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Per IPC’s April 2023 Global Sentiment of the Electronics Supply Chain Report, last month delivered a mixed bag of industry sentiment: cost pressures are receding; industry demand appears to be slowing; and industry expects growth in some sectors.
Survey results show:
- 54 percent of respondents reported that labor and material costs are rising, but the number of companies experiencing rising costs continues to decline.
- The Orders Index slipped to 105. While this is still in expansionary territory, it is the lowest it has been since the start of the survey.
- Industry believes the military sector will grow 16 percent on average this year, followed by the aerospace sector and the communications sector which are both expected to grow by roughly 11 percent. The medical sector is expected to rise 10 percent.
- The automotive sector and industrial electronics sector are both expected to rise 5.6 percent. The consumer electronics sector is expected to decline 3 percent and the computer sector is expected to decline 7 percent in 2023.
“Over the next six months, electronics manufacturers expect to see continued increase in both labor and material costs,” said Shawn DuBravac, IPC chief economist. “Meanwhile, backlogs, ease of recruitment, and profit margins are expected to contract.”
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.
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!
I-Connect007 Editorial Team
Welcome to the Spring issue of IPC Community! This quarterly publication was created with you in mind! In this issue, you’ll find articles, interviews, columns, graphics, surveys, IPC member benefits, and so much more. Each issue is designed to celebrate the success between IPC and its members and how this relationship benefits the entire electronics manufacturing industry.