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Electronics Manufacturers Feel Impact of Coronavirus, but Majority Expect Business to Return to Normal by Summer 2020March 13, 2020 | IPC
Estimated reading time: 2 minutes
Electronics manufacturers continue to feel the impact of the coronavirus on their businesses. According to a new IPC survey on the impacts of coronavirus disruptions, companies experiencing supply disruptions report they expect five-week shipment delays on average. But a majority of electronics manufacturers and suppliers expect business operations to be “back to normal” by July 2020, and collectively, 75% of all respondents expect business to be back to normal by October 2020.
“Although manufacturers and suppliers continue to be hampered by the impacts of the coronavirus, most companies do not intend to make major cuts in capital expenditures which suggests companies anticipate demand returning,” said John Mitchell, IPC president and CEO. “The delays will certainly impact sales for segments of electronics manufacturing, with consumer electronics likely to be the most impacted sector, followed by industrial and automotive.”
Additionally, most respondents expect sales to decline in the first and second quarters of 2020 and for the entire 2020 calendar year as a whole. Roughly 56% of respondents expect sales to fall in the first quarter, 63% expect sales to decline in the second quarter, and 62% expect sales to be down for the calendar year 2020.
Other key findings include:
- Nearly 40% of respondents report they are feeling worse about the impact of COVID-19 on their businesses than they were last month
- Roughly 69% of respondents report being told by their suppliers that there will be delays in shipments due to COVID-19, and some delays are growing
- Most respondents report they are identifying alternative sources of inputs (55%) and cutting back business travel (54%). Nearly 30% of firms are encouraging teleworking where possible
- Roughly 26% of respondents expect to cut capital expenditures in 2020, while 63% report capital investment will remain the same
IPC surveyed its members—industry professionals at electronics manufacturing companies, including original equipment manufacturers (OEMs), electronics manufacturing services (EMS) companies, and PCB fabricators—for a second time between March 3 and 5, 2020, following an initial February survey. Almost half of the survey respondents represent the contract electronics manufacturing services (EMS) industry. This segment performs an estimated 25% of North American electronics manufacturing for OEMs.
IPC (www.IPC.org) is a global industry association based in Bannockburn, Illinois, dedicated to the competitive excellence and financial success of its 5,800 member-company sites that represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly, and test. As a member-driven organization and leading source for industry standards, training, market research, and public policy advocacy, IPC supports programs to meet the needs of an estimated $2 trillion global electronics industry. IPC maintains additional offices Washington, D.C.; Atlanta, Georgia; Miami, Florida; Brussels, Belgium; Bangalore and New Delhi, India; Bangkok, Thailand; and Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou, and Beijing, China.
NEOTech Launches World-Class NPI and Electronics Manufacturing Center of Excellence in Silicon Valley, Northern CA02/20/2024 | NEOTech
NEOTech, a leading provider of electronic manufacturing services (EMS), design engineering, and supply chain solutions in the high-tech industrial, medical device, and aerospace/defense markets, is excited to announce the upcoming launch of a state-of-the-art New Product Introduction (NPI) and electronics manufacturing center of excellence at its Fremont, CA facility.
It’s easy to get distracted in an election year. A constant stream of polls, primaries, and political prognostications will surely dominate the media cycle. Elections are important, but they should not distract the 118th Congress from the important work of securing our fragile supply chains and rebuilding microelectronics manufacturing capacity on our own shores.
IPC’s efforts in government relations and advocacy have been pivotal in getting legislation like the CHIPS Act passed. In February, IPC President and CEO Dr. John W. Mitchell was back in Washington, D.C., representing our industry in a meeting convened by the U.S. Department of Commerce, where he discussed workforce issues in our industry and how to ensure that our businesses have the workforce they need. In this audio interview, he reviews his concerns and solutions on workforce development.
Sentiment among electronics manufacturers remains positive, despite minor setbacks during January, according to IPC’s February Sentiment of the Global Electronics Manufacturing Supply Chain Report.
The global semiconductor manufacturing industry recovery is taking hold with electronics and IC sales increasing in the final quarter of 2023 and more growth projected for 2024, SEMI announced in its fourth quarter 2023 publication of the Semiconductor Manufacturing Monitor (SMM) report, prepared in partnership with TechInsights.