We are getting closer to the end of 2022

As 2022 begins to wind down, Johan Larsson, Managing Director of PCB Connect AB, reflects on the current market situation and looks forward to 2023.

We are getting closer to the end of 2022, a year of continued disturbances. A more stabilized pandemic has been replaced with a very changed situation in Europe with the war between Russia and Ukraine.

Even if we, as PCB Connect, have not been directly exposed, it is impossible to consider 2022 without mentioning the war between Ukraine and Russia. This is an event that both affects and leaves an impression on us as a company as well as individuals.

Looking at other challenges for the PCB Industry in the Nordics and Europe in 2022, I think it is relevant to point out risk awareness and logistics.

When it comes to Logistics, during recent years, we have been facing and overcoming several challenges, and continuing into 2022, the war between Russia and Ukraine led to a total stop for rail shipments between China and Europe.

This, in combination with continued difficulties related to sea transports, forced an even bigger focus on air Shipments. The Covid situation has also continued to cause difficulties in the logistical process relating to continued lockdowns in China and limitations in the transit between Mainland China and HK, resulting in more uncertain transport lead times.

For PCB Connect, we have, considering the circumstances, still been able to handle this in a good way via our Logistics teams, a network of transport providers, and our warehouses; we have been able to offer a high service and performance level while tackling changing requirements.

Today compared to before the pandemic, it is harder to plan logistical solutions in the long term, and more administration and resources are required to keep up with the same level of service and solutions.

We need to work in a very agile way to tackle sudden changes in conditions on a day-to-day basis. In our warehouse in Sweden, which operates as a central warehouse for distribution to the main part of Europe, we have increased the number of staff related to the extra administration needed in combination with the great growth we have shown in recent years.

During 2022 I think it has also become more relevant to consider the stability of the supply chain based on the type of events we have seen during recent years, which requires not only the consideration of backup solutions but also that there might be a need to plan your supply from different parts of the world to secure the supply chain.

We have seen this topic being raised and considered more often in discussions with our customers, and this also led to that PCB Connect during 2022 started a wider proactive evaluation of PCB producers in also other Asian countries than China to secure our customer’s supply chain and enable PCB Connect Group the ability to offer a more diversified supply line.

Along with the continued shortage of semiconductors, demand planning for electronics manufacturing has become increasingly more difficult, and with the cost of rising energy prices continuing to impact manufacturers, having a flexible, adaptable, and responsive supply chain is of paramount importance.

With our factory-based management and inspection teams at PCB Connect, we continue to optimize our customer’s production while bringing down the cost and quantity of the inventory they must hold in stock.

As we look forward to the new year, while global supply chains will undoubtedly continue to face pressures from the global economy and geopolitical events, there is much to be positive about, and we look forward to continuing to adapt to the ever-changing global marketplace that we operate in.

For more information on how the PCB Connect Group can become the obvious choice for your PCB requirements, why not contact us at sales@pcbconnectgroup.com