Coronavirus Expected to Cause Five-Week Product Shipment Delays, Says Electronics Manufacturing Industry


Reading time ( words)

Electronics manufacturers anticipate at least a five-week product shipment delay from suppliers due to the coronavirus epidemic, according to a survey conducted by IPC, a global electronics manufacturing association. The group says shipping delays from China and other countries where the virus has spread are already having negative impacts on manufacturers.

Roughly 65% of manufacturers report their suppliers expect, on average, a three-week delay. However, electronics manufacturers expect delays to be longer than what their suppliers are currently quoting. On average, executives expect shipment delays to be at least five weeks.

“The delays will likely have ripple effects for the rest of the year,” said John Mitchell, IPC’s president and CEO. "The longer China is affected by the epidemic, and the more it spreads to other parts of the world, the supply chain will experience more and varied strains and disruptions.”

An overwhelming majority (84%) of electronics manufacturers and suppliers are worried about the epidemic’s impact on their business operations. Delays in receiving supplier inputs can lead to factory downtime, higher average costs, transportation bottlenecks, pressure for alternative sourcing, delayed sales, and delayed prototyping that slows the introduction of new products.

“In most cases, it’s not easy for manufacturers to switch suppliers, if that’s what turns out to be necessary,” added Mitchell. “Securing alternate sources requires an investment of significant time and money that must be weighed against the value gained.”

IPC surveyed industry professionals at electronics manufacturing companies, including original equipment manufacturers (OEMs), electronics manufacturing services (EMS) companies, and printed circuit board (PCB) fabricators. Almost half of the survey respondents represent the contract electronics manufacturing services (EMS) industry. This segment performs an estimated 25% of North American electronics manufacturing for OEMs. The survey was conducted between February 11–16, 2020.

IPC will continue to perform regular surveys and research on this issue.

About IPC

IPC (www.IPC.org) is a global industry association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 5,800 member-company sites which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $2 trillion global electronics industry. IPC maintains additional offices Washington, D.C.; Atlanta, Ga.; Brussels, Belgium; Moscow, Russia; Bangalore and New Delhi, India; Bangkok, Thailand; and Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou and Beijing, China.

Share

Print


Suggested Items

Top Five Takeaways from IPC APEX EXPO 2021

04/15/2021 | Chris Mitchell, IPC VP, Global Government Relations
IPC APEX EXPO 2021, which went all virtual this year, exemplified how the electronics industry has responded to the COVID-19 global pandemic: with resiliency, agility, and an unwavering commitment to build electronics better. APEX EXPO featured great content and robust discussions on topics of critical importance to the global electronics industry. From my vantage point leading IPC’s government relations programs, here are my top five takeaways from this year’s event.

Highlights on a Rousing Virtual IPC APEX EXPO 2021

04/14/2021 | Pete Starkey, I-Connect007
What a week that was! I didn’t get to endure the 11-hour flight each way, neither did I need my comfy old shoes, but it certainly was a marathon event. And real-time-plus-six-hours gave me a few late nights, but it was such a meaningful experience, and well worth the effort!

IPC Supporting Newcomers in the Industry: Notes from IPC APEX EXPO 2021

04/01/2021 | Marc Carter, Aeromarc
With the wrap-up of IPC APEX EXPO 2021, it was extremely gratifying to note the emphasis placed on getting young people involved to combat the “graying out” knowledge losses facing our industry. A part of that emphasis was reflected in the award ceremony on Tuesday, March 9, which featured some people you may have seen mentioned in my “Better to Light a Candle” columns.



Copyright © 2021 I-Connect007. All rights reserved.