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
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:
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
05/15/2026 | Nolan Johnson, I-Connect007When you work in the news business, even in trade media, you can never really get that far away from it. We never want to miss something important. Chances are, even the books we take on our “vacations” end up having to do with the business. For example, my colleague Michelle Te recommended “Creativity, Inc., by Ed Catmull, a business skills study wrapped up in stories about Pixar, which I brought with me on a trip through the stunning U.S. Mountain West. Now, I’m back, and here are my recommendations for the week.
Incap India Invests in Testing and SMT Upgrades to Scale Production
05/15/2026 | IncapIncap India has completed the installation of a new flying probe test system and a full SMT (Surface-Mount Technology) line upgrade at its Tumkur factory.
Interlink Electronics Reports Q1 2026 Results
05/15/2026 | Globe NewswireRevenue for the first quarter of 2026 increased 15% to $3.07 million, compared to $2.66 million in the first quarter of 2025. The increase was driven by higher shipments of the Company’s force-sensing and printed electronics products, partially offset by lower sales of its gas‑sensor products.
New Book Explores How UV Technology Is Transforming Electronics Protection, Efficiency, and Sustainability
05/14/2026 | I-Connect007I-Connect007 proudly announces the recent release of The Printed Circuit Designer’s Guide to…™ UV Curable Conformal Coatings. Authored by respected industry technologists Brian Chislea and Cody Schoener, PhD, of Dow, Inc., this new volume offers a comprehensive exploration of UV-curable conformal coatings and their expanding role in improving the protection, performance, and sustainability of electronic assemblies.
Nortech Systems Reports Q1 Results
05/14/2026 | Globe NewswireNortech Systems Incorporated, a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical imaging, medical device, industrial, and aerospace & defense markets, reported financial results for the first quarter ended March 31, 2026.