06 Jan 2022 -
 General

Rising material and labour costs continue to plague supply chain

IPC’s January 2022 global electronics manufacturing supply chain sentiment report found that materials and labour 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 labour costs. Though order flows continue to be strong, and both capacity utilisation and shipments are expanding, survey respondents reported growing backlogs and shrinking profit margins.

“Manufacturers expect to see 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.”

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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