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Global Political Turmoil Creating Uncertainties for the Industry
November 20, 2019 | Chris Mitchell, IPC Vice President of Global Government RelationsEstimated reading time: 1 minute
One of the most fundamental truths about human beings generally, and business specifically, is that we crave certainty. When we are optimistic about growth and the business environment, we are more likely to invest in people, equipment, and innovation. But when uncertainty rears its head, we become cautious and postpone our dreams.
From where I sit, representing the interests of electronics manufacturers and related companies around the world, I regret to say that the future of our industry—while bright overall—is fraught with uncertainties, from trade policy disputes to government leadership turnovers and economic and social megatrends. IPC is working with all governments and parties to overcome these uncertainties, but there is a lot to tackle.
The Future of Major Trade Policies in Doubt
Let’s start with the future of international trade. The electronics industry is characterized by a complex, integrated web of supply chain relationships that create jobs in all regions of the world. About 80% of IPC members are small- and medium-sized businesses with specialized niches and relatively thin profit margins.
But while electronic products and services are at the heart of almost all key industries—from defense and aerospace to automotive, information and communication technologies (ICT), manufacturing, retail, healthcare, and more—many policymakers don’t seem to realize the importance of keeping those supply chains open.
To read this entire article, which appeared in the October 2019 issue of SMT007 Magazine, click here.
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