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Supply Chain Impact

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AviSteve View Drop Down
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    Posted: 16 Nov 2021 at 10:11am
Valued Customers:

Like all manufacturers of electronic products, Avidyne has been subjected to unprecedented supply chain challenges in recent months. Despite our best efforts to maintain our costs and availability of components, including ordering our electronic components more than 52 weeks in advance of our production need dates, we have been subject to frequent supplier decommit to our orders. This situation is very dynamic, with new component shortages and price increases occurring daily. 

To give you an example of the challenges we face, we have a long-term purchase agreement for a particular component used on Avidyne’s IFD and Skytrax products. The supplier of that component recently informed us that despite our long-term supply agreement, they would be unable to commit to suppling any more until at least 2024. We were fortunate to locate an alternative source for a limited number of this particular component that allows us to cover our expected production of the affected products through 2022, but for an increase in price of over 500% of what we were previously paying. This increase in the cost of an already-expensive component, with no advance notice, is unfortunately not unlike the increases that we have seen for many of the components in our products in recent months.
To address these challenges, and to make our best efforts to continue predictable price and availability of all of our products, Avidyne is taking the following actions with immediate effect:

• We will honor all purchase orders received and accepted prior 
to today for shipment in 2021. 

• All promotions are suspended.

• All new purchase orders going forward and orders scheduled in 2022 will be subject to a temporary Component Cost Increase Surcharge. We will establish these surcharges at the beginning of each month. When we accept a purchase order, we will confirm the price and delivery of that order, or we will provide our best estimate of our timeframe for delivery. Please confirm this surcharge amount with your dealer.

As of the date of this post, all Avidyne products as well as the NGT9000 are in stock and available to order. However, despite our best efforts, we may be subject to unexpected interruptions in the availability of our products in coming months. To avoid being impacted by shortages, we very strongly recommend ordering equipment for your planned installations as soon as possible. 
We understand and regret the inconvenience of these changes. During this period of supply chain challenges, it will continue to be Avidyne’s objective to supply each order that we accept at the quoted price and on the quoted delivery date. Be assured we are working as hard as possible to mitigate future surcharges and potential supply interruptions. We will communicate future surcharge changes and any product supply interruption information as soon as possible. 

Feel free to reach out to marketing@avidyne.com with any questions.

Steve Lindsley
Avidyne Engineering
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dfw11411 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote dfw11411 Quote  Post ReplyReply Direct Link To This Post Posted: 17 Nov 2021 at 12:10pm
I was working with my avionic shop to put my Entegra panels on AeroPlan. Does the surcharge affect AeroPlan pricing? If so, how much? (The USB port on the MFD isn't working so a repair is required.)

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Post Options Post Options   Thanks (0) Thanks(0)   Quote AviSteve Quote  Post ReplyReply Direct Link To This Post Posted: 17 Nov 2021 at 1:25pm
At this point, the surcharge only applies to IFDs and Skytrax.
Steve Lindsley
Avidyne Engineering
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Post Options Post Options   Thanks (0) Thanks(0)   Quote dfw11411 Quote  Post ReplyReply Direct Link To This Post Posted: 17 Nov 2021 at 4:40pm
Thanks. I understand the need to have a surcharge. Your announcement was clear and honest.
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