Currently, approximately 35% of components that become obsolete face instant obsolescence, according to Datalynk.
Some sources are expecting instant obsolescence to continue to rise in the coming year, in line with new tariff introductions and raw material shortages.
Recently, many OEMs and CEMs have faced a growing challenge: receiving notices from their franchised distributors informing them that ordered components cannot be fulfilled due to sudden obsolescence. This scenario, where parts become obsolete without warning, is becoming increasingly common in the electronics industry.
This not only affects immediate availability but also disrupts long-term forecasting and production planning for companies across various sectors. In cases of instant obsolescence, manufacturers do not have an end-of-life (EOL) notice and buyers are left without a last-time-buy (LTB) opportunity.
Following the COVID-19 pandemic, the rate of obsolescence, and more specifically instant obsolescence, increased significantly. After the pandemic, demand for components surged. To maximise output, manufacturers focused on the most profitable lines, causing less popular components to become instantly obsolete.
Instant obsolescence may continue to increase as more export restrictions and tariffs are introduced. When a significant portion of a component's buyers are located outside its country of origin, rising export tariffs can make those parts less financially viable for manufacturers. Faced with higher costs and declining demand from international buyers, manufacturers may opt to discontinue production of the part entirely.
In response to growing concerns around component obsolescence, manufacturers are increasingly building layers of protection. However, even with these measures in place, the absence of an LTB opportunity can make forecasting exceedingly difficult. Manufacturers may unexpectedly be required to identify alternative components, redesign their products, or locate surplus stock in the market. For companies operating on a just-in-time (JIT) model or similar inventory strategies, this can create significant disruptions.
Instant obsolescence can dramatically affect high reliability and complex manufacturing industries like healthcare, automotive, aerospace and defence. Many of the products for these industries require extensive approval and certification, a process that, in itself, could take a significant amount of time.
Cyclops Electronics specialises in sourcing hard-to-find, obsolete, and everyday electronic components, offering manufacturers a reliable mid-term solution when parts become instantly unavailable.
With a global network of contacts and access to over 1 billion components in stock, including obsolete parts, we are committed to finding and delivering the components needed to keep production moving. This enables manufacturers to buy time while working on product redesign or finding an alternative part. Additionally, we can cross-reference parts and source suitable alternatives, ensuring that production continues without disruption.
Contact Cyclops Electronics today to begin building a relationship with us, ensuring we are on hand and ready to assist when unexpected component shortages or obsolescence occur. Call us at +44 1904 415 415 or email us at sales@cyclops-electronics.com to start securing your supply chain for the future.
