Electronics Manufacturers See Internet of Things as Key Growth Driver
The electronics industry’s expected direction in the next six months remained generally optimistic, with all business indicators looking positive.
Growth is slowing worldwide and the electronics industry’s outlook is less optimistic than in previous quarters, although it is still generally positive, according to the results of IPC’s fourth quarter 2019 “Pulse of the Electronics Industry” survey. Based on responses from 82 companies that make up a representative sample of the industry, global third quarter 2019 sales growth, averaging 3%, was at its lowest level since the quarterly survey began in mid-2017. The sales growth the respondents predicted for the current quarter is down further, averaging 2.6%.
The fourth quarter’s composite score for the current direction of the business environment also fell to its lowest level since mid-2017. It remains in positive territory, but just barely. Current-state scores for Europe and the Americas turned negative this quarter. Sales, orders, and profit margins are moving in a positive direction on balance this quarter, while labor and material costs, ease of recruiting, inventories, and order backlogs are having a negative impact on the current state.