Dan’s Biz Bookshelf: ‘Elevate: Push Beyond Your Limits'
The Marketing Minute: The First Step to More Sales—Marketing
It’s Only Common Sense: Customer Service Is Sales in Disguise
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
TT Electronics Secures Multi-Million-Pound Defense Contract with Ultra PCS
07/18/2025 | TT ElectronicsTT Electronics, a leading provider of global manufacturing solutions and engineered technologies, announced that it has been awarded a significant new contract with long-standing customer Ultra PCS Ltd (Ultra Precision Control Systems).
Tata Electronics, Bosch Sign MoU for Strategic Collaboration in Electronics and Semiconductor Manufacturing
07/18/2025 | Tata ElectronicsTata Electronics, a leading player in the Indian electronics and semiconductor manufacturing sector, and Robert Bosch GmbH, a leading global supplier of technology and services, announced that they have signed a Memorandum of Understanding (MoU) to collaborate on several key areas within the electronics and semiconductor industries.
Microchip Enters into Partnership Agreement with Delta Electronics on Silicon Carbide Solutions
07/18/2025 | Globe NewswireThe growth of artificial intelligence (AI) and the electrification of everything are driving an ever-increasing demand for higher levels of power efficiency and reliability.
Hyliion Awarded U.S. Navy Contract to Advance Multi-Unit KARNO Power Module
07/18/2025 | BUSINESS WIREHyliion Holdings Corp., a leading provider of innovative KARNOTM Power Modules, announced it has been awarded a Phase II Small Business Innovation Research (SBIR) contract in the amount of $1.5 million from the U.S. Navy to further develop and refine its scalable multi-megawatt platform for shipboard and stationary military applications.
Libra Industries Launches In-House High Precision Underfill Capabilities
07/17/2025 | Libra IndustriesLibra Industries, a leading provider of systems integration and electronics manufacturing services (EMS), is excited to announce the addition of high-precision underfill to its in‑house manufacturing capabilities.