Electronics Manufacturers Reporting Cautious Optimism, Especially for Second Half of 2023
May 31, 2023 | IPCEstimated reading time: 1 minute
Per IPC’s May 2023 Global Sentiment of the Electronics Supply Chain Report, cost pressures continue to recede and demand remains positive for now, leading to a cautiously optimistic global electronics industry sentiment.
“Geopolitical factors, along with the continued impacts of inflation and rising nterest rates, have led manufacturers to describe the current economy as slow, uncertain, challenging, difficult, volatile, and unpredictable,” said Shawn DuBravac, IPC chief economist. “However, despite current conditions, the outlook for 2023 is relatively positive, with manufacturers expressing optimism and expecting growth, especially in the latter half of the year.”
Additional survey results indicate:
- The majority of respondents are still reporting that labor costs and material costs are rising, but the number of companies experiencing rising costs continues to decline. Only 49% of companies believe material costs will rise in the coming months, the first time this has fallen below 50 percent.
- Ease of recruiting skilled workers has also improved to its highest level since the survey began.
- The Orders Index slipped to 101. This is still in expansionary territory, but it is the lowest level seen since the start of the survey.
- Orders are expected to decline more so for firms operating in North America versus those in Europe, who instead are more likely expecting orders to remain stable.
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 the full report.
Suggested Items
Warm Windows and Streamlined Skin Patches – IDTechEx Explores Flexible and Printed Electronics
04/26/2024 | IDTechExFlexible and printed electronics can be integrated into cars and homes to create modern aesthetics that are beneficial and easy to use. From luminous car controls to food labels that communicate the quality of food, the uses of this technology are endless and can upgrade many areas of everyday life.
Book Excerpt: The Printed Circuit Assembler’s Guide to... Factory Analytics
04/24/2024 | I-Connect007 Editorial TeamIn our fast-changing, deeply competitive, and margin-tight industry, factory analytics can be the key to unlocking untapped improvements to guarantee a thriving business. On top of that, electronics manufacturers are facing a tremendous burden to do more with less. If you don't already have a copy of this book, what follows is an excerpt from the introduction chapter of 'The Printed Circuit Assembler’s Guide to... Factory Analytics: Unlocking Efficiency Through Data Insights' to whet your appetite.
Listen Up! The Intricacies of PCB Drilling Detailed in New Podcast Episode
04/25/2024 | I-Connect007In episode 5 of the podcast series, On the Line With: Designing for Reality, Nolan Johnson and Matt Stevenson continue down the manufacturing process, this time focusing on the post-lamination drilling process for PCBs. Matt and Nolan delve into the intricacies of the PCB drilling process, highlighting the importance of hole quality, drill parameters, and design optimization to ensure smooth manufacturing. The conversation covers topics such as drill bit sizes, aspect ratios, vias, challenges in drilling, and ways to enhance efficiency in the drilling department.
Elevating PCB Design Engineering With IPC Programs
04/24/2024 | Cory Blaylock, IPCIn a monumental stride for the electronics manufacturing industry, IPC has successfully championed the recognition of the PCB Design Engineer as an official occupation by the U.S. Department of Labor (DOL). This pivotal achievement not only underscores the critical role of PCB design engineers within the technology landscape, but also marks the beginning of a transformative journey toward nurturing a robust, skilled workforce ready to propel our industry into the future.
Winner of The Science Show Rakett 69 Receives Incap Scholarship
04/24/2024 | IncapThe winner of the Rakett 69 science show, Andri Türkson, who stood out as an electronics enthusiast, received a scholarship from Incap Estonia, along with an internship opportunity in Saaremaa.