Suppliers’ capacity utilization. This criterion indi-cates the risk of supply bottlenecks. In a cyclical upswing, with suppliers’ production running at 90% of capacity, the probability of a bottleneck in the supply of a strategic item is extremely high. Electronics manufacturers that have neither their own chip-production facilities nor adequate contractual coverage have nightmares whenever demand for microchips heats up. A European aircraft manufacturer had specified high-grade titanium alloys for certain applications but had failed to reckon with potential supply bottlenecks. After a series of production setbacks and cost increases, it has now switched back to specialty steels.