Supply chain 'bottleneck' creates problems for electronics manufacturersThe electronics industry has been affected by a component pile-up that's made the supply chain messy and inefficient.

According to iSuppli, a look at the five largest electronics manufacturing service providers showed that components and raw materials comprised 70 percent of total inventories during the first quarter of the year, while work-in-progress goods made up about 17 percent of inventories. Finished goods accounted for less than 15 percent.

iSuppli analyst Thomas Dinges has a theory as to why the supply chain is getting so backed up.

"Given that many suppliers were shuttered during the last years because of financial distress, the shortages have resulted in supply bottlenecks in industries," Dinges told the Wall Street Journal.

Finished goods were at their lowest level since late 2008. Based on earnings, conversations with industry insiders and semiconductor companies that are citing extended lead times and parts shortages as a major problem, Dinges expects the issue to persist into the near future at the very least.

Dinges published his findings in a report entitled "EMS and ODM Inventory for 2010 Looks Like a Sequel."
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