08/15/2024 | Press release | Distributed by Public on 08/15/2024 09:02
Sentiment in the electronics industry saw a modest uptick in August, though it remains below the peak observed in April 2024. The improvement was driven by stronger demand and reduced costs according to IPC's August Sentiment of the Global Electronics Manufacturing Supply Chain Report.
Regarding current supply chain conditions, half (50 percent) of electronics manufacturers are currently experiencing rising labor costs, with 46 percent reporting increased material costs. At the same time, ease of recruitment, profit margins, and backlogs are presently declining. Over the next six months, electronics manufacturers expect labor and material costs to remain high, although relatively stable. Profit margins and backlogs are expected to rise, with recruitment challenges continuing to persist.
In response to special questions on geopolitical risks and trade policies and tariffs affecting business operations, more than two-fifths (42 percent) of respondents are very or extremely concerned about geopolitical risks and 44 percent are concerned with trade policies and tariffs, with no significant differences by geographical regions.
Additional survey data show:
These results are based upon the findings of IPC's Current State of Electronics Manufacturing Survey, fielded between July 18 and July 30, 2024.
Read the full report.