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IPC Releases December 2023 Global Sentiment of the Electronics Supply Chain Report
January 3, 2024 | IPCEstimated reading time: 1 minute
Electronics industry sentiment took a dip in December with New Order, Shipment, and Backlog Indices falling, with only Capacity Utilization Index holding steady. Despite the dip, overall demand sentiment remained in positive territory, per IPC’s December 2023 Global Sentiment of the Electronics Supply Chain Report.
And though materials costs continue to improve, labor costs remain a pain point. Three-fifths (58 percent) of electronics manufacturers say they are currently experiencing rising labor costs.
“In the December survey, IPC asked industry executives what they believed would happen to printed circuit board (PCB) demand for domestically produced PCBs if prices were to decline by 25 percent,” noted Shawn DuBravac, IPC chief economist. “On average, respondents predicted demand would rise by 16 percent. Notably, manufacturers in North America predicted demand would rise by 20 percent on average, higher than in both Europe and APAC.”
Additional survey data show:
- The New Order Index fell four points after rising five points in November 2023.
- The Labor Costs Index fell two points to 128, the lowest level recorded for this metric.
- Over the next six months, electronics manufacturers expect to see continued increase in both labor and material costs, while also anticipating a notable increase in both orders and shipments.
- Profit margins are expected to improve somewhat, while ease of recruitment and backlogs are likely to remain challenging.
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.
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