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IPC Releases May 2024 Global Sentiment of the Electronics Supply Chain Report
May 16, 2024 | IPCEstimated reading time: 1 minute
Sentiment 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.
When asked about PCB and EMS sales revenue growth/decline, electronics manufacturers more likely expect PCB and EMS sales revenue to increase in the United States in 2024 when compared to other regions. On average, electronics manufacturers anticipating a 2024 increase in either PCB or EMS sales revenue expect the percentage to range from 8 percent to 11 percent across all regions, while those anticipating a decrease in either PCB or EMS sales revenue believe the range will be between -8 percent and -12 percent year-over-year.
Regarding outlook for next six months, electronics manufacturers expect labor costs to come down slightly, while material costs are expected to remain relatively stable. Although ease of recruitment is expected to remain challenging, profit margins are predicted to improve considerably over the next six months, along with capacity utilization, shipments, and orders.
Additional survey data show:
- Cost pressures rose this month, after a record low last month: The Labor Costs Index rose three points this month and the Material Costs Index increased four points.
- Industry demand eased this month: The Demand Index slipped three percent this month. Both the New Orders Index and the Shipments Index fell five points this month.
- Orders, shipments, profit margins, and capacity utilization are expected to rise over the next six months, while labor costs are expected to decline.
- Orders are expected to rise more so among manufacturers in APAC when compared to those in North America and those operating globally.
These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between April 15 and April 30, 2024.
Read the full report here.
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