IPC releases February 2024 Global Sentiment of the Electronics Supply Chain Report
February 16, 2024 | IPCEstimated reading time: 1 minute
Sentiment among electronics manufacturers remains positive, despite minor setbacks during January, according to IPC’s February Sentiment of the Global Electronics Manufacturing Supply Chain Report.
When asked about expectations for a recession in 2024 and 2025, industry executives believe there is a 39 percent chance of a recession in 2024 and a 34 percent chance in 2025. Notably, manufacturers in Europe report a 2024 recession would most likely begin in Q1 while those in North America believe it would likely begin in Q2.
Sixty-six percent of electronics manufacturers are currently experiencing rising labor costs, while more than 44 percent report rising material costs. At the same time, ease of recruitment, backlogs, and profit margins remain in contractionary territory.
“While the Materials Cost Index fell one point, the Labor Costs Index rose by five,” said Shawn DuBravac, IPC chief economist. “That’s the highest it’s been since August 2023.
"Electronics industry leaders foresee a 39 percent probability of a recession this year, underscoring the critical need for strategic foresight and agility,” added DuBravac. “The geographical nuances in recession expectations between Europe and North America further illustrate the complex global economic interplay affecting the electronics industry."
Additional survey data show:
- Demand remains in expansionary territory, despite slipping this month and falling one point from 103 to 102.
- The Capacity Utilization Index fell two points, while the Shipments Index dropped five points. The decline in shipments could be weather-related.
- The New Orders Index rose three points to 105, the highest level since November 2023.
- While the current view of demand weakened somewhat, the Outlook for demand improved. The increase was led by strong rises in the Shipments Outlook Index which increased by six points and the Backlogs Outlook Index which rose by five points and moved into expansionary territory.
These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between January 15 and January 31, 2024.
Suggested Items
KYZEN to Spotlight Solvent Solutions for Medical Device Cleaning at MD&M Minneapolis
10/04/2024 | KYZEN'KYZEN, the global leader in innovative environmentally responsible cleaning chemistries, will exhibit at MD&M Minneapolis 2024, scheduled to take place Oct. 16-17, 2024 at the Minneapolis Convention Center.
Smart Home Market on Track for Rebound Thanks to Emerging Regions
10/03/2024 | IDCGlobal shipments of smart home devices are set to stall once again in 2024 as volume remains flat with 0.6% growth to 892.3 million devices, according to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker.
Yamaha Motor Completes Expansion and Renovation at Hamamatsu Robotics Office
10/02/2024 | Yamaha Motor Co., Ltd.Yamaha Robotics announced that the Company has held a ceremony to celebrate the completion of renovation and expansion work at the Hamamatsu Robotics Office, which develops, manufactures, and sells surface mounters and industrial robots, as well as the 40th anniversary of the Robotics Business, which started in 1984 as the IM Division.
Creative Materials Presents Reliable Solutions: 110-19(SD) and 129-50LS-2, Offering Alternatives to Legacy Materials
10/02/2024 | Creative Materials, Inc.Creative Materials Inc., a leader in the development and manufacturing of advanced materials proudly announces the launch of two products,
Real Time with… SMTA Guadalajara 2024: Viscom's Approach to Automation
10/02/2024 | Real Time with... SMTA GuadalajaraNolan Johnson speaks with Juan Briceno, Vice President of Sales for Viscom, about the current state of the Mexican electronics market. Briceno reports that while the automotive and contract manufacturing sectors in Mexico remain strong, the industry as a whole is preparing for more purchases in late 2024 and early 2025. Briceno emphasizes the growing need for automated solutions and AI technologies to address the challenge of finding qualified personnel in the Americas.