-
- News
- Books
Featured Books
- pcb007 Magazine
Latest Issues
Current IssueThe Growing Industry
In this issue of PCB007 Magazine, we talk with leading economic experts, advocacy specialists in Washington, D.C., and PCB company leadership to get a well-rounded picture of what’s happening in the industry today. Don’t miss it.
The Sustainability Issue
Sustainability is one of the most widely used terms in business today, especially for electronics and manufacturing but what does it mean to you? We explore the environmental, business, and economic impacts.
The Fabricator’s Guide to IPC APEX EXPO
This issue previews many of the important events taking place at this year's show and highlights some changes and opportunities. So, buckle up. We are counting down to IPC APEX EXPO 2024.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - pcb007 Magazine
IPC: Electronics Manufacturers Report Slowing Growth, Cautious Optimism
December 10, 2019 | IPCEstimated reading time: 3 minutes
Growth is slowing worldwide and the industry’s outlook is less optimistic than in previous quarters, although it is still generally positive, according to the results of IPC’s fourth-quarter 2019 Pulse of the Electronics Industry survey. Based on responses from 82 companies that make up a representative sample of the industry, global third-quarter 2019 sales growth, averaging 3%, was at its lowest level since the quarterly survey began in mid-2017. The sales growth the respondents predicted for the current quarter is down further, averaging 2.6%.
This quarter’s composite score for the current direction of the business environment also fell to its lowest level since mid-2017. It remains in positive territory, but just barely. Current-state scores for Europe and the Americas turned negative this quarter. Sales, orders and profit margins are moving in a positive direction on balance this quarter, while labor and material costs, ease of recruiting, inventories and order backlogs are having a negative impact on the current state.
The industry’s expected direction in the next six months remained generally optimistic, with all business indicators looking positive. Among the industry segments, PCB fabricators are the most optimistic about the next six months. Overall, however, the six-month-outlook score continued to weaken compared to the first three quarters of this year. This indicates that the industry expects its health to remain generally good through the first quarter of 2020 despite some slowing.
The respondents’ outlook for the next 12 months remains positive but is down substantially from previous quarters. While a majority of respondents in all segments described the 12-month business outlook as very or somewhat positive, only PCB fabricators were unanimous in reporting a positive outlook. The composite scores on the business outlook for the next 12 months are positive in all regions except Asia, where the score declined to neutral (0 on the index). The uncertainty of trade relations between the U.S. and China is a contributing factor to the lackluster 12-month outlook for respondents in Asia.
A ranking of opportunities that will drive the industry’s future business growth showed that the Internet of Things (IoT) and smart systems is seen as the number one driver, followed closely by growing markets and 5G/high-speed communications. Defense and aerospace topped the list of growing vertical markets cited by the respondents. Medical device and LED lighting markets were also cited.
Respondents also ranked a list of major concerns about conditions in the business environment in terms of their impact on future business growth. Economic uncertainty is the leading concern. Asked about conditions or trends that are significantly increasing their costs, respondents predominantly cited the tight labor market and trade conflicts.
Pulse of the Electronics Industry is a global survey-based data service from IPC that provides a quarterly report on the health of the industry and its outlook for the coming year. The quarterly report shows what factors are driving or limiting growth, and how the outlook differs in various regions and segments of the industry. The confidential surveys are open to all in management positions in the electronics industry. Survey participants receive the report on the quarter’s results.
About IPC
IPC (www.IPC.org) is a global industry association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 5,700 member-company sites 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 Taos, N.M.; Washington, D.C.; Atlanta, Ga.; Brussels, Belgium; Stockholm, Sweden; Moscow, Russia; Bangalore and New Delhi, India; Bangkok, Thailand; and Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou and Beijing, China.
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.