Global Citizenship: The Global Push for Digital Inclusion
Knocking Down the Bone Pile: Addressing End-of-life Component Solderability Issues, Part 4
The Knowledge Base: A Conference for Cleaning and Coating of Mission-critical Electronics
Rising Material, Labor Costs Continue to Plague Global Electronics Manufacturing Supply Chain
December 31, 2021 | IPCEstimated reading time: 1 minute
IPC’s January 2022 global electronics manufacturing supply chain sentiment report found that materials and labor costs continue to be the largest issue facing the electronics supply chain, with nine in 10 electronics manufacturers reporting rising materials costs and more than three-fourths reporting rising labor costs. Though order flows continue to be strong, and both capacity utilization and shipments are expanding, survey respondents reported growing backlogs and shrinking profit margins.
Among other conclusions, the survey results found that:
- Material costs are currently rising at a higher rate in North American than APAC: 96% of North American manufacturers report rising material costs, a significantly lower 74% report material costs are up in APAC.
- Inventory available to customers is declining at a higher rate in North America compared to both Europe and APAC: 49% of firms in North America reported declining inventory, while only 21% of firms in Europe and 16% of firms in APAC are experiencing declines.
- Manufacturers indicate the current semiconductor shortage is driving longer lead times, delayed deliveries, declining orders, increased inventories, rising costs and lost production. Combined, these impacts are affecting manufacturers’ ability to complete orders, ultimately reducing profitability.
“Manufacturers expect to see continued increase in material and labor costs,” said IPC Chief Economist and report author Shawn DuBravac. “Escalating costs are in turn compressing profit margins. Ease of recruiting and finding skilled talent is expected to remain challenging and inventory levels are expected to remain tight for at least the next six months.”
IPC surveyed hundreds of companies from around the world, including a wide range of company sized and representing the full electronics manufacturing value chain. Survey respondents were from North America (44%), Asia (20%) and Europe (17%).
Share on:
Suggested Items
The Wire Association International’s Wire Expo to Co-Locate with the Electrical Wire Processing Technology Expo (EWPTE)
07/16/2025 | Global Electronics AssociationThe Wire Association International Inc. (WAI) announces plans to co-locate its biennial Wire Expo with the Wiring Harness Manufacturer’s Association (WHMA)/Global Electronics Association’s Electrical Wire Processing Technology Expo (EWPTE) May 6-7, 2026. The two shows will co-locate at the Baird Center, Milwaukee, Wisconsin, USA.
Amtech Launches BOMsense Free Online Tool to Help Manufacturers Reduce Tariff Risk and BOM Surprises
07/16/2025 | AmtechAmtech Electrocircuits, a leading provider of manufacturing solutions, is proud to announce the release of BOMsense™, a free, Web-based tool that gives engineers, buyers, and program managers immediate insight into their electronics Bill of Materials (BOMs) to proactively manage tariff exposure, HTS classification, and cost risks.
ESD Alliance Reports Electronic System Design Industry Posts $5.1 Billion in Revenue in Q1 2025
07/16/2025 | SEMIElectronic System Design (ESD) industry revenue increased 12.8% to $5,098.3 million in the first quarter of 2025 from the $4,521.6 million registered in the first quarter of 2024, the ESD Alliance, a SEMI Technology Community, announced in its latest Electronic Design Market Data (EDMD) report.
Hon Hai Scholarship Whale Exchange and Growth Camp Empowers Winners and Helps Build Connections
07/16/2025 | Hon Hai Technology GroupThe "2025 Hon Hai Whale Scholarship Exchange and Growth Camp" hosted by the Hon Hai Education Foundation came to a successful conclusion on July 12.
TRI to Exhibit at SMTA Queretaro Expo 2025
07/16/2025 | TRITest Research, Inc. (TRI), the leading provider of test and inspection systems for the electronics manufacturing industry, is pleased to announce plans to exhibit at the SMTA Querétaro Expo 2025, scheduled to take place on July 24, 2025, at the Querétaro Centro de Congresos y Teatro Metropolitano.