SUPPLY CHAINS
“
The pandemic also had a large negative impact on the global supply chain by raising costs and restricting access to all components of fibre broadband network builds”
fluctuations, once converted to USD, this has seen $0.10 /F-km wiped off both price series, which has resulted in the company’s Optical Fibre Price Index (CRUofpi) falling for the first time since March 2021 – albeit down just 0.1%. Te company said that, based on that initial review, the steady increase in bare fibre prices could be slowing down. However, the European market is slightly
bucking this trend. Michael Finch, Head of Wire and Cable at CRU, said on a post about the bare fibre price update: “Domestic G652.D bare fibre spot prices there have actually increased by a further $0.20 /F-km compared to July, although given currency movements, this equates to a rollover in EUR terms. Rising energy prices and persistent tightness in 2022 Q4 could support European prices at elevated levels for longer, although soſtening demand will act as a drag. Overall, we expect some stabilisation in European prices as we approach the end of the year. Tere is scope for Indian fibre prices to edge back further, while in China, the spot market awaits news of the upcoming China Mobile tender. Early indications suggest this could be setled at 10% higher compared to the prior tender, which would mean implied bare fibre prices of around $4.30-$4.40/F-km – equivalent to current spot price levels.”
All hands on deck As with the semiconductor shortage, work is also being done within the industry to mitigate the problem. Te Fiber Broadband Association
Fibre Yearbook 2023
(FBA), for example, published a white paper, presenting vital statistics about the ongoing supply chain changes, alongside examples of how to protect projects from the negative effects of supply chain stressors. Entitled Strategies to Mitigate Botlenecks in the Current Fiber Broadband Supply Chain, the white paper was created by the Fiber Broadband Association’s Supply Chain Working Group, which includes supply chain experts from fibre manufacturers, electronics manufacturers, distributors, service providers and deployment specialists. Te publication is designed to help companies plan to overcome the current supply chain challenges and put in place more robust systems and processes to help face future challenges. Some of the mitigation strategies include
relationship building and communication, developing good relationships with suppliers and sharing long-term plans to navigate any potential future supply chain issues. Other strategies are: capacity build-out and nearshoring; product substitution; training programmes; supplier diversification; high-level design; scheduling management and forecasting; smarter technology; a move away from ‘just-in-time’ and expanding storage solutions. Gary Bolton, President and CEO of the Fiber
Broadband Association, said of the guide’s launch: “Te Covid-19 pandemic dramatically underlined the necessity of fibre broadband to support remote education, telehealth services, and work from home. Te pandemic also had a large negative impact on the global supply
chain by raising costs and restricting access to all components of fibre broadband network builds. Te FBA Supply Chain Working Group developed an industry white paper that offers multiple strategies for service providers in the fibre broadband ecosystem, including how to pursue stronger partnerships, long-range planning, high-level design optimisation, changing how companies recruit and train their labour force, and smarter technology options to plan and maintain stocking levels.” Scot Jackson, National Broadband Market
Manager at Graybar, Fiber Broadband Association Board Member and Chair of the Supply Chain Working Group, added: “Te Fiber Broadband Association represents the full fibre industry ecosystem, and we pooled the collective experience and insights of our stakeholders to develop this very important white paper for the industry. Te intent of this white paper is to provide critical information to help mitigate supply chain challenges and accelerate fibre broadband moving forward.” Looking to the future, CRU expects bare
fibre prices globally to ease back from 2023. Finch wrote: “We expect cost pressures in fibre production to fall in H2 and into next year as raw material supply constraints ease. Other input costs, such as energy, should also begin to normalise from 2023, although this will take longer for Europe. Additional fibre capacity in the form of Corning’s new fibre plant in Poland may also act to dampen the underlying price environment in Europe next year and beyond.” n
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