Don't get me wrong, I love the idea of electric vehicles. It's great for the environment, and not to mention, with the rising cost of fuel, great for my finances too! And with Frances recent announcement of its 2040 deadline for phasing out all non-electronic motors, and Volvo stating that in just two years time all new models will also include an electric motor, it won't be long until we start to see a noticeable change in the market.
But with the rise in demand for electric vehicles, and therefore, in turn, the demand for electronic components in high volumes, what will this mean for SME's within the electronics industry?
Electronicsweekly.com predicts that we should 'expect massive changes as the market adapts'. Arguably the first thing that could be hit hard by the increase of electric vehicles is supply chains. And as most OEM's and EMS companies know, supply chain excellence is key to manufacturing success. So, what will the rise in electric vehicles mean to us? Well, initial thoughts are longer lead times, rise in price and potentially higher rates of obsolescence as the demand for technology advancement increases to mimic consumer demand. With these changes in the not too distant future, how do you plan to protect your supply chain? We would love to hear your thoughts in the comments below.
Growing demand for components from tier one automotive firms has been mooted as one cause of strong sales and extending lead times in the market. This is before the shift to electric really takes hold, so expect massive changes as the market adapts.