-
- News
- Books
Featured Books
- design007 Magazine
Latest Issues
Current IssueSilicon to Systems: From Soup to Nuts
This month, we asked our expert contributors to weigh in on silicon to systems—what it means to PCB designers and design engineers, EDA companies, and the rest of the PCB supply chain... from soup to nuts.
Cost Drivers
In this month’s issue of Design007 Magazine, our expert contributors explain the impact of cost drivers on PCB designs and the need to consider a design budget. They discuss the myriad design cycle cost adders—hidden and not so hidden—and ways to add value.
Mechatronics
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.
- 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
AIM Solder Appoints Kevin Kwan as Business Development Manager in Asia
09/06/2024 | AIM SolderAIM Solder, a global leader in solder assembly materials for the electronics industry, is thrilled to announce the appointment of Kevin Kwan as Business Development Manager for the Asian market.
SEMICON India 2024 to Highlight Local Semiconductor Ecosystem Growth and Industry Trends
09/06/2024 | SEMISEMICON India 2024 will bring together global leaders, semiconductor industry experts, academia, and government officials from September 11-13, 2024, at the India Exposition Mart Ltd. (IEML) in Greater Noida, Delhi NCR.
MICRONOX MX2123 to Lead KYZEN Offerings at The International Symposium on Microelectronics
09/05/2024 | KYZEN'KYZEN, the global leader in innovative environmentally responsible cleaning chemistries, will exhibit at The 2024 International Symposium on Microelectronics scheduled to take place October 1-3, 2024 at the Encore Boston Harbor.
Altus Enhances Customer Support in the North
09/05/2024 | Altus GroupAltus Group, a leading capital equipment distributor for the electronics industry in the UK and Ireland, is pleased to announce the addition of a Senior Sales Manager to its growing team.
Altium, Mouser Team Up to Advance Electronics Education and Careers Worldwide
09/05/2024 | AltiumAltium LLC, a global leader in software and solutions for the electronics industry, and Mouser Electronics, a global authorized distributor of semiconductors and electronic components, are excited to announce a strategic partnership aimed at advancing electronics education and careers worldwide.