Beyond Design: The Fundamental Structure of Spectral Integrity
Elementary, Mr. Watson: High Power: When Physics Becomes Real
The Shaughnessy Report: Watt About Power Integrity?
IPC: High Material, Labor Costs Continue to Challenge the Electronics Manufacturing Industry
January 27, 2022 | IPCEstimated reading time: 1 minute
New data from IPC show that supply chain challenges remain acute, but may have peaked, while lead times remain high. IPC’s February economic update and global electronics manufacturing supply chain sentiment reports found that high material and labor costs are expected to continue for at least six months while recruiting and finding skilled talent continues to be difficult.
Among other conclusions, the global electronics manufacturing survey results show:
- Nearly nine in ten electronics manufacturers report material costs are rising, with an additional four-fifths reporting rising labor costs
- Only 13 percent of the electronics manufacturing supply chain reports inventory is growing and one in ten say inventories from their suppliers are growing
- Ease of recruitment and profit margins are currently declining, along with inventories, especially those available from suppliers
- The electronics supply chain reports orders, shipments, and capacity utilization are expanding, but weak inventory availability and higher costs for materials and labor hurts profit margins
The data on future economic outlook suggests growth is decelerating, but good growth is expected in the year ahead. After growing 6.1 percent in 2021, global growth is expected to slow to 4 percent in 2022 and close to that in 2023. In North America, growth will fall from 5.4 percent in 2021 to 3.7 percent in 2022. In 2023, growth is expected to slow further, anticipated at 2.6 percent. In Europe, growth is expected to slip this year from 5 percent to 4 percent and decline to 2.4 percent next year. In Asia, growth is expected to fall from 6.7 percent to 4.8 percent this year. Five percent growth in Asia is predicted for 2023.
“While growth slows this year, this should not necessarily be interpreted as weak growth,” said Shawn DuBravac, IPC chief economist. “Growth rates in 2022 will generally be higher than they were headed into the pandemic.”
IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain.
Share on:
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
Altus Adds Breakthrough Automated Inline Laser Depaneling System to its Line-Up
10/21/2025 | Altus GroupAltus Group, a leading distributor of capital equipment in the UK and Ireland, is introducing the LPKF CuttingMaster 2240 Cx, an advanced automated laser depaneling system designed to be fully inline, to maximise efficiency and reduce costs in high-volume PCB production.
Honeywell Expands Flight Management System Guided Visuals Offering to Europe
10/21/2025 | HoneywellHoneywel announced it is expanding its Flight Management System (FMS) Guided Visuals offering into Europe to equip pilots with greater situational awareness and safer approaches while flying into challenging airports.
Kitron Receives EUR 100 Million Defense Order
10/21/2025 | KitronKitron has received an order with a value of EUR 100 million from a customer in the Defense/Aerospace market sector.
Flex Sites in Brazil and Mexico Recognized as Manufacturing Leaders by the Association for Manufacturing Excellence
10/21/2025 | PRNewswireFlex announced that its sites in Manaus, Brazil, and our plastics operations in Guadalajara, Mexico, each received an Excellence Award from the Association for Manufacturing Excellence (AME), demonstrating global leadership in continuous improvement and operational excellence.
OE-A Business Climate Survey: Solid Growth for the Flexible and Printed Electronics Industry
10/21/2025 | OE-AFor 2026 the industry has more positive expectations, with a sales forecast of +14 percent, which has even increased slightly compared to the beginning of the year. Further encouraging signs include improved employment prospects. 30 percent of companies plan to increase their workforce in the coming months — up from 10 percent in February.