IPC Reports Rising Material and Labor Costs Continue to Impact Electronics Manufacturing Supply Chain
Nine in 10 electronics manufacturers reported rising materials costs, and more than three-fourths reporting rising labor costs.
IPC’s January 2022 global electronics manufacturing supply chain sentiment report found that materials and labor 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 labor costs. Though order flows continue to be strong, and both capacity utilization and shipments are expanding, survey respondents reported growing backlogs and shrinking profit margins.
According to the survey, material costs are currently rising at a higher rate in North American than APAC. The survey found that 96% of North American manufacturers report rising material costs while 74% report material costs are up in APAC.