LevaData held the first Generative Insights webcast on September 14, 2023, discussing commodity part pricing trends and insights on parts, metals, and ingredients. The session also covered the implications of part lead times dropping and the potential future trends in rare earth metals and plastics, which are integral in manufacturing.
Here are five of the trends shared by Keith Harley, CEO of LevaData, and Brian York, Chief Product Officer in the discussion:
1. We’ve seen a significant drop in lead times across the board getting close to pre COVID-19 pandemic levels creating weakening price support and potential leverage in future negotiations.
2. The lead time trend rise and fall has been particularly noticeable in integrated circuits which skyrocketed during the pandemic, and now has fallen and stabilized for the time being along with passive commodities.
3. The underlying trend of raw material price increases for plastics and metals is predicted to continue through the end of the year going into 2024.
4. Prices for rare earth metals have fallen back to pre-pandemic levels, providing manufacturers with opportunities for cost savings while they can lock them in. However, future demand spikes could drive prices up again.
5. Companies often focus on the most expensive parts in their products, such as the CPU or memory, but in many cases it's the weakest link in the supply chain that could impact you, such as nickel ore which in the past couple of months has seen double digit price increases underscoring why part risk intelligence is critical.
For additional insights and details on the trends mentioned above, view the full webcast here.
You can also download LevaData's September 2023 Generative Insights report here.