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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:
Michelle Te, I-Connect007
We often hear words and phrases that naturally go together: Salt and pepper, touch and go, trace and space. When it comes to the work of IPC member Carol Handwerker, however, the collocations are much more nuanced, deeper, and have greater significance. You’re more likely to think of phrases such as standards and technology, lead-free and solder, or advanced packaging and heterogeneous integration. These are just some examples of Carol’s lifelong work in materials engineering, involvement with governing bodies, and a forward-thinking approach to electronics manufacturing that has spanned more than three decades.
Chris Mitchell, IPC Vice President of Global Government Relations
IPC-1791, Trusted Electronic Designer, Fabricator and Assembler Requirements, is an electronics standard developed in collaboration with the U.S. Department of Defense (DoD) and industry to address some of today’s greatest risks to a trusted supply chain. The standard provides traceability and helps protect against counterfeits. In fact, IPC-1791 was specifically cited in the U.S. Department of Commerce response to Executive Order 14017-Securing America’s Supply Chains.
Nolan Johnson, I-Connect007
This week, I’m identifying key news about EVs, orbital payloads, environmental sustainability, the state of the economy, and new executive leadership. I’d say it’s a well-rounded selection of what’s happening in the industry. I can’t help but continue to be impressed by the pervasiveness of space commercialization. Satellites have a long history of being commissioned and operated by private business, but as commercial launch vehicles become more available, it seems that satellite launches are accelerating. Read on!