New global study from IPC finds 9 in 10 manufacturers report rising costs, and vast majority see lack of qualified talent.
A new global survey found that the global shortage of semiconductors and other components continues to have serious consequences for electronics manufacturers, leading to rising costs and higher prices. The survey, conducted by IPC, the global electronics manufacturing association, also found that companies continue to face difficulty in finding qualified talent, with only 15 percent of respondents indicating that the situation is improving.
“Even as sales expectations for electronics manufacturers have improved, they face increases to both material and labor costs, leading to declining inventories and increasing backlogs around the globe,” said John Mitchell, president and CEO of IPC. “The longer the shortage crisis continues unresolved, the more difficult it will be to overcome these compounding problems and return to normal.”
Among other conclusions, the survey results found that:
“Electronics manufacturers are expecting more problems on the horizon as a result of ongoing shortages, both in terms of the six-month outlook and for expected prices in 2022, as the crisis appears to have no end in sight,” said Shawn DuBravac, Chief Economist at IPC and lead researcher on the study. “Heading into the holiday season, these issues and backlogs could have serious repercussions for consumers in the United States and beyond.”
IPC surveyed hundreds of companies from around the world, including a wide range of company sized and representing the full electronics manufacturing value chain. Survey respondents were from North America (44%), Asia (20%) and Europe (17%).