22 Feb 2024 -

Electronics manufacturers cautious but optimistic despite recession fears


Electronics manufacturers are expressing cautious optimism despite facing rising costs and a potential recession, according to a recent industry survey by the IPC.

While 66% of manufacturers are experiencing rising labor costs and 44% grapple with higher material costs, demand for electronics remains positive, albeit slightly down compared to the previous month.

However, a looming shadow hangs over the industry: 39% of executives believe a recession is likely in 2024, with European manufacturers anticipating an earlier hit than their North American counterparts.

“Electronics industry leaders foresee a 39 percent probability of a recession this year,” said Shawn DuBravac, IPC chief economist. “The geographical nuances in recession expectations further illustrate the complex global economic interplay affecting the electronics industry.”

Interestingly, despite the current challenges, the outlook for future demand appears brighter. Both the Shipments Outlook Index and the Backlogs Outlook Index rose significantly, suggesting manufacturers are anticipating a rebound in the later part of the year.

This mixed picture highlights the complex situation facing the electronics industry. While immediate concerns exist, long-term optimism persists, indicating a potential for resilience despite potential economic headwinds.

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