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.
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
Advanced Rework Technology Inspires Students at National Manufacturing Day 2025
10/08/2025 | A.R.T. Ltd.Advanced Rework Technology Ltd. (A.R.T.), a leading independent IPC-accredited training provider, joined forces with Jaltek, a UK-based electronics manufacturer with over 35 years’ experience in designing and producing high-quality electronic products, to deliver hands-on workshops for students during National Manufacturing Day 2025.
productronica: Increasing Demand for Tamper-proof Electronics
10/08/2025 | productronicaThe electronics industry will get together at productronica in Munich from November 18 to 21, 2025. One of the three key topics this year will be secure microelectronics.
Hall of Fame Spotlight Series: Highlighting Dan Feinberg
10/08/2025 | Gene WeinerThis Hall of Fame spotlight features Dan Feinberg. Dan and I have been friends in a variety of relationships and activities for more than half a century. His journey in the electronics and the PCB industry is a testament to dedication, innovation, and leadership. His contributions span over five decades, introducing new technologies, mentoring professionals, and advocating for policies that strengthened manufacturing in the United States. As a Hall of Fame member, Dan’s legacy continues to inspire new generations of engineers, technologists, and business leaders.
The Training Connection, LLC Welcomes Industry Veteran Jack Harris to Lead Training Partnerships
10/07/2025 | The Training Connection LLCThe Training Connection, LLC (TTC-LLC), a premier provider of test engineering and development training, is proud to announce that Jack Harris, one of the most recognized names in electronics manufacturing training and technical development, has joined the company as Relationship Lead, Training.
Hon Hai Sales Jump 11% on AI Server Boom, Boosting Nvidia Supply Chain
10/07/2025 | I-Connect007 Editorial TeamNvidia Corp.’s key server production partner, Hon Hai Precision Industry Co., reported an 11% year-on-year rise in quarterly sales on October 5, underscoring sustained global demand for artificial intelligence (AI) infrastructure, Bloomberg reported.