Global Sourcing Spotlight: Building a Supply Chain That Bends, Not Breaks
Smart Automation: The Journey of a Component Through an SMT Factory
Powering the Future: Why Thermal Management Defines the Future of Electronics
IPC: 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:
Testimonial
"We’re proud to call I-Connect007 a trusted partner. Their innovative approach and industry insight made our podcast collaboration a success by connecting us with the right audience and delivering real results."
Julia McCaffrey - NCAB GroupSuggested Items
Global Electronics Association and CalcuQuote, an Elisa Industriq Business, Launch Joint Supply Chain Intelligence Initiative
04/29/2026 | Global Electronics AssociationThe Global Electronics Association and CalcuQuote, Elisa Industriq today announced a partnership to deliver timely, actionable supply chain intelligence for the electronics industry.
Hon Hai, Mitsubishi Electric Exploring Automotive Equipment Business in MOU
04/29/2026 | Hon Hai Precision Industry Co., Ltd.Hon Hai Precision Industry Co. Ltd. (Foxconn) and Mitsubishi Electric Corporation have signed a Memorandum of Understanding to explore a strategic alliance through joint operation of the automotive equipment business.
SEMIEXPO Heartland 2026 Highlights Automotive Electronics and Smart Manufacturing Innovation
04/29/2026 | SEMIThe second edition of SEMIEXPO Heartland opens this week, April 29-30 at the Detroit Marriot at the Renaissance Center in Detroit, Michigan, centered around smart manufacturing, automotive electronics, and workforce development.
AI Reshaping the Memory Market; Effects Spreading Across Industries
04/29/2026 | Dr. Shawn DuBravac, Global Electronics AssociationArtificial Intelligence is often framed as a software story focused on algorithms and models. But beneath that narrative lies a more fundamental shift rooted in hardware. AI is not just changing what technology can do; it’s changing how the physical components behind it are produced, allocated, and priced. One of the clearest examples of this shift is now emerging in the global memory market.
ICTC Adds Parylene Coating Capability with New KR850L System
04/28/2026 | ICTCInterconnect Cable Technologies Corporation (ICTC), a global contract manufacturer, has added in-house parylene coating capability with the installation of a new KR850L system, expanding its value-added services and giving customers a more streamlined path from build to protection.