Tuesday, April 16, 2013

Will The Recent Sequester Affect Military Components Market?

The acquisition of military components is often a frustrating task for manufacturers who are not utilizing the services of an electronic component distributor. However, the recent developments of the sequester will greatly affecting the purchasing allowance of the Department of Defense for military products is creating an even bigger problem for the supply chain. The sequestration which began on March 1, 2013, calls for a $46 billion spending reduction, $41 billion of which will be made through ending of contracts with military product suppliers and cutting their extensions.

While the sequester provides an additional obstacle, the old ones will continue to ensue. Specifically, the threat of counterfeit components continues to be immense across all technological industries. The use of sub-par components in the military can be especially catastrophic as lives of both soldiers and civilians could be put at risk if the product malfunctions. Subsequently, this will mean loss of profits and reputation for the issuing company.

The sequestration of the Department of Defense may have a positive effect on the sale of counterfeit products as manufacturers will have to be especially careful of the components they are purchasing. Counterfeit prevention can be ensured for manufacturers by hiring electronic component distributors to test their military components prior to utilizing them in production. When looking for a reliable supplier, consider several factors including their counterfeit prevention system, years in the business, and affordability.

Partnering with the right electronic component supplier is now more important than ever before. As the industry will inevitably shrink during the sequester, it is important to create a tight-knit circle of servicers a manufacturer can rely on. As always, quality should be the prevalent concern and a distributor with the best counterfeit prevention program may be your best option. For instance, Harry Krantz Company ensures that all of their inbound and outbound inventory is subject to a 30-point quality inspection checklist in accordance with the IDEA 1010 standard. In addition to their in-house testing, they also collaborate with outside qualified testing labs to ensure their customers receive quality components in a timely-manner.

Quality products must also come at an affordable price from a supplier that knows the market trends. With over 70 years in the business, Harry Krantz Company understands the military component market and is able to advise their customers on when to best buy, sell or keep their components.

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