The rising material and labour costs are squeezing global production of electronics, says the latest report by US market research firm IPC.
Their August Global Sentiment of the Electronics Supply Chain Report shows that current conditions for the electronics supply chain remain challenging, with 86% of electronics manufacturers experiencing rising material costs, while 76% indicate labor costs are increasing.
“Industrial production rose at a healthy 6.2 percent annualized rate in the second quarter, strongly suggesting that the economy is not in a recession. At least not yet,” said Shawn DuBravac, IPC chief economist.
Additional survey results from the global sentiment report indicate:
- Demand remains strong, but profit margins still hurting from high costs.
- The labour picture is less bad, but companies expect to continue to have difficulty finding skilled labour.
- Supply chain constraints are showing signs of ease, with an expansion in available inventories for the first time in five months.
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