-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueBox Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
Boost Your Sales
Every part of your business can be evaluated as a process, including your sales funnel. Optimizing your selling process requires a coordinated effort between marketing and sales. In this issue, industry experts in marketing and sales offer their best advice on how to boost your sales efforts.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Survey: Component Shortages are Driving Production Delays and Higher Costs for Manufacturers
September 23, 2021 | IPCEstimated reading time: 1 minute
A new global survey found that electronics manufacturers continue to be harmed by the global shortage in semiconductors and other components, parts and materials, leading to production delays, increased material goods costs, and a cloudy industry outlook. The survey, conducted by IPC, also found that companies continue to face significant challenges in hiring and keeping skilled talent.
“Supply shortages and other dislocations are impacting the global electronics supply chain and every downstream industry these manufacturers serve,” said Shawn DuBravac, IPC chief economist and lead researcher on the study. “Strong demand is helping industry sales, but shortages are delaying shipments and increasing backlogs. Manufacturers are facing higher prices as they compete for limited supply. This is a global phenomenon that is going to take well into next year to resolve.”
The survey results found that:
- Shortages are leading to delays. 88% of respondents have experienced increased lead times, and 31% saw production delays of eight weeks or more.
- Companies report the issue will not be resolved soon. 58% of companies expect the shortages to end in the second half of 2022 at the earliest.
- Global inventories – already depleted – are declining. 59% of respondents said that backlogs are increasing. 25% say inventory available to customers will continue to decline, and 48% say inventories will stay flat.
- Shortages are forcing companies to spend more to produce their products. 90% of respondents have paid increased prices to suppliers because of shortages.
- Companies are increasing wages and upskilling workers to address workforce hiring and retention. 80% of respondents believe the challenge of finding qualified workers isn’t likely to ease. Firms have increasingly taken to upskilling their workers on their own (46% of respondents), boosting wages (44% of respondents) and other measures to fill the gaps.
“While there has been plenty of attention paid to the shortage in semiconductors, it’s important to point out that electronics companies around the globe are facing additional shortages and backlogs, experiencing diminished inventories, and paying higher materials prices,” added John Mitchell, IPC president and CEO. “The current situation is unsustainable. If the current shortages extend beyond 2022 as feared, they will continue to have serious consequences for all industries tied to electronics manufacturing.”
IPC surveyed hundreds of companies from around the world, including a wide range of company sizes and representing the full electronics manufacturing value chain. Survey respondents were from North America (44%), Asia (20%) and Europe (17%).
Suggested Items
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.
Elevating PCB Design Engineering With IPC Programs
04/24/2024 | Cory Blaylock, IPCIn a monumental stride for the electronics manufacturing industry, IPC has successfully championed the recognition of the PCB Design Engineer as an official occupation by the U.S. Department of Labor (DOL). This pivotal achievement not only underscores the critical role of PCB design engineers within the technology landscape, but also marks the beginning of a transformative journey toward nurturing a robust, skilled workforce ready to propel our industry into the future.
Winner of The Science Show Rakett 69 Receives Incap Scholarship
04/24/2024 | IncapThe winner of the Rakett 69 science show, Andri Türkson, who stood out as an electronics enthusiast, received a scholarship from Incap Estonia, along with an internship opportunity in Saaremaa.
Alternative Manufacturing Inc. Awarded QML Requalification to IPC J-STD-001 and IPC-A-610
04/24/2024 | IPCIPC's Validation Services Program has awarded an IPC J-STD-001 and IPC-A-610 Qualified Manufacturers Listing (QML) requalification to Alternative Manufacturing Inc (AMI).
Boeing's Janene Stinson Earns IPC Excellence in Education Award at IPC APEX EXPO 2024
04/22/2024 | IPCThe IPC Excellence in Education award was presented to Janene Stinson, Boeing, at IPC APEX EXPO 2024 in Anaheim, California, in recognition of her significant contributions to workforce development and leadership.