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IPC Releases July Global Sentiment of the Electronics Supply Chain Report
August 1, 2023 | IPCEstimated reading time: 1 minute
Current conditions have receded with Shipments Index, Orders Index, and Capacity Utilization Index all weakening in July, but at the same time, the outlook for shipments, orders, and utilization all improved per IPC’s July 2023 Global Sentiment of the Electronics Supply Chain Report.
In addition, cost pressures continue to decline and the outlook for inventory availability continues to improve. “The majority of survey respondents are still reporting that labor costs and material costs are rising, but the number of companies experiencing rising costs declined again this month. The outlook for costs also improved this month,” said Shawn DuBravac, IPC chief economist. “Both outlook indexes looking at inventory availability improved this month,” DuBravac added.”
Per special questions asked about EMS market share, industry expects Mexico’s EMS market share to grow in the coming years. Survey data show:
- Over the next 10 years, manufacturers expect North American EMS market share in the USA to steadily decline, while increasing in Mexico and remaining relatively stable in Canada.
- Industry executives expect the global EMS share in North America will increase somewhat over the next 10 years. It is expected to increase significantly in Mexico, while declining across other markets.
- Of interest, North American manufacturers anticipate a significantly higher 10-year increase in global EMS share in the North American market, with European manufacturers expecting a significantly higher 10-year increase in other markets.
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.
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