Electronics manufacturers are facing rising material and labor costs according to the Global Electronics Association’s June Sentiment of the Global Electronics Manufacturing Supply Chain Report. The Material Costs Index is above its long-term average and has not been this high since March 2023.

Despite market volatility, product demand shows resilience, rebounding as strongly from late-2024 lows. Orders, backlogs, capacity utilization and shipments are each strongly in expansion territory.

Over the next six months, electronics manufacturers expect material and labor costs to remain high, while ease of recruitment is expected to remain challenging. Demand, however, will remain intact. Manufacturers anticipate relative stability in orders, backlogs, shipments and capacity utilization, suggesting slow but steady operations amid headwinds.

Shawn DuBravac, Ph.D., Global Electronics Association’s chief economist and report author noted, “Bottom line, as the electronics manufacturing supply chain enters the second half of 2025, it will confront stubborn input inflation, but a solid demand outlook. Tight margins, persistent hiring challenges, and targeted capacity shifts will keep cost control and operational agility at the center of decision‑making throughout the remainder of the year.”

Additional survey data show:

• Global manufacturers, along with those in North America, are more likely to expect a decline in profit margins compared to firms in Europe and APAC.
• Supplier inventory is rising more for electronics manufacturers in APAC than those in North America, Europe, and among those operating globally (multiple countries).
• Over the next six months, orders are expected to decline more for firms operating globally than for those in Europe. 

These results are based upon the findings of the Global Electronics Association’s Current State of Electronics Manufacturing Survey, fielded between May 14 and May 31, 2025.

Read the full report.

The Global Electronics Association announces the release of IPC-8911, Requirements for Conductive Yarns for E-Textiles Applications. This first-of-its-kind global standard establishes a clear framework for classifying, designating, and qualifying conductive yarns—helping to address longstanding challenges in supply chain communication, product testing, and material selection within the growing e-textiles industry. The Global Electronics Association retains the IPC brand for the industry’s standards and certification programs, which are vital to ensure product reliability and consistency. 

Developed by the IPC Conductive Yarns for E-Textiles Test Methods Task Group, IPC-8911 defines key yarn categories, introduces a standardized designation system, and includes qualification and conformance requirements tailored to conductive yarns. The standard is supported by eight new IPC-TM-650 Test Methods, designed to evaluate performance characteristics such as conductivity, mechanical durability, and resistance to environmental and chemical exposures.

The task group included global experts from both textile and electronics sectors, with leadership from Joe Geiger of Bally Ribbon Mills and Sahar Rostami of Meta.

“This standard gives manufacturers tools to know what to ask for when ordering yarns and helps yarn suppliers understand the electrical needs their products must meet,” said Geiger. “It brings clarity to the entire process—acting almost like a recipe for building reliable e-textile systems.”

Rostami added, “IPC-8911 eliminates the guesswork. It gives developers, researchers, and engineers a common framework and accelerates R&D by reducing the need to reinvent the wheel when selecting and testing conductive yarns.”

By clearly defining the performance characteristics and communication protocols for conductive yarns, IPC-8911 supports faster product development, more consistent sourcing, and improved reliability for all e-textiles product applications, from consumer to medical to aerospace and defense.

The release of IPC-8911 marks a critical step in advancing e-textile integration—establishing conductive yarns as true electronic building blocks while supporting better collaboration between yarn suppliers, product developers, and OEMs and brands.

To purchase IPC-8911, visit the Global Electronics Association Store. To learn more or join the IPC Conductive Yarns for E-Textiles Test Methods Task Group and shape future updates, visit the committee home page.

Today, the Global Electronics Association – the voice of the electronics industry – launched its Circularity Resource Hub. The Hub provides a centralized home for the latest industry standards, best practices, and resources to accelerate electronics’ sustainable and circular evolution. 

Mounting pressure for circularity in electronics is shaping the industry’s next era of innovation. Circularity enables compliance with global regulations like Right to Repair and Ecodesign while improving companies’ bottom lines and supply chain resilience. 

Designed for use across the electronics industry, the Circularity Resource Hub curates unified, actionable strategies to scale circularity for engineers, manufacturers, suppliers, and decision-makers, providing sustainable solutions that lower material and operational costs to directly improve bottom lines.The Hub is the latest resource to come from Evolve, an initiative from the Global Electronics Association (formerly IPC) supporting industry sustainability efforts. 

Key resources in the Hub include:

• In-depth guidance on how to design and embed circularity throughout every process of the electronics life cycle

• Practical tools and frameworks to support implementation

• A comprehensive guide for implementing practices to reduce e-waste

• Industry standards that enable repairability and rework, circularity, and more

Content will be updated continually to provide resources that address the challenges manufacturers face in adopting circular practices.

In tandem with the Circularity Resource Hub, the Global Electronics Association unveiled a new report, Circularity for Electronics: Proceedings Report that captures industry stakeholder insights and zeroes in on key challenges, opportunities, and solutions.  

“As demand for electronics continues to grow, so too does our responsibility to design and manage products more sustainably. Circularity is about more than reducing waste, it’s about unlocking efficiency, innovation, and resilience across the entire industry,” said Dr. John W. Mitchell, Global Electronics Association president and CEO. “We see that circularity is essential for sustainability and for the long-term competitiveness and growth of our industry.” 

“Faced with sourcing uncertainty and pricing volatility, the electronics ecosystem has an opportunity to embrace circularity to reduce risk – and minimize its life cycle impacts in the process,” said Dr. Kelly Scanlon, Global Electronics Association lead sustainability strategist. “By centralizing best-in-class resources, we support the industry’s sustainable transformation.”  

Visit the Circularity Resource Hub now at electronics.org/evolve/circularity

to explore how your organization can lead, comply, and thrive in the circular economy, even in uncertain times. 

IPC announced today the May 2025 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.43.

Total North American EMS shipments in May 2025 were down 9.3 percent compared to the same month last year. Compared to the preceding month, May shipments were down 4.2 percent. May’s year-to-date (YTD) shipments decreased by 2.3% year-over-year (YOY).

EMS bookings in May increased 5.0 percent year-over-year and decreased 6.0 percent from the previous month. May’s YTD bookings increased by 1.4% compared to the same period last year.

“North American EMS bookings showed modest year-over-year growth in May, while shipments continued to trail 2024 levels. Demand continues to strongly outpace current production, a dynamic that should support stronger shipment growth in the months ahead,” said Shawn DuBravac, IPC’s chief economist. “Although monthly bookings have now declined for two consecutive months, the overall trend points to resilient demand across the EMS sector.”

Detailed Data Available

Companies that participate in IPC’s North American EMS Statistical Program have access to detailed findings on EMS sales growth by type of production and company size tier, order growth and backlogs by company size tier, vertical market growth, the EMS book-to-bill ratio, 3-month and 12-month sales outlooks, and other timely data.

Interpreting the Data

The book-to-bill ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period from companies in IPC’s survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next three to twelve months. A ratio of less than 1.00 indicates the reverse.

Year-on-year and year-to-date growth rates provide the most meaningful view of industry growth. Month-to-month comparisons should be made with caution as they reflect seasonal effects and short-term volatility. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month might not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in both bookings and shipments to understand what is driving changes in the book-to-bill ratio.

IPC’s monthly EMS industry statistics are based on data provided by a representative sample of assembly equipment manufacturers selling in the USA and Canada. IPC publishes the EMS book-to-bill ratio by the end of each month.

IPC announced today the May 2025 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.03.

Total North American PCB shipments in May 2025were up 21.4 percent compared to the same month last year. Compared to the preceding month, May shipments were up 7.1 percent. May's year-to-date (YTD) shipments increased by 7.9% year-over-year (YOY).

PCB bookings in May were up 9.5 percent compared to the same month last year. May bookings were down 12.9 percent compared to the preceding month. May’s YTD bookings increased 18.3% compared to the same period last year.

“North American PCB shipments continued their upward trajectory in May, reflecting strong demand and improving supply chain dynamics. While bookings slowed from the previous month, indicating some near-term cooling in new orders, year-over-year growth remains solid. Demand is largely keeping pace with supply, pointing to a stable near-term outlook,” said Shawn DuBravac, IPC’s chief economist. 

Detailed Data Available

Companies that participate in IPC’s North American PCB Statistical Program have access to detailed findings on rigid PCB and flexible circuit sales and orders, including separate rigid and flex book-to-bill ratios, growth trends by product types and company size tiers, demand for prototypes, sales growth to military and medical markets, and other timely data.

Interpreting the Data

The book-to-bill ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period from companies in IPC’s survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next three to twelve months. A ratio of less than 1.00 indicates the reverse.

Year-on-year and year-to-date growth rates provide the most meaningful view of industry growth. Month-to-month comparisons should be made with caution as they reflect seasonal effects and short-term volatility. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month might not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in both bookings and shipments to understand what is driving changes in the book-to-bill ratio.

IPC’s monthly PCB industry statistics are based on data provided by a representative sample of both rigid PCB and flexible circuit manufacturers selling in the USA and Canada. IPC publishes the PCB book-to-bill ratio by the end of each month.