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Global Commodity Intelligence
Q2 2025 | APRIL - JUNE
Global Commodity Intelligence
Q2 2025 | APRIL - JUNE
Raw Materials for Interconnect Companies Disrupt Planned Shipments
Adam Ng, Director, Supplier Relationship Management
As we are aware of the recent severe North American winter storm that hit across the United States, Northern Mexico, and parts of Canada from February 13-17, this has impacted global markets for essential raw materials such as resins and based metals. In the case of resins, many suppliers have implemented force majeure, contractual terms creating continuity of supply issues and shortages for connector manufacturers.
These supply base issues for our connector manufacturers are creating shortages, extended leadtimes and price increases across all of our top suppliers.
Key Recommendations
- Provide longer rolling forecasts to manufacturers to ensure supply continuity.
- Touch base with the manufacturers to ensure supply is not constrained before execution if there’s a real need for PO cancelations or push outs.
- Update our system so that we capture the right planning parameters. Especially if there’s any latest manufacturers' update on lead-time extensions.
Official Notifications from Key Connector Suppliers
- 3M Letter
- AICC Group Letter
- Amphenol Letter Molex
- Letter
- TE Letter
In addition, commodity-driven raw materials such as copper, gold, tin and palladium have all increased in price. This has led to cost increases for all of the connector manufacturers, some of which are absorbing the costs while others are being passed along to their customers such as Jabil.
Palladium Price Historical Price Graph 
Although we are not experiencing universal pricing increases from the manufacturers, we should be prepared for this type of response from the connector manufacturers across the board.
We have already received notification from Amphenol related to pricing challenges.
From a demand standpoint, the easing of Covid-19 restrictions and certain markets' (e.g., automotive, 5G, IoT, PCs/notebook, gaming) resurgence has impacted some products' lead-time extensions.
Impact to Jabil and Its Customers
To date, we have not received any detailed parts list from the manufacturers on impacted parts due to resin or raw material pricing challenges.We will keep the team apprised of any specific part number issues. Also, we should manage any expectation for price reductions for this commodity.
We will continue to assess the overall raw material and supply situation and have continuous conversations with the key manufacturers.
If you have any questions, don't hesitate to contact me directly. (adam_ng@jabil.com)
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