“With Orbit One we have access to a competent production partner who can manage large volumes in a quality-assured manner.”
Swedish Elvaco provides products and services for energy efficiency, billing and statistics within district heating, water, real estate, electricity and gas industries. Elvaco’s end-to-end solutions help customers throughout the world to develop their business in a sustainable manner. Orbit One is an established manufacturing partner for Elvaco, with production taking place at Orbit One’s modern unit in Poland.
New products and PPAP
“Elvaco is an exciting and continually growing customer. We have a very positive collaboration, and at present we are producing two completely new products and are also performing three PPAP (Process Part Approval Process) production processes, which is something that an increasing number of customers require for their new products”, says Orbit One’s Key Account Specialist Milena Słotwińska.
Customer-oriented company with high quality standards
“We chose Orbit One because it is a customer-oriented company with high quality standards.
The products that Orbit One manufactures for us come from different product segments, and Orbit One handles a variety of tasks including purchasing of materials, assembly of circuit boards, testing, delivery and services for returns and repairs”, says Elvaco’s COO Daniel Åkesson.
Access to a competent production partner
“Having our own production facilities is not part of Elvaco’s strategy as it requires major investments in resources such as production equipment and personnel. We have therefore chosen to utilise the benefits of contract manufacturing, and with Orbit One we have access to a competent production partner who can manage large volumes in a quality-assured manner”, Daniel Åkesson concludes.
Orbit One receives award in Russia
Orbit One recently received the prestigious ”Best Industrial Exporting Company” award when the Amber Mercury Prize winners were announced at a ceremony in Kaliningrad.Orbit One received the award for having succeeded in producing, delivering and fulfilling contracts with customers in an optimal and exemplary manner, despite the challenges presented by the COVID-19 pandemic.
Amber Mercury Prize is arranged by the Kaliningrad Chamber of Commerce and Industry to recognise the most successful representatives of the Kaliningrad region. The winners are nominated to the federal stage of the Golden Mercury National Business Award.
Several factors are driving the component market
Since December last year we have seen significantly increased demand for electronics products, and thus also an increased need for electronics components. But there are several factors that are driving the development of the component market, as explained by Orbit One’s Chief Supply Chain Officer
Marcus Gunnebrant.
A new economy has been created
“Demand is primarily being driven by 5G smartphones, increased demand for consumer products such as TV and gaming products, and the automotive industry. In addition, a new economy has emerged: the“Working From Home Economy”.Many people are working from home these days, which leads them to notice things that they might not otherwise think about, for example that their TV is starting to get old. Purchases can be executed quickly online, and there is currently more money available for such investments due to minimal spending on travel and restaurant visits.”
Limited capacity is a stumbling block
“The increased demand is causing problems at the earliest stage of the supply chain, in other words the manufacture of the raw materials for the components. These factories are already running at up to 90–100% capacity utilisation, which means that the increased demand takes longer to produce. The component manufacturers are also affected by limited capacity, not least due to the COVID-19 restrictions.”
Three factors are driving price increases
“This, together with the shortage of capacity within transportation, means that we are seeing longer lead times. The first price increases for materials came in December, and we are now experiencing the second wave. There are three primary factors that are driving the price increases for materials: increased raw material costs, transportation and manufacturing capacity. It is difficult to predict when this situation will be stabilised, but an educated guess is that manufacturers will catch up with current levels of demand around the second quarter of 2022.
Would you like to know more about the component situation?
Contact our Chief Supply Chain Officer, Marcus Gunnebrant, for the latest news and developments! You can reach him on +46 70 965 21 38 or via email: marcus.gunnebrant@orbitone.se
The curves are pointing upwards!
Summer is finally here, and the evenings are getting brighter. Things are also looking brighter for the industry. After more than a year in the shadow of the pandemic, we are now seeing an increasing number of positive signals. This is clearly noticeable among our customers, suppliers and business partners. It is also noticeable in the statistics, with more and more curves pointing upwards, and the gradual easing of restrictions in society. The signs are positive for the future!
At Orbit One we are also seeing a clear increase, and our customers will be able to benefit from the many investments that are currently ongoing within Orbit One. A lot is happening on the technological side of the business, and we are currently working hard on building new, fully automated production lines that utilise the latest developments in robotics. During the summer we will be installing our new, unique surface-mount production line while also optimising the rest of our machinery.
The only fly in the ointment at present is the global component situation. We know that all our partners are working to improve the situation, but things will continue to be difficult in the year ahead. Orbit One possesses unique supply chain competence, and I would like to take this opportunity to praise our supply chain team for their work during the past year. Despite the tough prevailing conditions, they continue to work in close collaboration with our customers to ensure successful deliveries to the best of their ability. Always with the aim of creating added value for our customers!
From all of us here at Orbit One to all our customers, suppliers, colleagues and friends: Have a wonderful summer!
