It’s Only Common Sense: 20 Lessons in 20 Years—A Career in Common Sense
The Marketing Minute: Staying Positive When the Market Isn’t
Marcy’s Musings: Continuing to Invent the Future With SEL
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
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
The Government Circuit: Navigating New Trade Headwinds and New Partnerships
08/25/2025 | Chris Mitchell -- Column: The Government CircuitAs global trade winds continue to howl, the electronics manufacturing industry finds itself at a critical juncture. After months of warnings, the U.S. Government has implemented a broad array of tariff increases, with fresh duties hitting copper-based products, semiconductors, and imports from many nations. On the positive side, tentative trade agreements with Europe, China, Japan, and other nations are providing at least some clarity and counterbalance.
Missile Strike on Ukraine Hits Flex Facility
08/22/2025 | FlexOn the morning of August 21, 2025, our facility in Mukachevo, Ukraine, was damaged during a missile strike. Our emergency protocols were executed to ensure the full evacuation of the site.
TPCA Establishes Thailand PCB Academy in Bangkok
08/22/2025 | TPCAA distinguished delegation of distinguished guests from industry, government, academia, and research in Taiwan and Thailand, including representatives from the Ministry of Higher Education, Science, Research, and Innovation (MHESI), the Board of Investment of Thailand (BOI), and the Taipei Economic and Cultural Office in Thailand (TECO), as well as professors from several Thai universities and member companies, attended the historic occasion.
SINBON Celebrates Opening of New US Manufacturing Facility
08/21/2025 | PRNewswireLeading electronics system integrator SINBON Electronics Co., Ltd. held an opening ceremony on August 18 to celebrate its new 59,000-square-foot facility in Clayton, Ohio.
PEDC Call for Abstracts Deadline Extended to Aug. 31
08/20/2025 | I-Connect007 Editorial TeamThe second Pan-European Electronics Design Conference (PEDC) will take place Jan. 21-22, 2026, in Prague, Czech Republic. The call for abstracts deadline has been extended to Aug. 31. Organized jointly by the German Electronics Design and Manufacturing Association (FED) and the Global Electronics Association (formerly IPC), PEDC serves as a European platform for knowledge exchange, networking, and innovation in electronics design and development.