-
- News
- Books
Featured Books
- pcb007 Magazine
Latest Issues
Current IssueDon’t Just Survive, Thrive
If we are to be relevant and prosper during these next critical decades in electronics, we must do more than survive. As an industry, we can and must thrive. In this issue, our contributors explore these concepts meant to help you take your business to the next level.
Material Matters
Materials management is nuanced, multifaceted, and requires a holistic systems approach for business success. When building high mix, low volume, and high technology, managing materials and overall cost containment are even greater challenges.
Additive Manufacturing
In this month’s issue, we explore additive manufacturing technology for the PCB fabricator: where it stands today, the true benefits, and where it seems to be headed.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - pcb007 Magazine
Materials Costs Continue to Improve but Labor Costs Remain a Pain Point for Electronics Manufacturers
December 5, 2023 | IPCEstimated reading time: 1 minute
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.
And though materials costs continue to improve, labor costs remain a pain point. Three-fifths (62 percent) of electronics manufacturers say they are currently experiencing rising labor costs.
“In this month’s survey, we asked a special question about PCB and EMS production growth,” noted Shawn DuBravac IPC chief economist. “Electronics manufacturers believe the U.S. should adopt strong goals for production growth.” For the PCB sector, roughly 85 percent of respondents reported the five-year goal should be above current levels and the average suggested goal was 9.3 percent of global production. For the EMS sector, roughly 70 percent of respondents indicated a five-year goal above current levels. On average, respondents indicated the EMS industry should target 12.9 percent of global production by 2028 and 17.4 percent of production by 2033.
Additional survey data show:
- The New Order Index rose five points to 105 after hitting the lowest level for this index.
- The Materials Cost Index fell to another new low, dropping four points to 118. The Labor Costs Index rose one point to 130 after declining for two consecutive months.
- Shipments, orders, capacity utilization, backlogs and profit margins are expected to rise over the next six months, while all other key business indicators are expected to remain relatively stable.
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
Mycronic Posts Interim Report January–June 2024
07/12/2024 | MycronicNet sales increased 23 percent to SEK 1,527 (1,245) million. Also based on constant exchange rates, net sales increased 23 percent
VDMA Robotics and Automation Halves Growth Forecast – Positive Signs from International Business
06/17/2024 | VDMARobotics and automation in Germany will be mostly driven by foreign demand in a subdued domestic economy: The industry is forecasting an overall increase in sales of 2 percent to 16.5 billion euros in 2024.
North American EMS Industry Down 2.1% in April
05/28/2024 | IPCIPC announced the April 2024 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.42.
IPC Releases May 2024 Global Sentiment of the Electronics Supply Chain Report
05/16/2024 | IPCSentiment among electronics manufacturers fell this month, after hitting a new high in April. Despite the decline, sentiment remains historically high according to IPC’s May Sentiment of the Global Electronics Manufacturing Supply Chain Report.
Electronics Industry Sentiment Rose in April, Hitting New High
05/02/2024 | IPCApril 2024 marked the third consecutive month of sentiment growth among electronics manufacturers. When asked if they expected labor costs for hourly workers to rise over the next month, manufacturers in the United States, Mexico, and Europe predicted a five percent increase, while manufacturers in Asia predicted a slightly lower four percent increase.