Cost Pressures Receding as Industry Expects Some Sector Growth in 2023
May 2, 2023 | IPCEstimated reading time: 1 minute
Per IPC’s April 2023 Global Sentiment of the Electronics Supply Chain Report, last month delivered a mixed bag of industry sentiment: cost pressures are receding; industry demand appears to be slowing; and industry expects growth in some sectors.
Survey results show:
- 54 percent of respondents reported that labor and material costs are rising, but the number of companies experiencing rising costs continues to decline.
- The Orders Index slipped to 105. While this is still in expansionary territory, it is the lowest it has been since the start of the survey.
- Industry believes the military sector will grow 16 percent on average this year, followed by the aerospace sector and the communications sector which are both expected to grow by roughly 11 percent. The medical sector is expected to rise 10 percent.
- The automotive sector and industrial electronics sector are both expected to rise 5.6 percent. The consumer electronics sector is expected to decline 3 percent and the computer sector is expected to decline 7 percent in 2023.
“Over the next six months, electronics manufacturers expect to see continued increase in both labor and material costs,” said Shawn DuBravac, IPC chief economist. “Meanwhile, backlogs, ease of recruitment, and profit margins are expected to contract.”
For the report, IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain. View full report.
Suggested Items
Real Time with… IPC APEX EXPO 2024: Magnalytix's Services and Trends in the Electronics Industry
05/10/2024 | Real Time with...IPC APEX EXPOMike Bixenman, president of Magnalytix, explains Magnalytix's services, including third-party validation, test boards, electrical testing, and comprehensive reports. He also discusses emerging trends such as power electronics and reliability. Standards and design improvements also form part of this conversation.
Podcast Review: On the Line with… Designing for Reality
05/09/2024 | Duane Benson, Positive Edge LLCAs a technologist, if I were forced to come up with just one recurring theme that I might call a professional “nemesis,” it would be the difference between theory and reality. A lot of technology we have at our disposal works well in theory but falls short when reality hits. That’s not the only reason I chose to listen to and review On the Line with… Designing for Reality, featuring a series of conversations with ASC Sunstone’s Matt Stevenson, but it certainly helped that the title caught my eye.
AIM Solder Signs Shinil Fl Ltd. as New Distributor for Korea
05/08/2024 | AIM SolderAIM Solder, a leading global manufacturer of solder assembly materials for the electronics industry, is pleased to announce a new distribution partnership with Shinil Fl Ltd., a prominent supplier of technological solutions in the SMT and semiconductor sectors.
KYZEN’s Adam Klett to Keynote at SMTA Electronics in Harsh Environments Conference
05/07/2024 | KYZEN'KYZEN, the global leader in innovative environmentally friendly cleaning chemistries, announced today that KYZEN’s Director of Science, Adam Klett, PhD will present as a keynote speaker at the SMTA Electronics in Harsh Environments Conference. The event is scheduled to take place May 14-16, 2024 at the Technical University of Denmark in Copenhagen, Denmark.
Altus Equips SSTL with Advanced Cleaning Technology for Electronics
05/07/2024 | Altus GroupAltus Group, a leading supplier of capital equipment for the electronics manufacturing industry, has announced the successful installation of an advanced PCBA cleaning system at Surrey Satellite Technology Limited (SSTL).