Jun 07, 2023 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
interest 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 full report.
IPC (www.IPC.org) is a global industry association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 3,200+ member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly, and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $2 trillion global electronics industry. IPC maintains additional offices in Atlanta, Georgia; Washington, D.C.; Munich, Germany; Brussels, Belgium; Bangalore and New Delhi, India; Bangkok, Thailand; and Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou and Beijing, China.
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