Contract Manufacturing
How electronics manufacturers can reduce the impact of supply chain disruption
Copper-clad laminate (CCL) manufacturers are into their seventh round of price increases this year, while DRAM contract prices increased by 60 per cent quarter-on-quarter in Q2 and lead times for microcontrollers have extended to as much as 52 weeks. Unlike the 2018 MLCC shortage and 2021 chip shortage, today’s supply chain pressures are being driven by a structural change in demand, with the enormous growth of AI computing putting pressure on production capacity. Selina Lee, VP of SCM at electronics manufacturing services provider Ryder Industries, explains how a proactive approach to supply chain management can help reduce purchase price variance (PPV) and protect production timelines.
Step one: Looking beyond the immediate purchase price PPV refers to the difference between the previous purchase price and the new price actually paid for a component or material. When component prices are moving quickly, reacting only when an increase reaches the bill of materials can leave manufacturers with limited options.
26 October 2026
Ryder’s approach begins with monitoring raw material markets, including metals, IC manufacturers, and the raw materials used in PCB production. Where supply is expected to tighten, working with customers to forecast demand and advance purchasing can allow suppliers to secure raw materials and allocations before demand increases further.
Components in Electronics
This cannot eliminate market-driven price increases, but it can buffer inventories at earlier pricing levels and reduce the immediate impact on the bill of materials. In fact, Deloitte’s 2026 analysis of AI infrastructure notes that companies that locked in component supplies months in advance may face less immediate pressure, with procurement potentially shifting
from just-in-time to just-in-case as supply constraints persist.
Step two: Building resilience through multiple sources A supply chain that depends too heavily on a single component source can be particularly vulnerable when availability changes.
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