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IPC: Product Demand Weakens This Month, Though Operations Remain Generally HealthySeptember 28, 2023 | IPC
Estimated reading time: 1 minute
Though product demand weakened this month with Orders and Backlog Indexes slipping, overall electronics industry operations remain healthy per IPC’s September 2023 Global Sentiment of the Electronics Supply Chain Report.
“Both inventory indexes remain strong, suggesting inventory is available from suppliers and inventory is available to customers,” said Shawn DuBravac IPC chief economist. “We continue to hear of long lead times for some parts but overall inventories appear well balanced.”
Additional survey data show:
- Cost environment continues to improve: The Labor Costs Index and the Material Costs Index both fell this month. Both are near the lower part of their ranges and should continue to improve in the coming months.
- Nearly two-thirds (63%) of electronics manufacturers are currently experiencing rising labor costs, with more half (52%) reporting rising material costs.
- The Shipments Index slipped four points this month but remains in expansionary territory. Manufacturers expect shipments to weaken further in the coming months.
- Per a special question asked about cutting hours in order to keep workers, roughly 22 percent of electronics manufacturers report they are cutting hours to keep workers even though they are facing slower demand.
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.
VDL Groep has strengthened its position in the high-quality electronics market. The industrial family business with its head office in Eindhoven has acquired Rena Electronica from Zundert.
HANZA AB has signed an agreement to acquire all shares in Orbit One AB, a Swedish company that offers contract manufacturing of electronics and electromechanics. Orbit One has annual sales of approximately SEK 1.1 billion with an operating profit (EBITA) of approximately SEK 70 million.
Materials Costs Continue to Improve but Labor Costs Remain a Pain Point for Electronics Manufacturers12/05/2023 | IPC
Electronics industry sentiment improved during November with demand sentiment also taking a solid step up over the last 30 days per IPC’s November 2023 Global Sentiment of the Electronics Supply Chain Report.
About 200 kilometers (125 miles) north of Mexico City lies Queretaro, an area rich in history, with stone streets and public squares, and which twice has been the country’s capital. But it’s also quickly becoming a global capital of electronics manufacturing, especially aeronautics, and was the location for the first IPC Day Mexico this past June.
Seven microelectronics firms received nearly $10 million in combined funding to commercialize technologies of interest to the U.S. military services as winners of the Defense Business Accelerator (DBX) Microelectronics Challenge. This groundbreaking initiative is funded by the Department of Defense (DoD) and led by the U.S. Partnership for Assured Electronics (USPAE).