Flexible Thinking: Integrated Passive Devices—Design Solutions With Many Benefits
Happy’s Tech Talk #29: Bend-to-Install Semi-flex FR-4
Connect the Dots: Five Best Practices for Designing Flex and Rigid-flex PCBsIPC: Electronics Industry Sentiment Drops Sharply in September Following Brief August Rebound
October 1, 2024 | IPCEstimated reading time: 1 minute
Industry sentiment in the electronics sector declined significantly in September due to rising cost concerns and weakening demand according to IPC’s September Sentiment of the Global Electronics Manufacturing Supply Chain Report.
The Demand Index fell by 7.3 percent in September, with all four components of demand decreasing. The Backlog Index, already in contraction, dropped another three points, and Capacity Utilization slipped to neutral. Both the Shipment Index and New Orders Index entered contractionary territory, setting new all-time lows, indicating declining order and shipment volumes for the majority of respondents. While overall industry sentiment cooled from earlier highs, the electronics sector's outlook remained positive.
In response to special questions on the probability of a recession occurring in during the remainder of 2024 and into 2025, a minority of electronics manufacturers still see a recession as possible in 2024, a sentiment that has remained largely unchanged since February. However, manufacturers in the APAC region have grown more pessimistic about the economic outlook.
Additional survey data show:
- Three-fifths (59%) of electronics manufacturers are currently experiencing rising labor costs, with two-fifths (43%) reporting increased material costs. At the same time, profit margins, ease of recruitment, backlogs, shipments, and orders are presently declining.
- Over the next six months, electronics manufacturers expect both labor and material costs to remain high, while ease of recruitment and profit margins are likely to remain challenging.
- Orders, shipments, capacity utilization, backlogs, and profit margins are expected to rise over the next six months, while labor and material costs are expected to decline.
These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between August 16 and August 31, 2024.
Read the full report.
Share on:
Suggested Items
MacroFab Launches FabIQ to Revolutionize Electronics Manufacturing
10/02/2024 | PRNewswireMacroFab Inc., the operator of North America's largest technology platform and marketplace for electronics manufacturing, has announced the launch of FabIQ, an industry-first intelligence technology that removes the guesswork and legwork associated with pricing printed circuit board assembly.
CHIPS Act Falls Short Without Focus on Workforce Training
10/02/2024 | David Hernandez, VP of Education, IPCBillions of dollars of funding from the CHIPS and Science Act are going to the construction of new semiconductor fabrication plants (“fabs”). However, that investment will fail to meet its full potential unless we also focus on building something equally important: talent pipelines for the entire electronics manufacturing ecosystem.
GEN3 Announces Strategic Partnership with Zestron to Enhance UK Electronics Manufacturing Reliability
10/01/2024 | Gen3GEN3, a leading British manufacturer of specialised test, measurement & production equipment for the electronics industry, has entered into a strategic partnership with Zestron, a renowned expert in electronic assembly quality and reliability.
Kimball Electronics Announces Annual Meeting of Share Owners
09/27/2024 | BUSINESS WIREKimball Electronics, Inc. announced the Company will hold its Annual Meeting of Share Owners on Friday, November 15, 2024, at 10:00 a.m. (EST).
American Standard Circuits to Exhibit at SMTA International Conference and Expo
09/26/2024 | American Standard CircuitsAmerican Standard Sunstone Circuits will be exhibiting at SMTA International 2024, Oct. 22-24, at the Donald E. Stephens Convention Center in Rosemont, Illinois.