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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.
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