The Marketing Minute: If Your Marketing Budget Gets Cut in Half, Then What?
Punching Out: How Are the Big Boys in Electronics Doing?
It’s Only Common Sense: Complexity Is the Enemy of Profit
IPC Pulse Survey Shows Positive but Moderating Industry Outlook
September 30, 2019 | IPCEstimated reading time: 2 minutes
Third-quarter 2019 results from IPC’s Pulse of the Electronics Industry global data service show that the global electronics industry continues to thrive in a positive business environment and still predicts continued growth over the next year. The results are somewhat less optimistic than in earlier quarters this year and there are some sharp contrasts between regions.
The industry’s view of the current direction of the business environment worldwide remained positive this quarter but just barely. The composite score on the current state fell to its lowest level since the Pulse survey began in mid-2017.
Most participating companies reported the current direction for sales, orders and order backlogs as moving in a positive direction but with less strength than in previous quarters. Meanwhile, while rising labor and material costs and recruiting challenges continued to affect the business environment negatively. Yet, some regional results deviated from that pattern this quarter. Ease of recruiting, which has typically had a negative impact on the current business environment, is now having a net positive impact according to participating companies in Asia. The direction of profit margins has been positive for most segments this year, but it shifted to a mildly negative factor this quarter for companies in the Americas, indicating that margins are shrinking.
The companies’ average outlook for the next six months remains solidly positive on a global level but has weakened since the beginning of 2019. Europe is the only region reporting a net negative composite score on the industry’s six-month outlook. In the six-month outlook for Asia, only exports were rated as a negative driver this quarter, due to the trade war between China and the U.S.
The 12-month business outlook as of third quarter 2019 remains strong globally, with 87 percent of responding companies indicating a positive outlook. Only Europe reported a mixed outlook, reflecting the current uncertainty about the impact of Brexit and the region’s slowing economic growth.
Respondents comment every quarter on the trends or conditions that are driving or limiting their business growth and where they are seeing significant cost increases. Based on this quarter’s comments, economic and market demand growth is the main driver of their sales growth. Of the conditions limiting growth, the number-one driver is workforce issues, followed closely by tariffs and regulatory issues. The component shortage still gets a few mentions, but it appears to have eased. The industry’s biggest concern about rising costs is in recruiting, training and labor costs, followed closely by tariffs and trade-related costs.
The fourth-quarter 2019 survey will be online October 1 with a deadline of October 18. The confidential survey is brief and easy to answer for company executives with broad knowledge of their companies’ performance. All eligible participants who complete the survey by the deadline will receive the report on the findings. More information is at www.ipc.org/IndustryData.
Share on:
Testimonial
"The I-Connect007 team is outstanding—kind, responsive, and a true marketing partner. Their design team created fresh, eye-catching ads, and their editorial support polished our content to let our brand shine. Thank you all! "
Sweeney Ng - CEE PCBSuggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
05/08/2026 | Marcy LaRont, I-Connect007This week, I’ve selected some outstanding interviews that you’ll want to take note of. First, is a roundtable discussion featuring three dynamic industry cybersecurity experts. Please watch this important discussion that affects us all. Following that, I spotlight the IPC-2581 Consortium, which explains why IPC-2581 is the standard to replace Gerber data for manufacturing. Next, I am including my interview with PCBAA and AAM, who collaborated to release a short documentary on U.S. PCB manufacturing.
Global Electronics Association to Testify at the Office of the U.S. Trade Representative Panel on Section 301 Structural Excess Capacity
05/08/2026 | Global Electronics AssociationChris Mitchell, Vice President for Global Government Relations at the Global Electronics Association, will testify before the Office of the U.S. Trade Representative (USTR) Panel on Section 301 Structural Excess Capacity on Friday, May 8.
Hall of Fame Spotlight Series: Highlighting Karen McConnell
05/07/2026 | Dan Feinberg, I-Connect007In 2021, Karen McConnell was awarded the Raymond E. Pritchard Hall of Fame award in recognition of her contributions to the Association and the electronics industry. As a senior staff member and CAD/CAM engineer at Northrop Grumman Enterprise Services, her primary responsibility was to develop a common, shared EDM (Electronic Document Management) library to support the electrical and PCB design tool initiatives across Northrop Grumman Mission Systems.
A Necessary Shift From Gerber to IPC-2581
05/07/2026 | Tracy Riggan, Global Electronics AssociationIPC-2581 is an open, vendor-neutral data exchange standard developed by the Global Electronics Association to streamline the exchange of PCB design information across fabrication, assembly, and test. It replaces multiple legacy formats—including industry standards, Gerber, and ODB++—with a single, comprehensive, XML-based dataset that captures all manufacturing details.
TTC-LLC and TTCI: Smarter Training, Stronger Test at PCB East 2026
04/27/2026 | The Test Connection Inc.The Training Connection LLC (TTC-LLC) and The Test Connection, Inc. (TTCI) will be exhibiting together at PCB East 2026, taking place April 28–May 1 at the DCU Convention Center in Worcester, Massachusetts. Attendees can find both teams at Booth #103 during the main exhibition day on Wednesday, April 29.