Driving Innovation: Mechanical and Optical Processes During Rigid-flex Production
It’s Only Common Sense: Your Biggest Competitor Is Complacency
The Chemical Connection: Onshoring PCB Production—Daunting but Certainly Possible
IPC Releases January 2025 Global Sentiment of the Electronics Manufacturing Supply Chain Report
January 28, 2025 | IPCEstimated reading time: 1 minute
Demand in the electronics industry recovered to 100 in December, marking the threshold between contraction and expansion after four consecutive months below this level according to IPC’s January Sentiment of the Global Electronics Manufacturing Supply Chain Report. Of the four demand components, the Backlog Index remained below 100 and was the only component unchanged over the past month. The New Orders Index rose by four points to 102, moving marginally into expansion territory. Similarly, the Shipment Index increased by four points, reflecting broader improvements in volume indicators.
Cost pressures continue to challenge operations. The Labor Costs Index held steady this month, while the Material Costs Index climbed three points, recovering slightly from its all-time low. However, aggregated cost indicators reached a four-month high, signaling persistent cost pressures on operations.
In response to special questions regarding companies’ current work from home practices, minimal changes are expected in 2025 work arrangements. Factory floor policies remain rooted in traditional on-site requirements, reflecting the operational challenges and technical demands of these roles. Europe stands out with the largest flexibility increase, as hybrid arrangements are projected to grow by 5 percent.
“While 2025 work-from-home policies suggest incremental shifts toward flexibility, particularly in APAC and Europe, these changes are more pronounced for non-factory employees,” said Shawn DuBravac, Ph.D., IPC chief economist and report author. “For factory floor employees, minor increases in hybrid work are anticipated, but on-site roles remain the overwhelming standard, underscoring the rigidity of these positions,” Dr. DuBravac added.
Additional survey data show:
- Half of electronics manufacturers are currently experiencing rising labor (52 percent) and material (51 percent) costs.
- European electronics manufacturers, along with those operating globally, anticipate a decline in material costs over the next six months more so when compared to North American electronics manufacturers.
- 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 December 11 and December 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
Henger Microelectronics Expands Global Footprint with Major Equipment Shipment to Southeast Asia
10/31/2025 |Henger Microelectronics has reached a major milestone in its global expansion strategy with the successful shipment of advanced plasma etching and cleaning systems, along with automation equipment, to multiple countries and regions across Southeast Asia. This achievement marks a significant step forward in the company’s international growth and reinforces its position as a leading force in the global plasma equipment industry.
TTCI Brings Hands-On Test Engineering and IPC Training Expertise to PCB Carolina 2025
10/31/2025 | The Test Connection Inc.The Test Connection Inc. (TTCI), a trusted provider of electronic test and manufacturing solutions, and The Training Connection LLC (TTC-LLC) will exhibit at PCB Carolina on Wednesday, November 12, 2025, at the McKimmon Center at NC State University in Raleigh, North Carolina. Attendees can visit Table 4 to say hello to Bert Horner and Bill Graver, and learn more about their test engineering services and technical training programs.
Cephia Secures $4M Seed Funding to Revolutionize Multimodal Sensing with Metasurface Technology
10/31/2025 | PRNewswireCephia, a startup building products using advanced AI computational imaging technologies and silicon sensors made from advanced metamaterials, formally launched with several pilot customers and $4 million in seed venture capital funding.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
10/31/2025 | Nolan Johnson, I-Connect007Last week, the IMPACT conference took place in Taipei, bringing together advanced packaging experts from around the globe to share their knowledge. We’ll be bringing you post-conference coverage over the next few weeks, so look for that in our newsletters, and in the Advanced Electronic Packaging Digest. Other news seemed to have the U.S. at the center of the global discussions. My picks start in Phoenix, where TSMC, NVIDIA, and Amkor are all scrambling to establish new capabilities. There’s nothing like a strong demand signal to cause build-out, and AI chips are doing exactly that.
NEDME 2025 Draws Strong Northwest Crowd, Builds on Tradition of Regional Collaboration
10/31/2025 | NEDMEThe NW Electronics Design & Manufacturing Expo (NEDME) 2025 once again brought together the Pacific Northwest community for a full day of learning, networking, and industry connections.