Today’s myth – “Obsolescence Only Affects Semiconductor Buyers, Not Manufacturers”

While semiconductor buyers are often seen as the primary victims of obsolescence, obsolescence impacts manufacturers in ways beyond just component availability, including the obsolescence of materials and workforce skills, both of which present significant challenges.

Material obsolescence:

Material obsolescence is a major concern for manufacturers. As new technologies emerge, the materials required to produce certain components, such as specific alloys or chemicals, may be discontinued by suppliers. This can force manufacturers to find alternative materials that may not offer the same performance, leading to potential compromises in product quality or functionality. In industries like aerospace or defence, where precision and reliability are paramount, material obsolescence can create risks to the performance, compliance, and safety of the end product. Additionally, finding replacement materials often comes with increased costs and extended lead times, further disrupting production schedules.

Human obsolescence:

Human obsolescence is another pressing issue. As technology advances, so too must the skills of the workforce. Workers with expertise in legacy systems may move on or retire, leaving a knowledge gap that newer employees may struggle to fill. This lack of expertise in older technologies can make it difficult to maintain or repair products built with outdated components. At the same time, training new workers on both legacy systems and newer technologies requires significant time and resources, creating operational challenges for manufacturers.

The combined effect of material and human obsolescence forces manufacturers to constantly balance innovation with the need to support existing products. They must decide whether to continue producing older systems, which may become less cost-effective, or to invest in transitioning to newer technologies. This decision can create inefficiencies and disrupt production, especially in industries with long product lifecycles, like defence or industrial manufacturing.

To address these challenges, manufacturers, like buyers, need proactive lifecycle management strategies. This includes sourcing flexible materials, adapting production processes to accommodate both old and new technologies, and investing in workforce training to maintain the necessary skills for managing both legacy and emerging systems. These strategies will help manufacturers stay competitive while managing the pressures of obsolescence.