Challenging Conditions Ahead for Electronics Manufacturers per IPC’s Electronics Supply Chain Report


Reading time ( words)

Per IPC’s September Global Sentiment of the Electronics Supply Chain Report 81 percent of electronics manufacturers are currently experiencing rising material costs while 74 percent indicate labor costs are on the rise. At the same time, ease of recruitment, profit margins and inventory available from suppliers are presenting declining.

Among other data, survey results show:

  • Demand, while still positive, is showing some signs of a slowdown
  • Lead-times are improving but much of the electronics supply chain expects lead-times to decline in the coming months and the recovery appears to be unevenly distributed
  • Inventory available from suppliers is expected to increase more among firms operating in APAC or globally than those in North America
  • Over the next six months, manufacturers expect to see continued increase in both material and labor costs, although to a lesser extent than what they are currently experiencing, especially as it relates to material costs.
  • On a positive note, manufacturers are anticipating a decline in backlogs over the next six months.

For the report, IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain. View full report.

Share




Suggested Items

Advanced Packaging Symposium: Looking in the Rearview Mirror

11/23/2022 | Nolan Johnson, I-Connect007
Matt Kelly had the vision and Jan Vardaman set the tone for the IPC Advanced Packaging Symposium, Oct. 11-13 in Washington, D.C. So, did they accomplish their goals? What were the real takeaways from the event, and what can we expect to see next? Spoiler alert: Matt and Jan came away impressed in more ways than one.

Working on the Hill to Build a Future

11/08/2022 | Nolan Johnson, I-Connect007
The message can’t be emphasized enough: Producing IC substrates overseas weakens America’s position and national security. In this frank discussion with Will Marsh, president of PCBAA, he talks about his efforts to educate government policymakers on the dire need to consider the entire microelectronics ecosystem. There’s power in numbers, Will says, and he sees the association’s efforts making a difference.

EPTAC Primed for SMTA International

10/19/2022 | Andy Shaughnessy, I-Connect007
I recently spoke with Leo Lambert, vice president of technology for EPTAC, about the training company’s newest classes and his plans for the upcoming SMTA International. The event, co-located with the Medical Device & Manufacturing (MD&M) Show, takes place in Minneapolis Oct. 31—Nov. 3. It’s never a dull moment in this industry and Leo takes a few minutes to talk about his company’s certification efforts, what’s planned for SMTAI, and where some of this technology is headed. Swallowing a pill that measures diagnostics? It’s a great time to be in the industry.



Copyright © 2022 I-Connect007 | IPC Publishing Group Inc. All rights reserved.