A question for market analysts …

I read with great interest the Valentine’s Day IHS iSuppli press release about the dramatic increase in the reports of counterfeits. What further observations can market analysts offer? Helpful information would include the following….

    Does this reporting reflect an increase in counterfeiting? Does it represent an increase in the willingness of various organizations to report? Does it reflect the result of investigations by the organizations reporting them that parts purchased over a period of time are now found to be counterfeit?

    What is the make up of the part suppliers associated with the sale of the counterfeits? (OCMS, authorized/franchised distributors, Independent Distributors, ‘brokers’, US Government excess inventory, industry excess inventory, etc)

    What is the make up the ‘countries of origin’ for the counterfeits? (The recent Senate Armed Services Committee investigation points to China as the predominant source of counterfeit electronic parts)

    What is the product make up of counterfeited products? (microelectronics, passive parts, mechanical parts, etc)

    What is the proportion of products represented with respect to their current availability through OCMs or their authorized suppliers? (out of production, long lead times, on allocation, available in ample supply)

A comprehensive analysis that answers these and other questions prompted by facts and data will go a long way to help both Industry and the US Government direct its counterfeit parts avoidance efforts where significant risks lie and improve the effectiveness of these efforts.

The following report is an example of comprehensive and meaningful analysis …

Defense Industrial Base Assessment: Counterfeit Electronics,” U.S. Department of Commerce, Bureau of Industry and Security, Office of Technology Evaluation, January 2010.

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2 thoughts on “A question for market analysts …

  1. Steve Ingardia says:

    Do you know of any plans to update this report since it is two years old?

    • I am not aware of any plans the US Department of Commerce may have to update its 2010 report. A routine assessment such as this would be very helpful to understand where the threats lie and determine the extent to which Industry and Government may need to shift its attention and approaches to dealing with the counterfeit parts problem.

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