Dan's Biz Bookshelf: 'Revenge of the Tipping Point'
Marcy's Musings: Engineering Economics
Punching Out: Should You Sell Your Company to a Private Equity Firm?
Industry Continues to Face High Costs; Data Suggests Mixed Cost Pressures
December 7, 2022 | IPCEstimated reading time: 1 minute
According to IPC’s November Sentiment of the Global Electronics Manufacturing Supply Chain report, 80% of electronics manufacturers are experiencing rising material costs, while 77% indicate that labor costs are on the rise. At the same time, ease of recruitment, profit margins, and inventory from suppliers are presently declining.
“Over the next six months, manufacturers expect to see increases in both labor and material costs, although somewhat to a lesser extent,” said Shawn DuBravac, IPC chief economist. “While supplier inventory is expected to improve, ease of recruiting and finding skilled talent and profit margins are likely to remain challenging.”
Despite murky global manufacturing sentiment, the manufacturing sector continues to hold up well, according to IPC’s November Economic Outlook report. The slowdown has brought demand and production back into balance and enabled many manufacturers to focus on backlogs.
“Though we have seen some growth, we continue to remain somewhat cautious about the economic outlook,” added DuBravac. “Consumers continue to shift away from purchasing durable goods and return to services, and this trend is likely to continue.”
Additional data from the November economic outlook report shows that there continues to be significant economic uncertainty and this will continue to exert downward pressure on economic activity of both consumers and businesses. The ongoing slowdown will continue in the coming quarters. “We are looking closely at any change in the rate of that slowdown,” DuBravac added.
View the full reports:
Share on:
Suggested Items
IPC Celebrates National Apprenticeship Week with a Focus on Electronics Manufacturing Excellence
11/19/2024 | IPCIPC, a leading global electronics industry association and source for industry standards, training and advocacy, is proud to announce its participation in National Apprenticeship Week, scheduled for November 17-23, 2024.
IPC Introduces First Standard for In-Mold Electronics
11/18/2024 | IPCIPC announces the release of IPC-8401, Guidelines for In-Mold Electronics. IPC-8401 addresses in-mold electronics (IME) technology, providing industry consensus on guidelines for manufacturing processes, part structures, material selection, and production test methods to integrate printed electronics and components into 3D smart structures.
Disruptive Innovation and Generative AI Inventor, Kevin Surace, to Keynote IPC APEX EXPO 2025
11/15/2024 | IPCEach year, IPC APEX EXPO features industry’s most dynamic, innovative minds to deliver keynote presentations that are both educational and entertaining. IPC APEX EXPO 2025 will feature Kevin Surace, an internationally renowned futurist and generative artificial intelligence (AI) innovator.
Keysight Providing Software to Enable Researchers through the Microelectronics Commons
11/15/2024 | Keysight TechnologiesKeysight Technologies, Inc. announced it has reached an agreement to provide its electronic design automation (EDA) software to six of the eight hubs participating in the Microelectronics Commons (Commons).
Neways Partners with MilDef for the Production of Advanced Electronic Components
11/15/2024 | NewaysNeways, the global innovator in mission-critical technology for leading semicon, connectivity and smart mobility companies, announces it has entered into a partnership with MilDef, the developer of world-leading tactical IT solutions, products and systems, made to perform in the toughest conditions.