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Per IPC’s June Global Sentiment of the Electronics Supply Chain report, nine in 10 electronics manufacturers surveyed are currently experiencing rising material costs, while 86 percent of electronics manufacturers are concerned about inflation. Supporting data from IPC’s June Economic Report indicate there are three main forces exerting pressure on the economy, and conversely, the electronics manufacturing industry: geopolitical uncertainties, inflationary pressure, and China lockdowns exacerbating supply chain disruptions.
“Economic data from the last month makes the U.S. economy appear worse than it probably is, while the opposite is potentially true for Europe and China,” said Shawn DuBravac, IPC chief economist. “While Europe avoided a decline in the first quarter, it will continue to face a multitude of headwinds in the coming quarters.”
Additional survey results indicate:
- 78 percent of electronics manufacturers are worried about a recession in 2023
- 8 in 10 electronics manufacturers are concerned about extended supply chain disruptions due to a prolonged Russia-Ukraine war
- Rising labor costs appear most acute in North America where 86 percent of manufacturers report labor costs are currently rising. Only 58 percent of European manufacturers are experiencing an increase.
“The three key themes we laid out last month continue to hold: geopolitical uncertainties remain high in the shadow of Russia’s invasion of Ukraine, inflationary pressures are wreaking havoc on wide swaths of the economy, and China’s COVID lockdowns are exacerbating supply chain disruptions,” added DuBravac.
Pete Starkey, I-Connect007
The British Motor Museum in Warwickshire, housing the world's largest collection of historic British cars, was venue for the 2022 Annual Symposium of the Institute of Circuit Technology on June 8, which attracted a substantial gathering of manufacturers and suppliers from the UK printed circuit industry. ICT chair Emma Hudson reflected upon lessons learned during the pandemic lock-down and how the industry has successfully adapted to circumstances. She commented that the UK’s PCB fabricators are extremely busy, as she introduced an outstanding conference programme including a keynote from the incomparable Happy Holden.
Nolan Johnson, I-Connect007
I know I’m not alone in this behavior: Car advertisements during television commercial breaks are as good as invisible to me, until I’m thinking about getting a new car. Only then do I notice them. Rather, I see each one with all my attention and being. If that extends into our industry, then everybody must be itching to pick up some new equipment. This week’s must-reads includes a smattering of new product announcements, along with the news of the IPC European subsidiary.
Nolan Johnson, I-Connect007
The big news in the industry this week was the new bill introduced to the U.S. Congress in support of the PCB manufacturing industry. The Supporting American Printed Circuit Boards Act of 2022, which was introduced by Reps. Anna Eshoo (D-CA) and Blake Moore (R-UT), incentivizes “purchases of domestically produced PCBs as well as industry investments in factories, equipment, workforce training, and research and development.” The bill is a PCB-oriented complement to the semiconductor-oriented CHIPS Act of 2021.