By Diana Radovan, director of sustainability policy 

With the European Chemicals Agency (ECHA) preparing its final Risk Assessment Committee opinion and draft Socio-Economic Analysis Committee opinion on the upcoming PFAS restriction, the Global Electronics Association has provided updated feedback on the revised 2025 Draft Restriction Proposal. The submission, directed to ECHA and the dossier submitters from Denmark, Germany, the Netherlands, France, and Sweden, outlines sector-wide concerns regarding the impact of broad PFAS restrictions on electronics manufacturing. A proportionate, risk-based approach is urgently needed to address the use of functional-critical PFAS in electronics, particularly fluoropolymers and other substances for which no technically viable alternatives currently exist.

Read the full position here. Contact: DianaRadovan@electronics.org

By Sandy Gentry, Communications Director

As the world’s climate leaders convene at COP30, their decisions will ripple far beyond the conference. For electronics manufacturing — from printed circuit board production through product assembly to end-of-life recycling — the agenda is a roadmap for transformation. 

Mining, material sourcing, and device lifecycles are now part of the broader climate and equity conversation at COP30. For electronics companies, this means the spotlight is expanding beyond carbon reduction to include the full environmental and social footprint of materials and supply chains.

Here we elaborate on why COP30 matters and how companies are taking steps that show sustainability efforts aren’t an obligation; they're the path to innovation.

Electronics Manufacturing in the (Energy Efficient) Spotlight

Manufacturing electronics has always been complex: high energy use, a mix of materials (some critical or rare), global supply chains, and evolving product lifecycles. At COP30, several themes matter directly to the electronics sector:

• Decarbonization and Energy Efficiency: As governments increase emission reduction targets, manufacturers face higher expectations around energy use and GHG tracking.
• Circular Economy and Materials: The “take‑make‑waste” model is under pressure; reuse, recycling and designing for disassembly are increasingly central.
• Responsible Supply Chains: New trade, regulatory or environmental frameworks will ask for deeper transparency across multi‑tier suppliers.
• Design and Innovation: Sustainable design is a fore thought, core to competitiveness, and meeting customer and investor demands.

At this COP, the conversation will not just be about pledges — it will be about proof. Electronics manufacturers are uniquely positioned to demonstrate measurable progress through smarter design, circular systems, and transparent reporting across the product lifecycle. 

Real World Stories: Manufacturers Walking the Talk

Let’s bring the conversation to the factory floor. Here are four Global Electronics Association member companies that illustrate how the themes above become action.

LG Electronics -- Smart Manufacturing and Resource Efficiency

At its Changwon factory in Korea, LG Electronics used a digital twin of the assembly line to simulate and optimize operations, resulting in a 30% reduction in energy consumption, a 70% improvement in product quality, and a 17% productivity boost. Sustainable Manufacturing Expo
 

This is exactly the kind of innovation COP30 will encourage: leveraging digital tools to reduce manufacturing footprint and improve sustainability metrics.

Jabil Inc. -- Embedding Sustainability Across Operations and Product and Supply Chain Practices

• Jabil recently reported a 46% reduction in greenhouse gas (GHG) emissions compared to its 2019 baseline. Nasdaq+1
• It has expanded its Scope 3 indirect emissions inventory (to account more fully for upstream/downstream impacts) and improved its landfill diversion efforts (10 % of applicable sites certified at 90 %+ diversion) in its FY2024 report. Jabil+1
• Jabil joined the Circular Electronics Partnership (CEP), signaling a commitment to circular economy collaboration across the electronics industry. CEP 2030+1

Flex – Showcasing How Manufacturing Operations are Transforming

• The World Economic Forum designated Flex’s factory in Sorocaba, Brazil, as a “Sustainability Lighthouse”, resulting from Flex’s ability to reduce , Scope 1 and  2 emissions by 41%, eliminated 44 kt of Scope 3 emissions, and cut water consumption by over 30%. PR Newswire
• Flex’s facility in Poland runs on 100% renewable energy and was awarded the Ericsson AB Supplier Sustainability Award for its contributions to reducing downstream customer emissions. Flex
• In 2025, Flex was named Ford Motor Company’s Sustainability Supplier of the Year for its work on a product level carbon footprint tracking pilot in partnership with Ford (built on the CatenaX framework). Flex Investors

Koh Young Technology – Committed to Environmental Stewardship

• The company has invested in rooftop solar arrays at multiple facilities, including a 75 kW installation at its Seoul R&D center, generating nearly 95,400 kWh annually and reducing emissions by 44 tCO₂e. Fleet electrification is also underway, with over half of corporate vehicles now electric, and plans to expand further.
• Koh Young’s advanced 3D inspection systems significantly cut PCB waste—reducing scrap from 300 units to 32 in one example—demonstrating how process innovation drives sustainable production. Workplace initiatives such as eliminating disposable cups, installing food-waste processors, and upcycling materials further reinforce a culture of reuse.
• All waste and hazardous materials are managed in compliance with global standards, including RoHS 2 and MSDS protocols, with 100 % of recyclable waste streams fully recycled. Water-saving measures at key sites reduce annual consumption by 200 tons.
• Koh Young’s KY8030, Zenith AOI, and KSMART platforms use AI, predictive maintenance, and real-time data to optimize production yields, minimize material use, and lower environmental impact. Community Magazine

What This Means for Executives and Engineering Teams: A Call to Action

If you’re in leadership or on the engineering team in an electronics manufacturing company, here’s how to translate the COP30 agenda into concrete action items:

• Audit your metrics: Are you tracking energy use, materials circularity, supplier transparency, product end-of-life returns?
• Design for sustainability: Embed circularity, repairability, and recyclability early in product design.
• Digitize operations: Use digital twins, real-time monitoring, AI/analytics to optimize resource use
• Build resilient supply networks: Deeply map your supplier tiers, enforce standards, provide support/training.
• Communicate and differentiate: Sustainability is increasingly a brand and business strategy. Investors and customers expect it.
• Look ahead to regulation: COP30 will likely shape emerging regulations; early movers gain advantage; laggards risk cost, disruption or reputational damage.

Ultimately, COP30 raises the bar for accountability. The companies that can demonstrate progress — not just intentions — across sourcing, manufacturing, and end-of-life will set the standard for the next decade of electronics innovation.

Why the Evolve Program Matters

Within the Evolve program, we help electronics manufacturers translate these vast sustainability goals into engineering roadmaps, product strategies and supply chain workflows. By working together, our members can lead the transition and set new industry benchmarks.

Business and Sustainable Innovation is Here

COP30 represents more than a policy event, it’s a strategic accelerator for the electronics industry. Those who move early, integrate sustainability into design and manufacturing, and embrace transformation will thrive.

As we look ahead, the era of “business as usual” is over. The era of “business plus sustainable innovation” is here.

By Chris Jorgensen, senior director, next generation standards

We recently held standards development committee meetings in Europe, enabling us to ensure meaningful participation on a global scale. By meeting in-region, the Association expands engagement among European engineers, manufacturers, and training organizations, particularly within highly active European-centric groups, ultimately strengthening international collaboration and ensuring IPC standards reflect global needs rather than a single geographic perspective.

For information on how you can participate in developing the standards critical to our industry, visit: https://www.electronics.org/ipc-standards

Top Themes and Observations

Over four days, nearly 100 people delivered meaningful updates and changes to IPC standards that help ensure the safety, reliability, and quality of numerous consumer, commercial, and industrial products that we rely on daily. While attending the committee meetings and conversing directly with our European members, the following themes emerged:

• Momentum toward a standardized CO₂e calculation and sustainability reporting framework
• Renewed and expanded European technical input on cornerstone standards J-STD-001 and IPC-A-610
• Major advancements in training and certification delivery, including new approaches for workmanship assessment and multilingual support
• Continued focus on advanced manufacturing topics such as high-voltage design, press-fit technology, 3D plastronics testing, and connected-factory data interoperability
• Strong cross-collaboration between digital manufacturing standards (CFX, HERMES, traceability, cybersecurity) to support secure, automated, and data-driven factories

THE DETAILS

Upon examining the themes more closely, several specific details about the meetings stood out:

• Task groups for IPC-A-610 and IPC J-STD-001 made regional dispositions of comments and aligned updates to workmanship criteria.
• The HERMES Standard task group advanced improved machine-to-machine communication for PCB assembly, discussing best practices and alignment with IPC-2591.
• The CFX task group continued its efforts on CFX v2.0 adoption and preparation for v2.1, with a focus on real-world factory use cases, MES integration, and broader interoperability across automation ecosystems. Committee members prioritized cybersecurity and supply chain trust, with the IPC-1792 task group pushing forward foundational work to strengthen validated secure supply chain practices, incident-notification approaches, and alignment with global frameworks.
• The IPC-1782 traceability group emphasized the need for enhanced digital traceability across the manufacturing chain, while the European Training and Translation teams advanced the delivery of updated training programs and multilingual content for the upcoming standard revisions.
• Discussions covered sustainability and product carbon reporting, with the IPC-1783/1783e task group refining CO₂e calculation methodologies, data quality scoring models, and early-adopter pathways to support industry-wide environmental reporting. 

EMERGING AND ASSEMBLY TECHNOLOGIES

The IPC-9206 Plastronics task group worked diligently to advance their newest development, which aims to tackle accelerated reliability testing for In-Mold Electronics (IME) and Molded Integrated Devices (MID). 

Also featured were assembly technologies for press-fit applications, including revisions to the IPC-9797 and IPC-HDBK-9798, which are critical to delivering high-reliability press-fit processes in manufacturing. 

SHAPING THE FUTURE OF IPC STANDARDS

Attending standards development committee meetings with our European members emphasized that we are a global organization, but we rely on the perspectives of our regional members to ensure that IPC Standards reflect the needs and realities of the entire electronics industry.

By Chris Mitchell, Vice President, Global Government Relations

This week, the Global Electronics Association submitted comments to the Office of the U.S. Trade Representative (USTR) as part of the upcoming joint review of the United States-Mexico-Canada Agreement (USMCA). This review comes at a pivotal moment for North American manufacturing and for the future of our shared electronics ecosystem.

Over the past few years, North America has reemerged as one of the world’s most dynamic manufacturing regions. The USMCA helped make that possible by creating a predictable, rules-based framework that allows companies to invest with confidence and build supply chains that are secure, transparent, and close to home.

Today, Mexico and Canada are not just trading partners; they are essential collaborators. In 2024, the United States imported more than $114 billion in finished electronics from Mexico, a 22% jump from the previous year. These aren’t low-value goods; they’re complex, high-tech systems built with U.S.-made components and engineering input. Each one supports jobs, innovation, and investment across the United States.

Canada brings its own strengths, including advanced R&D, semiconductor and aerospace expertise, and close integration with U.S. defense and clean-energy manufacturing. More than half of the electronics-related goods we import from Canada feed directly into American production. That’s not outsourcing — it’s a regional partnership that makes North America stronger and more competitive globally.

The 2026 USMCA review is an opportunity to reinforce that partnership. North American electronics manufacturing depends on seamless coordination across borders. Tightening rules of origin too far or applying new penalties too broadly could disrupt legitimate production and raise costs for U.S. companies investing in this region.

Our message is simple: protect compliant trade, close real loopholes, and maintain a stable environment that rewards companies building here in North America. We are urging policymakers to:

1. Finalize a bilateral trade framework with Mexico that preserves tariff-free access and recognizes its progress on supplier diversification and traceability.
2. Keep rules of origin workable for complex, high-value manufacturing.
3. Target enforcement precisely—stop circumvention without burdening legitimate production.
4. Treat Mexico and Canada as strategic partners, not low-cost suppliers, by investing jointly in workforce, innovation, and infrastructure.

The USMCA review is a chance to reaffirm that North America’s competitiveness depends on cooperation. When the U.S., Mexico, and Canada operate as a region, we all win: our industries grow, our supply chains become more secure, and our collective resilience deepens.

The Global Electronics Association and our 1,700 member companies stand ready to work with USTR and our partners in Mexico and Canada to strengthen the ecosystem that keeps innovation, jobs, and manufacturing leadership anchored in North America.

By Diana Radovan, sustainability policy director, Global Electronics Association

The Public Consultation initiated by the European Commission (EC) on the upcoming Circular Economy Act, expected at the end of 2026, closed November 6. The Global Electronics Association consolidated and submitted industry input on November 3, in the survey format provided by the EC and in the form of an initial position paper (to be refined with additional industry input throughout 2026). The Association thanks all those who responded to the detailed survey. 

The public consultation included the following parts:

•    Part 1 – Information about the organisation submitting comments
•    Part 2 – General Questions on the Circular Economy
•    Part 3 – Waste from electronic and electric equipment (WEEE)
•    Part 4 – Single-Market Barriers and Extended Producer Responsibility (EPR) Systems
•    Part 5 – Demand and Supply of Secondary Raw Materials
•    Part 6 – Improving Waste Management and Circular Processes
•    Part 7 – Open Comments and Trade Implications  

The Association strongly supports the EC’s efforts to accelerate the transition toward a circular economy through the upcoming Circular Economy Act, specifically:

•    The Association calls for balanced, innovation-driven approaches that enable scaling of secondary-material markets, harmonised regulatory frameworks, and proportionate obligations for small to medium-sized enterprises (SMEs). 
•    Key ingredients for long-term investment identified by the electronics industry: cross-sector collaboration, digitalisation of reporting systems, and predictable policy timelines. 
•    The Association additionally encourages Members of the European Commission to integrate competitiveness, supply-chain resilience, and climate-neutrality among the key objectives. 

We included recommendations in the following areas: EU-level coordination with a flexible national implementation scheme; handling waste from electronic and electrical equipment (WEEE), as well as waste and circular processes in general; overcoming single market barriers and dealing with EPR systems; proposals for the demand and supply of secondary raw materials.

The Association continues to advocate for and embody the international alignment of electronics standards and wide participation of the industry in rulemaking.

We remain open to dialogue as the Circular Economy Act continues to develop and welcome continued industry feedback on this topic. Contact me (DianaRadovan@electronics.org) for more information. 

Read our full position on the Circular Economy Act.
 

The Global Electronics Association on November 4 signed a Memorandum of Understanding (MOU) with the Korea Testing Laboratory (KTL) to strengthen cooperation in standardization, validation, certification, and professional training across the electronics industry. This partnership aims to enhance the reliability, quality, and global certification capabilities of electronic components and systems.

The signing ceremony took place in Seoul and was attended by Tae-Seung Song, head of KTL’s digital industry division; Jongwon Kwon, head of the Industrial AI Innovation Center; Sydney Xiao, president, East Asia, Global Electronics Association; and Tina Choi, Korea representative, Global Electronics Association.

Strengthening Industry Reliability and Global Competitiveness

South Korea has identified advanced manufacturing as a national priority—driving growth in sectors such as semiconductors, batteries, and automotive electronics. As manufacturing technologies evolve, the demand for reliability and consistency in electronic assemblies has intensified. Even minor process variations can affect performance and safety, underscoring the need for rigorous inspection standards and quality frameworks.

Through this partnership, the Global Electronics Association and KTL will help small and medium-sized enterprises (SMEs) improve product reliability, streamline certification, and expand access to international markets.

Key Areas of Collaboration

The collaboration will focus on:
•    Joint development of de facto standards for electronics manufacturing
•    Co-hosting training and education programs based on Global Electronics Association standards
•    Integrating reliability testing with international quality frameworks
•    Organizing standardization forums and industry knowledge exchanges

KTL will leverage this cooperation to advance reliability validation, strengthen global standard compliance, and cultivate industry professionals through certification and training initiatives.

Leaders’ Perspectives

“This collaboration marks an important step toward aligning the electronics industry’s quality, reliability, and testing technologies with international standards,” said Tae-Seung Song, head of KTL’s digital industry division. “KTL will continue to serve as a trusted standardization and certification body, supporting domestic enterprises in building global competitiveness.”

Sydney Xiao, president, East Asia, Global Electronics Association, added, “We are delighted to partner with KTL to promote international standardization and reliability across the global electronics industry. By combining our strengths in standards development and testing, we can help manufacturers enhance quality, optimize supply chains, and drive innovation.”

Next Steps

Following the MOU signing, KTL hosted the 2025 De Facto Standardization Forum and Conference on November 6 at the Grand InterContinental Seoul Parnas. In addition, the KTL Academy will hold an IPC-A-610 (CIS) certification course from November 11–14, offering limited free participation for industry professionals.
 

by Diana Radovan, sustainability policy director, Global Electronics Association

The Global Electronics Association recently joined a multi-stakeholder industry call to European policy makers for implementing an impactful omnibus package without delays. Businesses need legal certainty to operate effectively. We echo the recent call by EU political leaders for the swift conclusion and adoption of the Omnibus package on the Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive. The compromise proposal reached by the European Parliament’s JURI Committee on the Omnibus represents the most viable approach, at this stage of the process, with regards to the key aspects of the simplification of sustainability rules.

We encourage the European Parliament to take the necessary steps to secure the compromise in a stable manner, paving the way for a timely conclusion of the legislative procedure. We look forward to an efficient and constructive trilogue negotiation process that will deliver the legal certainty that companies are waiting for.

View the full statement.

Welcome to Industry Intelligence Insights, your monthly guide to the trends and data shaping the global electronics manufacturing landscape. I’m Thiago Guimarães, Director of Industry Intelligence at the Global Electronics Association, and I’m pleased to share this November edition.

Global manufacturing is showing signs of stabilization, but it’s far from uniform. In this issue, Chief Economist Dr. Shawn DuBravac explores a “patchwork recovery,” where Europe edges toward growth, Asia diversifies its momentum, and U.S. factories tread cautiously amid data disruptions.

You’ll also find the latest Book-to-Bill results, revealing continued resilience in North America’s PCB and EMS markets, as well as new insights from our Global Sentiment Survey and policy research on U.S.–Mexico manufacturing integration. Finally, don’t miss perspectives from our new European Director of Industry Intelligence, Christoph Solka.

Read on for a data-rich view of how the electronics sector is adapting to an uncertain, but opportunity-filled, global landscape. 

Thiago Guimarães 
Director of Industry Intelligence, Global Electronics Association

Market Analysis from Global Electronics Chief Economist Shawn DuBravac

Global manufacturing data released in the last month suggests a patchwork recovery taking shape. While signs of stabilization are emerging in parts of Europe and Asia, momentum remains fragile in the United States, where data gaps from the government shutdown have clouded the near-term outlook. Across major economies, the story is one of divergence: domestic demand is sustaining production in South and Southeast Asia, Europe is inching toward recovery, and China’s industrial base appears to be stabilizing, even as U.S. factories remain cautious. 

The labor market cooled further in August, with nonfarm payrolls adding just 22,000 jobs and the unemployment rate climbing to 4.3%. Manufacturing was particularly weak, shedding 12,000 jobs during the month. Survey data confirmed the slowdown, with the S&P Global flash Manufacturing PMI easing to 52 in September from 53 in August. Still, some resilience remains: durable goods orders surged 2.9% in August, though shipments dipped 0.2%, suggesting uneven demand momentum.

Recent U.S. manufacturing data paints a split picture, one of gradual stabilization beneath the surface but little clear momentum heading into year-end. The two headline national surveys diverged once again. The Institute for Supply Management’s (ISM) Manufacturing PMI fell to 48.7 in October, down from 49.1 in September, signaling contraction. New orders and employment components remained soft, though the prices index moved into expansion, a sign that input costs are on the rise. By contrast, the S&P Global (formerly IHS Markit) U.S. Manufacturing PMI held at a healthier 52.5, pointing to modest growth and hinting that smaller, more export-oriented firms may be faring somewhat better. The split between the ISM and S&P Global measures underscores an uneven manufacturing landscape, where demand and production remain under pressure even as pricing power and output in select industries improve.

At the regional level, the signals were equally mixed. The Chicago PMI remained firmly in contraction at 43.8, consistent with sluggish Midwest factory activity. The Philadelphia Fed’s Manufacturing Business Outlook index dropped to –12.8, indicating continued weakness. The Richmond Fed composite index came in at –4 and the Dallas Fed’s Texas Manufacturing Outlook registered –5.0, both showing modest declines. In contrast, the New York Fed’s Empire State Manufacturing index rebounded to 10.7, marking expansion, and the Kansas City Fed’s Tenth District index rose to 6, suggesting stabilization across parts of the Plains region. Together, the regional surveys imply that the industrial economy remains uneven but not deteriorating, with manufacturing conditions varying sharply by geography and industry.

Measures of consumer demand remain subdued: October consumer confidence (94.6) and final University of Michigan sentiment (53.6) both showed limited improvement, reflecting cautious household spending on durable goods.

Housing-related indicators, which feed directly into materials and equipment demand, are showing tentative stabilization. September existing home sales rose 1.5% month-over-month, and October housing starts, due November 19, will reveal whether construction activity is regaining traction. Broader growth indicators remain steady, with third-quarter GDP expanding modestly and inflation gradually aligning with the Federal Reserve’s target.

The backdrop to these releases is complicated by the ongoing U.S. government shutdown, which has delayed or disrupted several major economic reports. Many data series from the Census Bureau and Bureau of Economic Analysis have not been updated on schedule, including durable goods, retail sales, and portions of trade and construction spending. This lack of visibility creates additional uncertainty gauging trends in demand, pricing, and inventories. The data gap also makes it harder to confirm whether the manufacturing sector’s apparent stabilization reflects real improvement or simply missing information.  Factories appear to be operating in a holding pattern, waiting for clearer signals from consumer spending, input costs, and inventory restocking before committing to a stronger production rebound.

Europe’s October data offered a cautiously improved picture for manufacturing, with signs of stabilization emerging after months of weakness. The Eurozone’s manufacturing PMI for October came in right at 50, marking a return to neutral territory after persistent contraction earlier in the year. Output edged higher while new orders remained flat and employment continued to decline, suggesting that recovery is fragile but underway. The country-level breakdown showed clear divergence: Spain (52.1) and Greece (53.5) led with solid expansions, the Netherlands (51.8) and Ireland (50.9) maintained modest growth, while Germany (49.6) and France (48.8) stayed in mild contraction. Germany’s flash composite PMI for October confirmed that overall growth was driven mainly by services, even as manufacturing lagged slightly below the 50 mark.

Inflation and production data from earlier months continued to highlight the subdued industrial backdrop. The euro area’s August producer price index fell 0.3% month-on-month and 0.6% year-on-year, pointing to easing cost pressures for manufacturers but also weak pricing power. Industrial production for August, released in mid-October, remained soft, suggesting that the sector entered September with limited momentum. Still, broader macro indicators provided modest reassurance. Preliminary GDP for the third quarter rose 0.2% quarter-on-quarter, and headline inflation in October slowed to 2.1% year-on-year, with core inflation steady near 2.4%. Unemployment across the euro area also held at a historically low 6.3%, indicating that labor markets remain resilient despite sluggish factory activity.

Sentiment data echoed the theme of cautious optimism. The European Commission’s October surveys showed the Economic Sentiment Indicator climbing to 96.8 across the euro area, with improving employment expectations. In Germany, the ifo business climate index rose to 88.4 in October and the ZEW investor sentiment index jumped to 39.3, reflecting better expectations for the months ahead even as current conditions remain subdued. The European Central Bank held rates steady at 2% in its October 30 meeting and kept its forward guidance unchanged, signaling confidence that inflation is continuing to normalize without derailing growth.

In the United Kingdom, manufacturing activity offered one of the brighter notes. The October manufacturing PMI hit a one-year high as output returned to growth, helped by the restart of Jaguar Land Rover production and improved supply conditions. European manufacturing readings suggest that while the sector remains uneven across countries, the combination of easing inflation, firmer sentiment, and steady employment is helping the region move closer to a fragile but tangible industrial recovery.

China’s manufacturing sector sent a mixed but increasingly nuanced message in the last month. The latest official manufacturing PMI from the National Bureau of Statistics slipped to 49.0, down from 49.8 in September, signaling renewed contraction. Beneath the headline, production and new orders both edged lower, while new export orders dropped sharply to 45.9, underscoring how weaker global demand and tariff uncertainty continue to weigh on factory activity. Supplier delivery times held steady at 50.0, suggesting little immediate pressure on supply chains.

In contrast, the private RatingDog China General Manufacturing PMI (S&P Global) painted a somewhat brighter picture. It held in expansion territory at 50.6, though that was down from 51.2 a month earlier. Employment in smaller firms ticked up slightly, even as new export orders softened, suggesting domestic conditions might be stable even while external headwinds persist.

Hard activity data released in the last month reinforces the sense of tentative recovery beneath the surface. Manufacturing value-added rose 7.3% year-over-year, outpacing the 6.5% gain in total industrial production. High-tech manufacturing led the way, climbing 10.3% from a year earlier, while the export delivery value increased 3.8%, signaling that some sectors continue to find traction abroad despite global uncertainty. Price indicators pointed to easing deflationary pressure, with the Producer Price Index down 2.3% year-over-year but unchanged month-to-month, an early sign that factory margins may be stabilizing after months of being squeezed.

Profitability data added to that more constructive tone. Industrial profits rose 3.2% year-to-date and an even stronger 9.9% within manufacturing. September alone saw a 21.6% surge in profits compared with a year earlier, the best monthly result in nearly two years, driven by gains across several manufacturing subsectors. Fixed-asset investment in manufacturing increased 4% in the first nine months of the year, buoyed by robust spending on equipment and instruments, which jumped 14%, and especially strong investment in autos and general-purpose machinery.

External demand provided another layer of support. September’s trade figures showed exports rising 8.3% in U.S. dollar terms. Meanwhile, capacity utilization in manufacturing remained relatively stable at 74.8%, highlighting persistent slack but no worsening in overcapacity. In a key upstream segment, the steel industry PMI improved to 49.2 from 47.7, and new export orders hit a 20-month high of 54.3, pointing to firmer momentum in heavy industry.

Taken together, the October data portray a manufacturing sector still feeling the weight of global uncertainty but showing early signs of underlying stabilization. Output and profits are improving, deflationary pressures are easing, and investment is holding steady, suggesting that while growth remains uneven, China’s industrial base is gradually regaining its footing after a prolonged period of strain.

Across Asia, October’s manufacturing and inflation data reveal a region moving at multiple speeds, with stronger domestic demand in Southeast Asia offsetting a softer backdrop in the major North Asian economies. Japan’s manufacturing PMI fell further into contraction at 48.2, signaling ongoing weakness in factory sentiment. Yet industrial production in September surprised to the upside, rising 2.2% month-over-month and 3.4% year-over-year, driven by autos and electronic components. The Ministry of Economy, Trade and Industry described conditions as “fluctuating indecisively,” reflecting the uneven recovery. Retail sales grew just 0.5% from a year earlier, underscoring tepid consumer spending, while Tokyo’s October CPI came in at 2.8%, serving as an early indicator that inflation remains above target but stable. South Korea’s picture was similar: its October manufacturing PMI slipped back into contraction at 49.4, even as exports jumped 3.6% year-over-year, led by a 25% surge in semiconductors and a dramatic 131% increase in ship deliveries. Industrial production in September climbed 12.1% in manufacturing and 6.7% overall, pointing to solid underlying momentum. Inflation accelerated modestly to 2.4%, slightly higher than expected but still manageable.

Elsewhere in North Asia, Taiwan’s manufacturing PMI improved slightly to 47.7, indicating that contraction is easing. The island’s September industrial production surged 16.9% year-over-year, confirming that the technology rebound remains a key growth engine. Inflation data for October are pending, though price pressures remain contained. In South and Southeast Asia, momentum was notably stronger. India’s manufacturing PMI rose to 59.2, among the highest globally, supported by robust domestic demand. The Reserve Bank of India kept its policy rate at 5.50% in its October meeting and raised its FY26 GDP forecast to 6.8% while projecting inflation to moderate to 2.6%. Industrial production was up 4% in August, with September’s report due mid-November, and inflation remains at multi-year lows. In Singapore, October’s manufacturing PMI held at 50.0, with the electronics index slightly stronger at 50.4. Industrial production surged 16.1% year-over-year and 26.3% month-over-month, boosted by biomedical manufacturing, while inflation remained subdued at 0.7% headline and 0.4% core.

Thailand, Vietnam, Indonesia, and the Philippines provided the brightest spots. Thailand’s PMI jumped to 56.6, its fastest pace in nearly two years, as output rebounded and new orders strengthened. Vietnam’s PMI rose into the 54–55 range, signaling strong expansion and improved business sentiment, supported by rising exports and a projected annual trade turnover above $900 billion. Indonesia’s PMI registered 51.2, marking its third straight month of expansion, reflecting resilient domestic demand. The Philippines returned to growth as well, with its PMI at 50.1. Across the region, inflation dynamics were diverse: Korea saw a mild re-acceleration, Japan’s Tokyo core remained near 3%, and Thailand continued to post deflation at –0.7% year-over-year.

Taken together, the global picture is one of tentative balance rather than synchronized strength. Manufacturing activity is no longer uniformly contracting, but neither is it expanding with conviction. Divergent regional trends, including North Asia’s subdued output, Europe’s early stabilization, and Southeast Asia’s domestic-led growth, highlight how uneven the industrial landscape has become. Until global demand strengthens and data disruptions clear, the manufacturing recovery will likely remain fragile, characterized more by resilience and adjustment than acceleration. 
 

Book to Bill

PCB: North American PCB Industry Posts Double-Digit Year-to-Date Gains in Shipments and Bookings 

North American PCB production remained strong in September, with year-to-date shipments up 10.5% and bookings up 13.1% compared to last year. The book-to-bill ratio held at 0.92 as manufacturers cleared backlogs and met sustained demand from AI-driven data center investments, signaling steady momentum heading into Q4. 

EMS: EMS Market Steadies in September, Setting Stage for Continued Growth 

North America’s EMS sector stabilized in September, with shipments edging up 1.1% month over month and the book-to-bill ratio holding strong at 1.31. Year-to-date bookings rose 0.7%, signaling healthy, sustained demand as production and supply conditions continue to normalize heading into Q4.

Global Sentiment

The Current Sentiment of the Global Electronics Manufacturing Supply Chain

The Global Electronics Association’s October 2025 survey reveals a sector navigating mixed signals as it enters the final quarter of the year. 

Recent Reports

Powering the U.S. Economy: The Economic Reach of Electronics Manufacturing 

Even as global growth cools and trade patterns shift, this new analysis from the Global Electronics Association shows that U.S. electronics manufacturing remains one of the most powerful drivers of economic resilience. 

Policy Brief — From Risk to Resilience: Why Mexico Matters to U.S. Manufacturing 

The United States and Mexico share one of the world’s most productive and strategically aligned manufacturing partnerships. This report explores how deeply integrated electronics supply chains between the two nations drive U.S. industrial strength, job growth, and national security.  

Articles 

How Insight Becomes Impact by Chris Mitchell and Christoph Solka

Christoph Solka, the Global Electronics Association’s new Director of Industry Intelligence in Europe, is bringing data to life by connecting research with real-world outcomes. Through market analysis, strategic insight, and engagement across Europe, he’s helping manufacturers benchmark performance, adapt to disruptions, and seize new opportunities in a rapidly evolving industry.  

Cut to the Chase by Dr. Shawn DuBravac

As the Fed begins easing interest rates, manufacturers are entering a new phase of normalization that will demand tighter financial discipline, smarter capital allocation, and careful risk management. DuBravac outlines ten strategies, from recalibrating hurdle rates to hedging rate risk, to help firms navigate higher-for-longer conditions and position for growth in 2026. 
 

Upcoming Events:

• November 18–21, 2025 — Productronica, Munich, Germany: Visit the Global Electronics Association at Stand A1.321, where IPC International Inc. (IPC) will be presenting in forums and hosting its annual hand-soldering competition, and Christoph Solka will deliver industry insight at its booth.
• December 5, 2025 — EMS & Beyond 2025, Tallinn, Estonia: The Global Electronics Association’s Christoph Solka and Anastasia Ederer will deliver key presentations on “The Difficult Developments in the EMS Industry in Europe” and “The EMS Industry in the Baltic States,” offering data-driven insight into regional market dynamics and emerging challenges.
• March 16–19, 2026 — APEX EXPO, Anaheim, California: The Global Electronics Association’s flagship event will feature keynote addresses from IBM Quantum’s David Lokken-Toyli, futurist Zack Kass, and Association President & CEO John W. Mitchell, offering bold insights on quantum computing, artificial intelligence, and the future of global electronics innovation. Register HERE