Dan’s Biz Bookshelf: ‘The Future of Sales'
Driving Innovation: Traceability in PCB Production
It’s Only Common Sense: Price—Is That All You’ve Got?
Electronics Industry Sentiment Rebounds in August After Three-Month Decline
August 15, 2024 | IPCEstimated reading time: 1 minute
Sentiment in the electronics industry saw a modest uptick in August, though it remains below the peak observed in April 2024. The improvement was driven by stronger demand and reduced costs according to IPC’s August Sentiment of the Global Electronics Manufacturing Supply Chain Report.
Regarding current supply chain conditions, half (50 percent) of electronics manufacturers are currently experiencing rising labor costs, with 46 percent reporting increased material costs. At the same time, ease of recruitment, profit margins, and backlogs are presently declining. Over the next six months, electronics manufacturers expect labor and material costs to remain high, although relatively stable. Profit margins and backlogs are expected to rise, with recruitment challenges continuing to persist.
In response to special questions on geopolitical risks and trade policies and tariffs affecting business operations, more than two-fifths (42 percent) of respondents are very or extremely concerned about geopolitical risks and 44 percent are concerned with trade policies and tariffs, with no significant differences by geographical regions.
Additional survey data show:
- The Demand Index increased 3.3 percent in August.
- This rise was fueled by better, albeit still contracting, backlog, capacity utilization that shifted to expansion, and heightened order sentiment.
- Cost pressures eased slightly in August, with both the Labor Costs Index and the Material Costs Index dropping by one point.
- Despite this decline, both indexes remain in expansionary territory, indicating that a majority of businesses continue to face cost challenges. Notably, the Labor Costs Index hit a new low for the year.
- Industry outlook Improves in August.
- The overall industry outlook remained robust in August, although demand sentiment has cooled from earlier highs this year.
These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between July 18 and July 30, 2024. Read the full report.
Share on:
Suggested Items
Electronics Industry Demand Holds Steady Amid Tariff Turbulence
05/22/2025 | IPCElectronics manufacturers are bracing for higher costs as profit pressures deepen according to IPC’s May Sentiment of the Global Electronics Manufacturing Supply Chain Report.
Localized Automation Becomes a Tariff Storm Safe Haven, but U.S. Smart Factory Build-Out Costs Far Exceed China’s
05/09/2025 | TrendForceTrendForce’s latest “Human-Machine Technology Report” points out that although the 90-day delay on the U.S. reciprocal tariffs announced by the Trump administration in early April 2025 offers temporary relief, it has already triggered lasting shifts in global manufacturing and supply chain strategies.
Panel Driver IC Price Decline Slows in 1H25; Gold Prices, China Subsidies, and U.S.-China Tariffs Emerge as Key Variables
04/28/2025 | TrendForceTrendForce’s latest investigation finds that China’s subsidy policies and rising concerns over reciprocal tariffs are reshaping brand strategies in the panel market, indirectly influencing price trends for panel driver ICs.
STMicroelectronics Future-proofs the Development of Next-gen Cars with Innovative Memory Solution for Automotive Microcontrollers
04/22/2025 | STMicroelectronicsSTMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, has announced Stellar with xMemory, a new generation of extensible memory embedded into its Stellar series of automotive microcontrollers, that transforms the challenging process of developing software-defined vehicles (SDV) and evolving platforms for electrification.
QD-OLED to Account for 73% of OLED Monitor Shipments in 2025, Driven by Advancing Technology and New Products
04/16/2025 | TrendForceTrendForce’s latest investigations reveal that ongoing advancements in OLED displays are propelling the growth of QD-OLED monitor shipments. QD-OLED’s share of OLED monitor shipments is expected to rise from 68% in 2024 to 73% in 2025, highlighting its strong competitiveness in the high-end monitor market.