Reading time ( words)
According to IPC’s January Sentiment of the Global Electronics Manufacturing Supply Chain report, 75 percent of electronics manufacturers are experiencing rising material costs, while 74 percent indicate that labor costs are on the rise. At the same time, profit margins, inventory from suppliers and ease of recruitment are presently declining, though ease of recruitment is rising at a faster pace in APAC and Europe than in North America.
With potential risks on the horizon including the threat of weak product demand leading to undesirably high levels of inventory, overall industry sentiment shows surprising resiliency per the January report.
In IPC’s January Economic Outlook report, IPC’s Chief Economist Shawn DuBravac forecasts a looming recession in both the United States and throughout.
Europe, but timing is still uncertain. On the positive news front, both the United States and Europe reported better economic growth during Q4 2022 than had been expected, but both economies are slowing.
“In the last month, we have marginally raised our forecasts for economic growth for both the U.S. and Europe but our expectations remain muted,” said DuBravac. “We expect the U.S. economy to grow 0.5 percent in 2023 (up from 0.3 percent last month) and we expect Europe will decline 0.1 percent in 2023, up from last month’s forecast of a 0.3 percent decline. The loosening of strict COVID restrictions in China will also add growth there and we now expect China’s economy to expand 4.7 percent in 2023.”
View the full reports:
Nolan Johnson, PCB007
Twenty-plus years is a long time to lead a business during a long decline in the industry, but IMI President and CEO Peter Bigelow remains quite confident about the future. The company is in a strong financial position, running well, and looking at new technologies. So, what’s his biggest challenge? It’s not much different than any other manufacturer you talk to, and while he may not have all the answers, he’s clearly got insight to share.
Nolan Johnson, I-Connect007
It’s almost as if upheaval is the new normal. We often describe slow-moving but unstoppable change as moving in “geologic time.” But occasionally–like an earthquake–geology shifts suddenly. Here in my office, tracking the news of the industry, things are moving faster than geologic time, but more slowly than the jolt of an earthquake. The wave seems almost surfable, where before it seemed overwhelming. In this week’s list, we bring news from five different, high-vibration areas in our industry. If you read nothing else this week, these five items will keep you informed.
Christopher Bonsell, Chemcut
This year, I had the great opportunity to come to IPC APEX EXPO in San Diego as a contributing member in Chemcut’s booth. Being an exhibitor is always interesting because you never know what you will learn or who you will meet. Truly, it seems that every IPC APEX EXPO is an eye-opening experience. This was the second show I attended, and last year I was amazed to see how in-depth and interconnected the electronics industry is. Seeing how many different companies contribute to manufacturing today’s core technology never fails to impress me.