like LED drivers, LED light engines, electronic ballasts, and components for Internet connectivity. For many years prior to the Osram DS acquisition, Acuity Brands has been selling to OEMs with its EldoLED and Iota brands
Acuity’s written statement is the first that we’ve seen from a major supplier that speculates a time frame for the long road ahead. In other industries plagued by similar shortages, major automotive and consumer electronics suppliers are making similar statements about a 2022 recovery.
As North America’s largest manufacturer of luminaires, Acuity Brands understands both sides of the supply chain coin – components supplier and OEM manufacturer. The Digital Systems group is working to maintain realistic service levels to its long list of OEM customers, while keeping Acuity Brands’ own purchasing and planning people satisfied.
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