Electronics Industry Continues to Show Resiliency Despite Rising Labor Costs and Recruiting Difficulties
February 2, 2023 | IPCEstimated reading time: 1 minute
According to IPC’s January Sentiment of the Global Electronics Manufacturing Supply Chain report, 75 percent of electronics manufacturers are experiencing rising material costs, while 74 percent indicate that labor costs are on the rise. At the same time, profit margins, inventory from suppliers and ease of recruitment are presently declining, though ease of recruitment is rising at a faster pace in APAC and Europe than in North America.
With potential risks on the horizon including the threat of weak product demand leading to undesirably high levels of inventory, overall industry sentiment shows surprising resiliency per the January report.
In IPC’s January Economic Outlook report, IPC’s Chief Economist Shawn DuBravac forecasts a looming recession in both the United States and throughout.
Europe, but timing is still uncertain. On the positive news front, both the United States and Europe reported better economic growth during Q4 2022 than had been expected, but both economies are slowing.
“In the last month, we have marginally raised our forecasts for economic growth for both the U.S. and Europe but our expectations remain muted,” said DuBravac. “We expect the U.S. economy to grow 0.5 percent in 2023 (up from 0.3 percent last month) and we expect Europe will decline 0.1 percent in 2023, up from last month’s forecast of a 0.3 percent decline. The loosening of strict COVID restrictions in China will also add growth there and we now expect China’s economy to expand 4.7 percent in 2023.”
View the full reports:
Suggested Items
Latest test and inspection solutions from GOEPEL electronic at SMTconnect 2024
04/29/2024 | GOEPEL electronicGOEPEL electronic will be demonstrating automated test and inspection equipment at SMTconnect, taking place in Nuremberg from June 11 to 13, 2024.
Arlon Electronic Materials Awarded Requalification to IPC-4101 QPL for All Polyimide Specification Sheets
04/29/2024 | IPCIPC's Validation Services Program has awarded Arlon Electronic Materials Division, an electronics material manufacturing company headquartered in Rancho Cucamonga, Calif., an IPC-4101 Qualified Products Listing (QPL) requalification for the third time.
Warm Windows and Streamlined Skin Patches – IDTechEx Explores Flexible and Printed Electronics
04/26/2024 | IDTechExFlexible and printed electronics can be integrated into cars and homes to create modern aesthetics that are beneficial and easy to use. From luminous car controls to food labels that communicate the quality of food, the uses of this technology are endless and can upgrade many areas of everyday life.
Book Excerpt: The Printed Circuit Assembler’s Guide to... Factory Analytics
04/24/2024 | I-Connect007 Editorial TeamIn our fast-changing, deeply competitive, and margin-tight industry, factory analytics can be the key to unlocking untapped improvements to guarantee a thriving business. On top of that, electronics manufacturers are facing a tremendous burden to do more with less. If you don't already have a copy of this book, what follows is an excerpt from the introduction chapter of 'The Printed Circuit Assembler’s Guide to... Factory Analytics: Unlocking Efficiency Through Data Insights' to whet your appetite.
Listen Up! The Intricacies of PCB Drilling Detailed in New Podcast Episode
04/25/2024 | I-Connect007In episode 5 of the podcast series, On the Line With: Designing for Reality, Nolan Johnson and Matt Stevenson continue down the manufacturing process, this time focusing on the post-lamination drilling process for PCBs. Matt and Nolan delve into the intricacies of the PCB drilling process, highlighting the importance of hole quality, drill parameters, and design optimization to ensure smooth manufacturing. The conversation covers topics such as drill bit sizes, aspect ratios, vias, challenges in drilling, and ways to enhance efficiency in the drilling department.