Ease of recruiting workers remains difficult, with 57% reporting it has gotten worse in the last month. Seventy-two percent of North American firms report ease of recruiting workers is declining, while 37% of firms in APAC and 43% of those operating globally report the same.
Conversely, 35% of firms operating globally report ease of recruiting workers is improving, whereas 6% of firms in North America and Europe report the same. Among firms in APAC, ease of recruitment is holding steady at 51%.
While order flow remains positive, higher costs are hurting profit margins, with 58% of electronics manufacturers reporting orders are expanding, says IPC. Forty percent report profit margins are declining, and 19% report profit margins are improving.
Eighty-two percent of manufacturers in North America indicate labor costs are rising vs. 59% among firms operating in APAC, where, along with European firms, labor costs are more likely to be holding steady, says IPC.
Ninety-eight percent of North American manufacturers indicate rising material costs compared to 90% in Europe, 88% in APAC, and 78% among global manufacturers.
Fifty-three percent of firms in North America report declining inventory available to customers, while 30% of firms in Europe, 29% of firms in APAC, and 26% of those operating globally are currently experiencing declines.
At the same time, 30% of European manufacturers indicate inventory available to customers is rising, with the diffusion index in Europe no longer indicating a state of contraction.
Two-thirds of manufacturers report their government is not invested in the electronics industry’s success. Only 20% of North American manufacturers agree their government is invested in the success of the electronics manufacturing industry, compared to higher agreement among manufacturers in Europe (38%); APAC (57%); and those operating globally (57%).
Similarly, 13% of manufacturers in North America agree their government is adequately helping the EMS industry transition to the factory of the future, whereas 37% of firms in Europe, 41% of global firms, and 50% of firms in APAC feel the same.
Fifty-six percent of North American manufacturers expect backlogs to rise in the next six months, compared to 28% among firms in Europe, where 60% of firms expect backlogs to remain flat.
Thirty percent of global manufacturers and 21% of manufacturers in APAC expect ease of recruiting to rise in the next six months, while 9% of manufacturers in North America and 4% of manufacturers in Europe anticipate the same.
Eighty percent of North American firms anticipate rising labor costs in the next six months, compared to 55% among firms in Europe, where 41% are expecting labor costs to remain flat.
Fifty-seven percent of global manufacturers, along with 55% of APAC manufacturers, expect capacity utilization to rise in the next six months, compared to 30% among firms in North America.
Eighty-eight percent of North American manufacturers expect material costs to rise in the near future, compared to 67% in Europe. European firms are more likely to indicate material costs will remain stable (31%), while firms in APAC are more likely to anticipate further decline (7%).
Thirty-six percent of North American manufacturers expect inventory available to customers to decline, while 13% of firms in Europe anticipate the same. (CD)