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Supply chain pressures are hitting growth – IPC

Aug 22, 2022
supply chains under pressure

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.

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