Marcy’s Musings: Continuing to Invent the Future With SEL
It’s Only Common Sense: Why Failure Is an Opportunity for Growth
Dan’s Biz Bookshelf ‘House of Huawei'
Global Supply Chains Feeling Impacts of Russia-Ukraine War
April 4, 2022 | IPCEstimated reading time: 1 minute
New data from IPC show that the electronics manufacturing supply chain is already feeling the impact of the Russia-Ukraine War.
IPC’s April Monthly Economic Update and Global Sentiment Survey found that four-fifths of manufacturers expect the war to have a negative impact on commodity prices and transportation costs, while seven in ten anticipate a negative impact on the stock of raw materials.
Among other conclusions, the IPC survey results show:
- The Material Costs Index rose to its highest level, with almost the entire panel reporting rising material costs.
- Manufacturers expect the automotive, consumer, and industrial electronics markets to be most negatively impacted by conflict, while the defense market may be positively impacted.
- Overall demand remains strong. The New Orders Index declined slightly in the last month but remains well in expansionary territory. The Backlog Index also fell slightly.
- Inventories Available to Customers (IAC Index) slipped into contractionary territory this month, suggesting inventory levels are low.
- Inventories Available to You from Your Suppliers (IAFS Index) improved marginally but remains in contractionary territory, suggesting most respondents are experiencing this.
The economic impact will be felt most severely in Europe, with the GDP forecast adjusted downward by nearly one percentage point. The GDP forecast for the United States has been lowered by two-tenths of a percentage point, to an expectation of 3.5 percent growth in 2022.
The Russia-Ukraine conflict is impacting the economy in several ways, including rising energy and commodity prices, with many hitting new all-time highs; and a decline in confidence, which results in reduced spending by consumers and investment by businesses. Bidirectional sanctions are also slowing economic growth.
“Energy and commodity prices are up significantly for three primary reasons: perceived potential shortages, increased stockpiling, and speculative buying amidst the uncertainty,” said Shawn DuBravac, IPC chief economist. “Both the European and U.S. economies are, at least for now, on solid footing and are well-positioned to weather the negative shock of the war, but growth will be hindered.”
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
"Advertising in PCB007 Magazine has been a great way to showcase our bare board testers to the right audience. The I-Connect007 team makes the process smooth and professional. We’re proud to be featured in such a trusted publication."
Klaus Koziol - atgSuggested Items
Ynvisible Inaugurates New Production Facility in Sweden
08/19/2025 | Ynvisible Interactive Inc.Ynvisible Interactive Inc. is proud to announce the successful relocation and commissioning of its roll-to-roll (R2R) high-volume production line to a new, state-of-the-art facility in Norrköping, Sweden.
Lockheed Martin Continues to Support Philippine Air Force with Delivery of Five More Black Hawk® Helicopters
08/19/2025 | Lockheed MartinLockheed Martin announced the delivery of five new Black Hawk® helicopters to the Philippine Air Force. This milestone contributes to the ongoing modernization of the country’s defense capabilities and reinforces its position as a key member of the global fleet of Black Hawk operators.
Kimball Electronics Mexico Hosts First-Ever Charity Run in Reynosa to Support Children Battling Cancer
08/19/2025 | Kimball ElectronicsKimball Electronics Mexico (KEMX) proudly organized its first-ever Charity Run at the Polideportivo of Reynosa, bringing together employees and their families for a meaningful cause.
Green Electronics Manufacturing Market to Grow $131.64 Billion by 2032, at 25.83% CAGR
08/19/2025 | Globe NewswireThe Green Electronics Manufacturing Market size was valued at USD 21.00 billion in 2024 and is expected to reach USD 131.64 billion by 2032, growing at a CAGR of 25.83% over the forecast period of 2025-2032.
50% Copper Tariffs, 100% Chip Uncertainty, and a Truce
08/19/2025 | Andy Shaughnessy, I-Connect007If you’re like me, tariffs were not on your radar screen until a few months ago, but now political rhetoric has turned to presidential action. Tariffs are front-page news with major developments coming directly from the Oval Office. These are not typical times. President Donald Trump campaigned on tariff reform, and he’s now busy revamping America’s tariff policy.