-
- News
- Books
Featured Books
- design007 Magazine
Latest Issues
Current IssueMechatronics
Our expert contributors discuss the advent of mechatronics in PCB design, the challenges and opportunities this creates for circuit board designers, and the benefits—to the employee and the company—of becoming a mechatronics engineer.
Creating a Culture of Collaboration
PCB designers could learn quite a bit from NASA and the private companies that develop spacecraft: Every one of these vehicles is a testament to the value of collaboration among disparate stakeholders. Without a collaborative culture, the rocket might never get off the ground.
Breaking High-speed Material Constraints
Do you need specialty materials for your high-speed designs? Maybe not. Improvements in resins mean designers of high-speed boards can sometimes use traditional laminate systems. Learn more in this issue.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - design007 Magazine
Electronics Industry Continues to Show Solid Performance Though Materials, Labor and Freight Costs Expected to Rise in 2023
February 27, 2023 | IPCEstimated reading time: 1 minute
![](https://iconnect007.com/application/files/7316/9086/9831/news_free_adobestock_jul2022_1.jpg)
Per IPC’s February 2023 Global Sentiment of the Electronics Supply Chain Report, over the next six months, manufacturers expect to see continued increase in both labor and material costs, although to a lesser extent than previously anticipated. On a positive note, backlogs are expected to decline.
Among other data, survey results show:
- On average, electronics manufacturers expect labor costs to increase 9.2 percent over 2022 levels; materials costs to rise 9.9 percent during the year and most surprisingly, they expect freight costs to rise 7.2 percent in 2023. “Though manufacturers anticipate freight costs to rise, depressed demand and improving supply chain dynamics are currently pulling freight costs down, a trend that should continue during the year,” said IPC Chief Economist Shawn DuBravac. “Downward cyclical pressures will curtail volume which should keep prices in check. For some companies, declining freight costs are likely to be their most significant cost savings in 2023.”
- Regarding digital project initiation, roughly 14 percent reported ERP system implementation and enhancements were their number one project for 2023. Other top projects include equipment/tools/resources/technology investment and upgrades and pursuit of CMMC certification.
- Profit margins are expected to decline at a significantly higher rate in APAC vs. North America. 42 percent of manufacturers in APEC anticipate profit margins to decline, while on 15 percent of North American manufacturers are expecting the same.
For the report, IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain. View full report.
Suggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
07/26/2024 | Nolan Johnson, I-Connect007This week, I’ve been attending Thailand Electronic Circuits Asia 2024. This is the inaugural event, hosted by Thailand Printed Circuit Association (THPCA) in collaboration with the Hong Kong Printed Circuit Association (HKPCA). Thailand has supported a PCB industry for some time—mostly automotive applications—but the China Plus One dynamic has definitely taken root here.
Hirose Electric Adds Master Electronics as Authorized Distributor
07/25/2024 | HiroseHirose, a leader in the design and manufacturing of innovative connector solutions, has strategically expanded its Americas distribution network to better support its growing customer base. Master Electronics will support the full Hirose line of connector solutions across the Americas.
MKS’ Atotech and ESI Participate in Electronics Circuit Asia in Thailand
07/25/2024 | AtotechMKS Instruments announces its participation at the Electronics Circuit Asia 2024 in Thailand, July 24-26, highlighting its leading brands Atotech® and ESI® and related advances in advanced packaging, package substrate, and printed circuit board manufacturing.
Strip Etch Strip: Episode 9 of On the Line With... Designing for Reality Podcast Now Available
07/25/2024 | I-Connect007Don't miss the latest episode of "On the Line With... Designing for Reality," where we walk through the PCB manufacturing process. At this stage, we have a panel made up of all the internal layers laminated together, through-holes drilled, and the outer layer copper features covered with a protective layer of tin.
Enhance Your Electronics Expertise Through IPC Courses in August
07/25/2024 | Corey Lynn, IPCAs the global leader in standards, training, and certification for the electronics industry, IPC is pleased to announce an array of upcoming online instructor-led courses this August. These courses are designed to equip professionals with the latest skills and knowledge required to excel in the ever-evolving field of electronics manufacturing and design. Whether you want to deepen your expertise in PCB design and manufacturing, understand the intricacies of intermetallic compounds, or learn about counterfeit part mitigation, IPC has a course tailored for you.