New IPC Video Calls Attention to Dramatic Workforce Challenges Facing Electronics Industry

Nov 07, 2024

Today, IPC released a new offering in its series of short “explainer videos,” this one tackling the critical labor shortage faced by the electronics manufacturing industry. The United States is expected to have an unprecedented 2.1 million unfilled jobs in manufacturing by 2031. More than two-thirds of IPC’s U.S. members report that an inability to find and retain skilled workers is limiting their growth and competitiveness. 

The video shares details from IPC’s recent white paper outlining a comprehensive strategy to tackle these workforce issues. The white paper, “Building Electronics Better: A Plan to Address the Workforce Challenges Facing the Electronics Manufacturing Industry,” targets immediate needs and long-term growth by fostering a skilled, adaptable, and motivated workforce. This multi-faceted approach defines ways to establish partnerships among educational institutions, businesses, government agencies, and non-profits to ensure a steady flow of skilled workers with defined career pathways. 

With more than 145,000 people credentialed annually, IPC has been the global leader in electronics workforce and education for more than 50 years. The video calls on others to join us in this effort. Government can prioritize electronics manufacturing programs and partnerships; businesses should adopt IPC’s growing suite of career pathways; and communities can offer workforce education opportunities. 

IPC is promoting the video to targeted audiences via its social media accounts, newsletters, magazines, and other channels. IPC members and partners are invited to help IPC spread the word by sharing the new video with professional networks and elected officials. 

 

 

Statement on U.S. Election Results

John W. Mitchell, IPC president and CEO, issued the following statement on the United States’ election results:

“On behalf of thousands of IPC members across the United States, we congratulate President-elect Donald Trump on his election, along with all of the newly elected and re-elected members of Congress. We look forward to working with the new Administration and Congress to advance policies that promote innovation, investment, and resilience over the coming decade. 

“We worked with the 2016-2020 Trump administration to raise awareness of the electronics industry’s importance to national and economic security, and we will continue to do so over the coming years. Electronics are at the heart of the modern economy, and the U.S. Government needs to overcome decades of neglect and do more to ensure the industry’s long-term success.” 

More information on IPC’s policy priorities can be found here: Advocating for the Global Electronics Industry. 

Sustainability – A View from the C-Suite

Oct 31, 2024
| By Kelly Scanlon

By Kelly Scanlon, IPC lead sustainability strategist

Many company executives, whether in the electronics industry or other manufacturing industry sectors, have sustainability at the top of their minds and agendas. Defining what it means for their company to be sustainable and setting out and achieving goals related to sustainability has become a critical part of CEO leadership actions.

Recently, John Mitchell, IPC’s President and CEO, asked executives Greg Maxwell, Northrop Grumman Corporation, and Tom Edman, TTM Technologies, about how they prioritize sustainability in their companies. In a series of videos, we learn about their challenges—and solutions—for issues such as reporting and disclosure of energy, water, and chemical data, workforce development and retention, regulatory obligations, supplier demands, and customer needs. It’s not a quest for what to do but how to do it. 

These include evaluating the energy needs of their facilities, ensuring workers are keeping up with regulatory obligations, and meeting their customers’ needs while also meeting their own needs.

Hearing from executive decision makers about their successes, their challenges, their ambitions, and their worries provides all of us – including engineers and manufacturing line workers – with a path forward and a set of best practices that we can learn from so that we can all build electronics better. 

VIDEO LINKS:

IPC wants to help you broadcast your best practices and tell your stories about how you got to where you are today. Please let us know what you think about the videos in the comment section. 

New IPC Video Calls on Europe to Adopt “Silicon-to-Systems” Approach

Oct 30, 2024

IPC just released another video in its series of short explainers supporting its chips-related advocacy campaign – this one focuses on the need to take a complete “silicon to systems” approach to investing in Europe’s electronics industry. 

With fresh animation and graphics, the video takes a common sense approach to explaining that electronic systems are at the heart of many critical products and services from cars to computers, phones, and medical devices. With so much at stake, focusing on only one part of the electronic system – semiconductor chips – isn’t enough to ensure Europe’s innovation, resilience, and security.  Instead, the EU should take a comprehensive, “silicon-to-systems” approach to the European Chips Act and to its digital and green transitions, the video says.  

In Brussels and around the world, IPC is urging policymakers to take a broad approach to electronics manufacturing, including investing in R&D and manufacturing capacity for printed circuit boards (PCBs), IC substrates, and advanced packaging technology. IPC has called for establishing a continent-wide Electronics Manufacturing Strategy; enacting tax incentives for purchases of domestic PCBs; and developing more skilled workers and career pathways in electronics in the EU. 

Earlier this year, IPC released a U.S.-focused video focused on the need for a “silicon to systems” approach to electronics manufacturing. IPC is promoting the videos through its social media accounts, newsletters, magazines, and other channels. IPC members and partners are invited to help IPC spread the word by sharing the U.S. or European video with professional networks, partners and elected officials. 

 

 

Legal Risks Related to Compliance with Cybersecurity Maturity Model Certification (CMMC)

REGISTER
Date
-

IPC is teaming up with the U.S. Partnership for Assured Electronics (USPAE) to offer an expert-led discussion on the legal risks related to compliance with the Cybersecurity Maturity Model Certification (CMMC). This discussion will be held on November 19, 2024 at 1pm ET and will be led by Eric Crusius, a Partner at Holland & Knight. 

Earlier this month, the DoD published its final rule on CMMC. CMMC is designed to ensure that federal contractors are taking appropriate safeguards on their nonfederal systems to protect sensitive unclassified information. In complying with CMMC, federal contractors and subcontractors face risk under the False Claims Act (FCA). The FCA can be used to pursue cybersecurity-related fraud by entities that do business with the DoD and do not comply with the CMMC standards.  

Date: November 19, 2024

Time: 1:00 – 2:00 PM EST

Registration: Click here

 

Please note that this meeting is for IPC members and USPAE alliance partners only. Moreover, this event is intended for DoD contractors and subcontractors. If you have questions about the event, please contact Jim Will at JimWill@uspae.org.

REGISTER

Electronics Industry Sentiment Remains Subdued in October

IPC releases October 2024 Global Sentiment of the Electronics Manufacturing Supply Chain Report

Industry sentiment in the electronics sector improved marginally in October after a sharp decline in September. Improvements in demand and costs combined to help lift sentiment according to IPC’s October Sentiment of the Global Electronics Manufacturing Supply Chain Report. 

 

The Demand Index rose 1.3 percent in October, but demand sentiment remains muted for the second consecutive month. The Backlog Index, already in contraction, dropped another two points to its lowest level in a year. Capacity Utilization fell into contractionary territory, while the New Orders Index remained there for the second consecutive month. The Shipment Index rose from an all-time low last month, bouncing back into expansionary territory. 

 

In response to special questions on interest rate cuts in Europe and the United States, electronics manufacturers expect interest rate cuts in Europe and the United States to have a moderate to minimal impact on the industry overall, with the greatest effect likely on capital investment, financing, and sales growth.

 

According to Shawn DuBravac, IPC chief economist and report author, industry outlook remains positive this month despite cooling demand sentiment. “Despite some easing in cost pressures, the outlook for costs actually increased in October as more manufacturers reported an expectation for higher labor costs in the coming months.”

 

Additional survey data show:

  • Half (50 percent) of electronics manufacturers are currently experiencing rising labor costs, with nearly two-fifths (37 percent) reporting increased material costs. At the same time, profit margins, ease of recruitment, backlogs, shipments, and orders are presently declining.
  • Over the next six months, electronics manufacturers expect labor costs to remain high, while ease of recruitment, backlogs, and profit margins are likely to remain challenging. 
  • Electronics manufacturers in APAC expect backlogs to decline more so over the next six months when compared to firms operating globally. 

These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between September 16 and September 30, 2024.

Read the full report. 

Economic Outlook 2025

REGISTER FOR LIVE EVENT
Date
-

In the face of numerous challenges, the global economy has demonstrated remarkable resilience, especially in regions like South Asia and the United States, where growth has exceeded expectations. As we look to 2025, vulnerabilities remain. Central banks are easing rates, yet the pace varies significantly across regions, casting uncertainty over economic activity. Geopolitical tensions and persistent inflationary pressures are also key concerns that could influence monetary policy and impact markets.

The global growth landscape continues to present a mixed outlook, with downside risks amid lingering inflation pressure and geopolitical uncertainties, such as escalating tensions in Ukraine. In Europe, certain economies continue to face headwinds, and in Asia, China faces its own challenges. However, opportunities for growth in the electronics industry persist as sectors like defense and renewable energy remain resilient in the face of broader manufacturing slowdowns.

Join IPC on November 19 at 4:00 pm EST for a free live event, Economic Outlook 2025, led by IPC Chief Economist Shawn DuBravac. This session is an opportunity to stay informed about the latest economic trends and prepare for the coming year with expert insights.

What You Will Gain:

  • Global Economic Snapshot – Obtain a comprehensive analysis of the current global economic outlook, with a focus on risks and opportunities to watch in 2025.
  • Central Bank Perspectives – Understand how regional inflation trends and central bank policies will shape interest rates, offering insights into likely monetary shifts.
  • Regional Growth Trends – Explore how diverse economic growth trajectories in regions like South Asia, the U.S., Europe, and China could impact global business strategies.
  • Sector-Specific Insights – Learn which sectors remain resilient amidst economic uncertainty and how this could influence strategic investments.
Region
Global
Online Event

3000 Lakeside Dr.
Suite 105N
Bannockburn, IL 60015
United States

Online Event

Online Event
3000 Lakeside Dr.
Bannockburn, IL 60015
United States

REGISTER FOR LIVE EVENT

North American PCB Industry Shipments Down 24.1 Percent in September

IPC releases PCB industry results for September 2024

IPC announced today the September 2024 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.08.

Total North American PCB shipments in September 2024 were down 24.1 percent compared to the same month last year. Compared to the preceding month, September shipments were down 23.8 percent.

PCB bookings in September were down 4.4 percent compared to the same month last year. September bookings were down 2.8 percent compared to the preceding month.

“The North American PCB book-to-bill rose notably in September, but this rise masks overall weakness in the sector. The decline is primarily driven by a steep decline in shipments that outpaced a drop in orders,” said Shawn DuBravac, IPC’s chief economist. “Year-to-date trends highlight a negative trajectory in shipments alongside a narrowly positive trend in orders.”

September 2024 PCB book to bill ratio chart
September 2024 PCB book to bill ratio chart 2

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.

North American EMS Industry Shipments Up 10.3 Percent in September

IPC releases EMS industry results for September 2024

IPC announced today the September 2024 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.26.

Total North American EMS shipments in September 2024 were up 10.3 percent compared to the same month last year. Compared to the preceding month, September shipments up 2.0 percent.

EMS bookings in September increased 19.6 percent year-over-year and decreased 10.8 percent from the previous month.

“The North American EMS book-to-bill ratio remains near the midpoint for the year, underscoring stable demand within the sector,” said Shawn DuBravac, IPC’s chief economist. “While September orders reflect a dip from the previous month, they indicate sustained resilience in bookings.”

September 2024 EMS book to bill ratio chart

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.

Subscribe to