Nolan’s Notes: Looking Deep Into the Future With X-ray
Knocking Down the Bone Pile: Basics of Component Lead Tinning
Standard of Excellence: Anticipating Customer Needs Early and Often
IPC Releases March 2025 Global Sentiment of the Electronics Manufacturing Supply Chain Report
April 2, 2025 | IPCEstimated reading time: 1 minute
This past March, electronics industry demand strengthened to its highest level in nearly a year, indicating strong expansion in customer and manufacturing activity according to IPC’s [IPC-Current-Sentimen-Global-EMSChain0525.pdf] March Sentiment of the Global Electronics Manufacturing Supply Chain Report. In addition, the Shipment Index also reached its highest point since March 2024, reflecting firms’ abilities to fulfill rising demand and maintain supply chain performance. Capacity utilization increased to its highest level since late 2023, indicating strong operational activity and efficient resource deployment.
Per the report, ease of recruiting skilled talent improved to a record-high, indicating that hiring constraints are continuing to ease for many firms. Material costs have risen, reversing a multi-month decline and pointing to renewed input cost pressures that may warrant monitoring. Labor costs decreased slightly.
In response to special questions regarding supply chain management strategies being considered or implemented to address the impact of recent or proposed tariffs, 31 percent of electronics manufacturers have invested in automation or optimization to counter the impact of tariffs, while 28 percent have switched to non-tariffed suppliers.
Sixty-one percent of electronics manufacturers are considering renegotiating supplier contracts, making it the most widely considered supply chain strategy. Said Shawn DuBravac, Ph.D., IPC chief economist and report author, “On the workforce side, 18 percent have implemented a hiring freeze, with another 36 percent considering it—indicating growing caution around workforce expansion.”
Additional survey data show:
- Over the next six months, electronics manufacturers expect labor and material costs to remain high, with a notable increase in both orders and shipments.
- European electronics manufacturers anticipate a greater decline in capacity utilization over the next six months when compared to North American electronics manufacturers.
- On average, 29 percent of manufacturers’ supply chains are currently reliant on Chinese suppliers.
- Electronics manufacturers expressed greatest concern regarding U.S. trade policies as it relates to overall economic impact (47 percent) and Impact on Business Operations (32 percent).
These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between February 13 and February 28, 2025.
Read the full report.
Share on:
Suggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
04/04/2025 | Nolan Johnson, I-Connect007There was big news throughout the week on a global economic scale. Everything is moving so fast it’s hard to follow. I sat in on a webinar about the U.S. tariff changes announced on April 2, and even the policy wonks, whose life’s purpose is to be expert in these things, couldn’t keep up. One speaker was checking government information websites, and listening to the news on the television even as she gave her update.
'Let’s Talk Production Test' with Bert Horner of The Test Connection, Inc. at SMTA Long Island Chapter Technical Meeting
04/04/2025 | The Test Connection Inc.The Test Connection Inc. (TTCI), a leading provider of electronic test and manufacturing solutions, is pleased to announce that its President, Bert Horner, will present at the SMTA Long Island Chapter Technical Meeting & Dinner on Wednesday, April 16, 2025.
TT Electronics Celebrates 35 Years of Dedication with Rhys Moseley
04/04/2025 | TT ElectronicsAt TT Electronics, the commitment to people as the cornerstone of success is showcased through the remarkable achievements of its employees.
Kasuo Electronics Expands Global Reach with Launch of Online Store for Seamless Component Sourcing
04/04/2025 | PRNewswireKasuo Electronics Co., Ltd. is a professional distributor of electronic components, specializing in integrated circuits (ICs), capacitors, resistors, ferrite beads, inductors, and a wide range of electronic parts.
Acquisition of MADES Strengthens Cicor's Pan-European Leadership in the Aerospace & Defence Sector
04/03/2025 | CicorCicor Group announces that it has signed an agreement to acquire 100% of the shares of Spanish electronics company Malaga Aerospace, Defense & Electronics Systems S.A.U. (MADES).