Fresh PCB Concepts: Traceability in PCB Design
The Shaughnessy Report: Back to the Future
Designers Notebook: Addressing Future Challenges for Designers
Electronics Industry Sentiment Dips in December
January 3, 2025 | IPCEstimated reading time: 1 minute
The electronics industry faced a dip in sentiment this December, as the Demand Index declined 1.8 percent according to IPC’s December Sentiment of the Global Electronics Manufacturing Supply Chain Report. It remained below 100 for the fourth consecutive month, signaling continued contraction.
Cost pressures continue to challenge operations. The Labor Costs Index climbed two percentage points from its all-time low, while the Material Costs Index dropped four percentage points. The majority of firms continue to report ongoing increases in both labor and material costs, straining operations.
In response to special questions regarding the electronics industry’s concern with proposed tariffs, trade concerns loom large for 2025. A majority (68 percent) of electronics manufacturers and suppliers express at least a moderate concern about the impact of potential tariffs on the electronics industry. A significant portion (38 percent) plan to pass the full cost increase of any tariffs on to their customers. Another 19 percent intend to share the burden, passing along past of the expense while absorbing some internally. Only a small majority (4 percent) expect to absorb the entire cost without raising prices. “These strategies suggest that most firms view transferring at least a portion of tariff-related costs to end-users as unavoidable,” said Shawn DuBravac, Ph.D., IPC chief economist and report author.
Additional survey data show:
- North American electronics manufacturers, along with those operating globally, are experiencing rising backlogs more so than European manufacturers.
- Material costs are declining more among electronics manufacturers in Europe and APAC vs. firms in North America.
- Over the next six months, electronics manufacturers expect labor and material costs to remain high, with ease of recruitment likely to remain challenging.
These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between November 15 and November 30, 2024.
Read the full report.
Share on:
Suggested Items
Electronics Industry Demand Rises in February
02/21/2025 | IPCOrders, capacity utilization, and backlogs all increased in the past month, pushing electronics industry demand higher according to IPC’s February Sentiment of the Global Electronics Manufacturing Supply Chain Report.
Kimball Electronics Mexico Volunteers Make a Difference at Julian Ernesto Zamora Elementary School
02/24/2025 | Kimball ElectronicsIn a heartwarming display of community spirit, eighteen Kimball Electronics Mexico (KEMX) employees recently dedicated their time to support the Julian Ernesto Zamora Elementary School. The volunteers divided into two groups to maximize their impact.
Altium, AWS Partner to Train Indian Engineers in Electronics Design & Cloud
02/21/2025 | AltiumAltium LLC, a global leader in software and solutions for the electronics industry, announces a collaboration with Amazon Web Services (AWS) India Private Limited* to transform tech education across India.
The Resurgence of European PCB Manufacturing: A Strategic Advantage
02/20/2025 | Jordan Labbe, ICAPE GroupThe global electronics landscape is undergoing a significant transformation. Driven by a confluence of factors, including geopolitical instability, supply chain disruptions, and a growing emphasis on agility and localized production, a renewed focus on European PCB manufacturing is emerging. This resurgence is not merely a trend; it represents a strategic advantage for companies seeking to navigate the complexities of the modern electronics market with multiple sourcing options, outside of China.
STMicroelectronics to Enable Higher-Performance Cloud Optical Interconnect in Datacenters and AI Clusters
02/20/2025 | STMicroelectronicsSTMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, is unveiling its next generation of proprietary technologies for higher-performing optical interconnect in datacenters and AI clusters.