IPC releases February 2024 Global Sentiment of the Electronics Supply Chain Report
February 16, 2024 | IPCEstimated reading time: 1 minute
Sentiment among electronics manufacturers remains positive, despite minor setbacks during January, according to IPC’s February Sentiment of the Global Electronics Manufacturing Supply Chain Report.
When asked about expectations for a recession in 2024 and 2025, industry executives believe there is a 39 percent chance of a recession in 2024 and a 34 percent chance in 2025. Notably, manufacturers in Europe report a 2024 recession would most likely begin in Q1 while those in North America believe it would likely begin in Q2.
Sixty-six percent of electronics manufacturers are currently experiencing rising labor costs, while more than 44 percent report rising material costs. At the same time, ease of recruitment, backlogs, and profit margins remain in contractionary territory.
“While the Materials Cost Index fell one point, the Labor Costs Index rose by five,” said Shawn DuBravac, IPC chief economist. “That’s the highest it’s been since August 2023.
"Electronics industry leaders foresee a 39 percent probability of a recession this year, underscoring the critical need for strategic foresight and agility,” added DuBravac. “The geographical nuances in recession expectations between Europe and North America further illustrate the complex global economic interplay affecting the electronics industry."
Additional survey data show:
- Demand remains in expansionary territory, despite slipping this month and falling one point from 103 to 102.
- The Capacity Utilization Index fell two points, while the Shipments Index dropped five points. The decline in shipments could be weather-related.
- The New Orders Index rose three points to 105, the highest level since November 2023.
- While the current view of demand weakened somewhat, the Outlook for demand improved. The increase was led by strong rises in the Shipments Outlook Index which increased by six points and the Backlogs Outlook Index which rose by five points and moved into expansionary territory.
These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between January 15 and January 31, 2024.
Suggested Items
Avnet Launches QCS6490 Vision-AI Development Kit
05/17/2024 | AvnetThe QCS6490 Vision-AI Development Kit from Avnet enables engineering teams to rapidly prototype hardware, application software and AI enablement for multi-camera, high-performance, Edge AI-enabled custom embedded products.
Nortech Systems Reports Q1 Results and Actions to Reduce Facility Costs
05/17/2024 | BUSINESS WIRENortech Systems Incorporated, a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical, industrial and defense markets, reported first quarter ended March 31, 2024 financial results.
Shipments of OLED Monitors Hit 200,000 Units in 1Q24, Annual Forecast to Reach 1.34 Million
05/17/2024 | TrendForceTrendForce’s latest report reveals a robust start to 2024 for OLED monitors, with shipments reaching approximately 200,000 units in the first quarter—marking a YoY growth of 121%.
The ICAPE Group Reports Revenue for Q1 2024
05/16/2024 | ICAPE GroupThe ICAPE Group, a global technology distributor of printed circuit boards (PCB) and custom-made electromechanical parts, announced its revenue for the first quarter of 2024.
Sypris Reports Q1 2024 Results; Revenue Up 10%
05/15/2024 | Sypris Solutions Inc.The Company’s first quarter 2024 consolidated revenue increased 10.1% to $35.6 million compared with the prior-year quarter, representing the 11th quarter of double-digit year-over-year growth during the past 12 quarterly periods.