The Right Approach: Get Ready for ISO 9001 Version 6
Dan’s Biz Bookshelf: ‘Still Broke: Walmart’s Remarkable Transformation'
Driving Innovation: Depth Routing Processes—Achieving Unparalleled Precision in Complex PCBs
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.
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
Smartphone Production Rises 4% QoQ in 2Q25 as Inventory Adjustment Ends
09/12/2025 | TrendForceTrendForce’s latest investigations reveal that global smartphone production reached 300 million units in 2Q25, up 4% QoQ and 4.8% YoY, driven by seasonal demand and the recovery of brands such as Oppo and Transsion following inventory adjustments.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
09/12/2025 | Marcy LaRont, I-Connect007We may be post-Labor Day, but it is still hot-hot-hot here in the great state of Arizona—much like our news cycles, which have continued to snap, crackle, and pop with eye-raising headlines over this past week. In broader global tech news this week, AI and tariff-type restrictions continues to dominate with NVIDIA raising its voice against U.S. lawmakers pushing chip restrictions, ASML investing in a Dutch AI start-up company to the tune of $1.5 billion, and the UAE joining the ranks of the U.S. and China in embracing “open source” with their technology in hopes of accelerating their AI position.
Delta Electronics Posts 26.7% Growth in Sales Revenues for August
09/12/2025 | Delta ElectronicsDelta Electronics, Inc. announced its consolidated sales revenues for August 2025 totaled NT$47,860 million, a 26.7 percent increase as compared to NT$37,770 million for August 2024 and a 5.4 percent increase as compared to NT$45,397 million for July 2025.
Flex Named to TIME's World's Best Companies List for Third Consecutive Year
09/12/2025 | FlexFlex announced its inclusion on the TIME World's Best Companies 2025 list. This marks the third consecutive year the company was included in this prestigious ranking, which recognizes top-performing companies across the globe.
Direct Imaging System Market Size to Hit $4.30B by 2032, Driven by Increasing Demand for High-Precision PCB Manufacturing
09/11/2025 | Globe NewswireAccording to the SNS Insider, “The Direct Imaging System Market size was valued at $2.21 Billion in 2024 and is projected to reach $4.30 Billion by 2032, growing at a CAGR of 8.68% during 2025-2032.”