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Global Electronics Industry Remains Under Pressure from Rising Costs
August 4, 2025 | Global Electronics AssociationEstimated reading time: 1 minute
The global electronics manufacturing supply chain remains under pressure from rising costs, with 61% of firms reporting higher material costs and 54% noting increased labor expenses. according to the Global Electronics Association’s Sentiment of the Global Electronics Manufacturing Supply Chain Report. While the Material Cost Index dipped slightly from June and profit margins showed a modest gain (+6 points), only 15% of manufacturers reported actual profit improvement, highlighting the fragility of recovery.
Market Dissonance: Strong Demand Despite Volatility, Hiring Challenges
Operational metrics such as orders, shipments, backlogs, and capacity utilization continue to signal expansion, maintaining momentum from the rebound that began in late 2024.
Over the next six months, electronics manufacturers expect material and labor costs to remain high, while ease of recruitment is expected to remain challenging.
Shawn DuBravac, Ph.D., Global Electronics Association’s chief economist and report author noted, “While demand indicators like orders and shipments remain strong, cost pressures continue to weigh heavily on the global electronics manufacturing sector, Operational momentum remains intact, yet the cost structure is straining under pressure. Manufacturers are adapting, but margin recovery remains elusive.”
Deeper Dive: Workforce Engagement
Electronics manufacturers globally report that their growth is constrained by an inability to recruit, onboard, retain, and upskill workers. In response to special questions regarding active hiring and skilled talent acquisition, 60% of firms are actively hiring, with European companies more likely to be pursuing talent for critical roles. Across all regions, the ability to secure skilled workers is a key limiting factor; 63% of firms report that talent shortages are constraining business growth, reinforcing labor as a critical operational challenge.
These results are based upon the findings of the Global Electronics Association’s Current State of Electronics Manufacturing Survey, fielded between June 12 and June 30, 2025.
Read the full report.
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Nolan’s Notes: The Interconnectedness of a Global Supply Chain
08/04/2025 | Nolan Johnson -- Column: Nolan's NotesYou may recall when I’ve discussed the research and development of a particular magazine issue topic and how, at times, I’ve pivoted at the last minute because of what I learned from the information I’ve gathered. This month, my original focus was on cultivating your brand, but the more I investigated the topic, the more my subject experts leaned toward international supply chain strategies. Not surprisingly, these two disparate topics are far more interrelated than they might seem.
Assel Scales Up Its Sustainability Operations
08/04/2025 | AsselRecently, Assel completed a major expansion of a photovoltaic solar power system that will significantly boost the company’s renewable energy capacity, reduce environmental impact and enhance our sustainability profile.
Cicor Completes Acquisition of MADES, Strengthens A&D Market Leadership and Sees No Material Impact from US Tariffs
08/04/2025 | Cicor Technologies Ltd.The Cicor Group announces the closing of the acquisition of 100% of the shares in Spanish electronics company MADES S.A.U., headquartered in Málaga (Spain), from the French Latecoere Group.
Kimball Electronics Romania's (KERO) Dan Copocean Appointed President of North American Economic Club (NEAC)
08/04/2025 | Kimball Electronics Inc.Kimball Electronics is proud to announce that Dan Copocean, General Manager of Kimball KERO, has been appointed as the new President of the NAEC.
Statement from the Global Electronics Association on the July 2025 Tariff on Copper Foil and Electronics-Grade Copper Inputs
07/31/2025 | Global Electronics AssociationWe are disappointed by today’s decision to impose a 50% tariff on imported copper foil and other essential materials critical to electronics manufacturing in the United States.