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IPC’s January 2022 global electronics manufacturing supply chain sentiment report found that materials and labor costs continue to be the largest issue facing the electronics supply chain, with nine in 10 electronics manufacturers reporting rising materials costs and more than three-fourths reporting rising labor costs. Though order flows continue to be strong, and both capacity utilization and shipments are expanding, survey respondents reported growing backlogs and shrinking profit margins.
Among other conclusions, the survey results found that:
“Manufacturers expect to see a continued increase in material and labor costs,” said IPC Chief Economist and report author Shawn DuBravac. “Escalating costs are in turn compressing profit margins. Ease of recruiting and finding skilled talent is expected to remain challenging and inventory levels are expected to remain tight for at least the next six months.”
IPC surveyed hundreds of companies from around the world, including a wide range of company-sized and representing the full electronics manufacturing value chain. Survey respondents were from North America (44%), Asia (20%) and Europe (17%).
Click here to download the report on "The Current Sentiment of the Global Electronics Manufacturing Supply Chain".
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