Subdued Electronics Industry Sentiment Continues in November
November 25, 2024 | IPCEstimated reading time: 1 minute
The electronics industry faced a mixed sentiment in November, with modest improvements in demand overshadowed by rising cost pressures according to IPC’s November Sentiment of the Global Electronics Manufacturing Supply Chain Report.
The Demand Index rose 2.6 percent in November but remains subdued for the third consecutive month. The Backlog Index, already in contraction, fell an additional two points to reach a new record low. Capacity Utilization returned to expansionary territory, while the New Orders Index improved slightly but stayed in contraction for the third straight month. The Shipment Index rose three points, signaling some positive movement.
In response to special questions regarding the electronics industry workforce’s basic understanding of AI skills, 69 percent of respondents agreed that a broad understanding of AI will be essential for the workforce, yet only 11 percent of employees have received AI training to date, indicating a significant gap between perceived importance and current investment in skills development.
According to Shawn DuBravac, Ph.D., IPC chief economist and report author, industry outlook remains positive this month despite cost concerns. “Industry outlook remains optimistic, with expectations for demand improving. However, concerns over rising costs weigh on confidence as firms brace for continued pressures,” stated Dr. DuBravac.
Additional survey data show:
- Cost pressures intensify -- The Labor Costs Index remained flat at its all-time low. However, the Material Costs Index climbed to its highest level since June 2024, highlighting renewed cost pressures. A majority of firms continue to report rising material and labor costs, adding strain to operations.
- Outlook for next six months -- Over the next six months, electronics manufacturers expect labor and material costs to remain high, with ease of recruitment likely to remain challenging.
- Regional differences in outlook -- Nearly three-fifths (57 percent) of electronics manufacturers in APAC, along with half (48 percent) of North American manufacturers, expect capacity utilization to increase over the next six months, which is significantly higher than the 8 percent increase expected among those operating globally.
These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between September 16 and September 30, 2024.
Read the full report.
Suggested Items
Delta Electronics, Cal-Comp Strengthen Partnership to Drive Innovation in Industrial Automation
12/25/2024 | Delta ElectronicsDelta Electronics (Thailand) Public Company Limited, a global leader in power management and IoT-based smart green solutions, and Cal-Comp Electronics (Thailand) Public Company Limited (SET Ticker: CCET), a leading industry 4.0+ electronics manufacturing services (EMS) provider, have signed a Memorandum of Understanding (MOU) to deepen their collaboration in industrial automation.
Market-Comms, VNU Asia Pacific Unite to Drive THECA 2025 as a PCB Industry Game-Changer
12/23/2024 | EINPresswire.comThailand Electronics Circuit Asia (THECA) 2025 has officially announced its event partnership with Market-Comms Co., Ltd. (MCOMMS), No.1 local public relations firm, and VNU Asia Pacific, the designated show manager for the event.
SMT Mounter Market Size Projected to Reach $5.06 Billion by 2030
12/23/2024 | openPRAccording to the new market research report "Global SMT (Surface-mount Technology) Mounter Market Report 2024-2030", published by QYResearch, the global SMT (Surface-mount Technology) Mounter market size is projected to reach USD 5.06 billion by 2030, at a CAGR of 4.7% during the forecast period.
BIG, Delta Pioneer the First Low-Carbon Nitrogen in Thailand's Electronics Industry
12/23/2024 | Delta ElectronicsBIG, a climate technology company, and Delta Electronics (Thailand) Public Company Limited, a global leader in power management and IoT-based smart green solutions today announced a strategic partnership with BIG to advance the decarbonization of Thailand's electronics industry.
Flexible Printed Circuit Boards Market Expected to Reach $51.05 Billion by 2031 at a CAGR of 11.2%
12/20/2024 | EINPresswire.comA new report by Coherent Market Insights forecasts the global flexible printed circuit boards (FPCB) market to reach $51.05 billion by 2031, reflecting a strong compound annual growth rate (CAGR) of 11.2% from 2024.