Electronics Companies Spurring US Construction Boom
BANNOCKBURN, IL – Manufacturers are investing in new facilities at a record pace, according to IPC, some 2.3 times the 2019 (pre-Covid) levels. Much of this is likely attributable to the Chips Act, which has spurred billions in capital investment over the past 24 months.
Speaking in an open webinar in November, IPC’s Shawn DuBravac added that electronics manufacturing is “nearly 55% of the manufacturing construction spend.”
The outlook for GDP growth in the US in 2025 has improved from summer to fall, settling at 2.1% in November, up from 1.7% in January. That suggests a dip from the forecast of 2.7% growth in 2024, but a recession is “unlikely,” according to IPC.
DuBravac added that price inflation has stabilized at around 0.2% but service inflation remains elevated at 3.5%, with prices up 20% over 2019.
Hiring at manufacturers is slowing, and the sector has lost 50,000 spots in the past year, but open jobs persist, DuBravac said. More than a quarter of those employed in computers and electronics products manufacturing are over 55, while the average manufacturing age is 44.
Hot Takes
China could surpass Taiwan to become the world’s largest producer of PCBs in 2024, with a 33% share predicated on an output value of $26.8 billion, up 17% from 2023. (Taiwan Printed Circuit Association)
India’s electronics manufacturing industry faces a deficit of 10 million trained professionals, while the sector’s 25-30% compounded growth rate is expected to generate 12 million jobs by 2027-28. (TeamLease Services)
Malaysian electronics exports in October grew 7.6% year-over-year while accounting for more than 41% of total exports. (Ministry of Investment, Trade and Industry)
India’s fiscal 2024 has seen a decline in electronic imports, thanks to the nation’s Make in India campaign. (Economic Times)
Worldwide tablet shipments grew 20.4% in the third quarter, totaling 39.6 million units. (IDC)
Worldwide smartphone shipments are forecast to grow 6.2% year-over-year in 2024 to 1.24 billion units. (IDC)
The global hardcopy peripheral market rebounded in the third quarter, growing 3.8% year-over-year. (IDC)
Japan has unveiled a $65 billion plan to boost the country’s chip and artificial intelligence industries via subsidies and other financial incentives.
Global semiconductor sales rose 23.3% year-over-year to $166 billion in the third quarter. (SIA)
North American EMS shipments in October were up 14.7% year-over-year and 3.4% sequentially. Bookings rose 6.6% from a year ago but fell 4.5% from the previous month. (IPC)
October North American PCB shipments dropped 11.1% year-over-year but grew 20.4% sequentially. Bookings rose 3.5% from a year ago and slipped 3.7% from the previous month. (IPC)
Electronic design-automation providers stand to gain $6 billion through 2030. (Bloomberg Intelligence)
