By Diana Radovan, Sustainability Policy Director, Global Electronics Association

Key Summary

• Sustainability Week Europe 2025 highlighted shared challenges across diverse sectors, emphasizing collaboration over polarization.
• Speakers stressed that circularity succeeds only when supported by systems thinking, scalable processes, and clearer business-focused terminology.
• A major theme was reframing sustainability as a business proposition, not just a moral one, especially amid regulatory complexity and competitiveness pressures.
• Participants called for smarter, more practical regulations and stronger alignment between sustainability goals and business outcomes.
• The event underscored the urgency of action to support Europe’s digital and green transition.

Diverse sectors came together in Amsterdam on Oct 6-7 to discuss hot topics around sustainability, at the intersection of regulation, strategy, and competitiveness. Despite the diversity of industries and stakeholders present in the room (AI startups, investors, electronics, clean energy, fashion, pharmaceuticals, philanthropies, etc.), sustainability challenges and opportunities shared a similar vocabulary, and it was easy to find common ground and learn from each other’s experiences. Following the interesting roundtable discussions at the Chief Sustainability Officers (CSO) club on Monday, October 6, plenary panels, interviews, and networking sessions took place the next day, including a talk by and a conversation with the Mayor of Amsterdam, Femke Halsema. 

My key takeaways from the event can be grouped into three main areas: 

Focus on collaboration and real impact

We cannot afford to quarrel over symbolic issues, we need to be pragmatic, by addressing the things that really matter, and avoid polarised speech. We have to work together in Europe and internationally

Circularity strategy and terminology

Circularity works if appropriate systems are put in place from the very beginning. In this context, systems thinking is key. Circularity fails in a linear world. Efficiency and scale up are possible if approached with a sustainability mindset. More secondary raw materials are necessary in the products we are building. In addition, those of us who are sustainability professionals may need to refine our terminology when pitching our circularity business case to CEOs, because ‘circularity’ does not necessarily sound like business growth: circularity can be seen and framed as an important business opportunity, involving less waste and less resources. 

Sustainability as a business proposition

Nowadays, in light of competitiveness challenges and geopolitical movements, sustainability professionals need to build a business case, not only a moral case, in their organizations, in order to be effective in their efforts. Many participants were of the opinion that smart regulations can be an opportunity for businesses to measure risks and build a better business. Nonetheless, sustainability isn’t always driven by regulation and sustainability regulations don’t always mean more sustainability, sometimes they just mean more reporting. Sustainability regulations often remain, however, impractical and fragmented, and more needs to be done on the path towards their improvement, which is what we, at the Global Electronics Association, continue to advocate for. 

Panelists and participants may have had, at times, different perspectives in their approach to sustainability and reaching sustainability goals, but ultimately, what I heard at this event was a very pragmatic call-to-action, and moving away from older, idealistic views on sustainability. We cannot be sustainable and support the digital and green transition if we ignore the high regulatory reporting burden and the acute need to link sustainability efforts to business outcomes. 

We need to act now, not later. 

To learn more about the event, contact me at DianaRadovan@electronics.org. 

Key Summary

• The Fed cut rates by 25 basis points while inflation remains above target, signaling a slow path back to 2 percent.
• U.S. labor markets cooled further with weak manufacturing hiring and mixed demand indicators.
• Europe’s manufacturing PMI dipped into contraction and the ECB held rates steady as industrial output showed modest improvement.
• China posted mixed PMI results but strong industrial profit growth, supported by targeted financing.
• North American PCB sales increased 12.8 percent in August while EMS shipments declined slightly.
• September sentiment shows rising costs but expectations for improving productivity and utilization.
• New reports examine electronics manufacturing software ecosystems and the transatlantic tariff agreement’s competitiveness impact.
 

Welcome to Industry Intelligence Insights, your monthly guide to the trends shaping global electronics manufacturing. I’m Thiago Guimarães, Director of Industry Intelligence at the Global Electronics Association.

This month’s market analysis from Chief Economist Shawn DuBravac, unpacks new rate cuts and shifting monetary paths in Europe and Asia.

We also highlight new Book-to-Bill data showing steady EMS demand and mixed PCB activity, and the latest Global Sentiment Report, where firms report persistent cost pressures but improving productivity and utilization ahead.

Plus, explore two new reports: The Software Ecosystem Powering Electronics Manufacturing and The New Transatlantic Trade Agreement, which examine how technology and trade are reshaping competitiveness across regions.

Read on for the insights driving the industry forward.

Thiago Guimarães 
Director of Industry Intelligence, Global Electronics Association

Market Analysis from Global Electronics Chief Economist Shawn DuBravac

The Fed’s long-anticipated rate cut finally arrived. Policymakers trimmed rates by 25 basis points in September, taking the federal funds range to 4.00% to 4.25%. Chair Jerome Powell said risks look more balanced and more cuts are likely in the months ahead. The aim is to give growth a nudge while keeping inflation expectations anchored. But that inflation fight is not over. August CPI ran at 2.9% year over year, with core at 3.1%. Both ticked up from July, a reminder that getting all the way back to 2% will take time.

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.

Across the Atlantic, the European Central Ban kept rates unchanged in September, leaving the deposit rate at 2% and the main refi at 2.15%. With euro area inflation at 2.1% in August, officials sounded comfortable but noncommittal about what comes next.
Manufacturing conditions showed renewed weakness in Europe as the HCOB flash Manufacturing PMI slipped back below the 50 mark in September to 49.5, signaling contraction. Production data painted a more nuanced picture. Industrial output in July rose 0.3% month-over-month, driven by durable goods.

China’s manufacturing sector continued to show divergent signals. The official NBS manufacturing PMI came in at 49.8 in September, a sixth straight contraction but slightly better than August. The private Caixin gauge told a different story, rising to 51.2, its quickest pace since March. The PBOC left loan prime rates unchanged in September, while Beijing mapped out roughly ¥500 billion in targeted financing to speed up investment projects. One clear positive was profits. Industrial earnings jumped 20.4% year over year in August, lifting year-to-date profits to a small gain after earlier declines.

Around the rest of Asia, the Asian Development Bank nudged its 2025 growth outlook for developing economies down to 4.8%, citing tariffs and trade uncertainty. Japan struggled, with August industrial output down 1.2% and the au Jibun Manufacturing PMI slipping to 48.4 in September. The Bank of Japan held its policy rate at 0.5% and kept a close eye on wages and prices. India remained the regional standout. GDP grew 7.8% year over year in the April to June quarter, and manufacturing stayed strong even as the HSBC/S&P Global PMI eased to a still-hearty 58.5 in September.
 

Book to Bill

PCB: North American PCB Industry Sales Up 12.8 Percent in August

The Global Electronics Association has announced the August 2025 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 0.98.

EMS: North American EMS Industry Shipments Down 1.4 Percent in August

The Global Electronics Association has announced the August 2025 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.26.

Global Sentiment

The Current Sentiment of the Global Electronics Manufacturing Supply Chain September 2025

According to the September 2025 Global Sentiment Report, firms report rising material and labor costs that are straining margins and slowing hiring, even as demand and order flow remain solid. Over the next six months, executives expect cost pressures to persist but anticipate gradual improvement in activity, utilization, and margins as pricing resets and productivity gains take hold.

Recent Reports

The Software Ecosystem Powering Electronics Manufacturing

In November 2024, the Global Electronics Association surveyed EMS and OEM companies to gain a deeper understanding of the software tools that shape their operations. The findings reveal a complex landscape: there is no one-size-fits-all approach, with priorities varying by tool type and function.

The New Transatlantic Trade Agreement

The future of Europe’s electronics industry is being reshaped by a single deal: the new transatlantic tariff agreement. Starting August 1, 2025, most European electronics exports to the U.S. will face a unified 15% tariff, adding an estimated €9.8 billion in annual duties. This new paper from the Global Electronics Association examines how the agreement alters competitiveness,  raising costs for U.S. importers and consumers, disadvantaging European firms, and tilting the field toward competitors in Mexico and Asia.
 

Upcoming Events:

• October 22-24, 2025 – Evertiq Expo Warsaw 2025 – Christoph Solka will present on the European EMS industry

In a joint effort, the Global Electronics Association recently co-signed a statement urging European policy makers to adopt a harmonised and workable approach to the "Substances of Concern” (SoC) concept across different sustainability policies that impact the electronics supply chain. We ask for coherent, pragmatic, and non-duplicative legislation that ensures both sustainability and competitiveness.  The joint letter was submitted in response to the consultation on simplification of administrative burdens in environmental legislation, which closed on September 10.

Key Summary

• The Global Electronics Association co signed a joint industry statement calling for a harmonised and workable Substances of Concern approach across sustainability policies.
• The statement urges European policy makers to ensure coherence, pragmatism, and non duplicative requirements for the electronics supply chain.
• The letter was submitted in response to the consultation on simplifying administrative burdens in environmental legislation.
• The consultation closed on September 10 and reflects growing industry concern about fragmented regulatory approaches.
• Companies seeking more information can contact Diana Radovan, the Association’s director of sustainability policy.

For more information, contact Diana Radovan, Global Electronics Association' director of sustainability policy. 

by Diana Radovan, Sustainability Policy Director

Key Summary

• The Global Electronics Association urges European policymakers to refine the omnibus sustainability reporting package for electronics.
• The Association recommends Tier 1 due diligence as the only practical approach for a complex global supply chain.
• Electronics manufacturers face a heavy reporting burden that affects competitiveness and the EU green transition.
• The Association supports sector specific standards by 2030 and stronger alignment across sustainability reporting policies.
• Harmonized implementation between Member States is essential to prevent regulatory fragmentation.

In its recent position on the omnibus package for sustainability reporting, addressed to the European policymakers who are driving it, the Global Electronics Association outlines two types of recommendations for a fit-for-purpose package for the electronics industry. The position provides both voting recommendations on amendments proposed by the European Parliament’s Committee on Legal Affairs (JURI) and general recommendations to the Parliament, Commission and Council before trialogue negotiations. 

The Association has long supported a much-needed reduction in administrative burden for the electronics industry. Electronics are the beating heart of EU business and essential to EU’s competitiveness, technical sovereignty, and green transition, often integrated so seamlessly in our daily lives that their complex manufacturing and supply chain challenges are not obvious. And yet, the electronics industry has been struggling in recent years due to the high reporting burden. 

The omnibus package for sustainability reporting must be further improved to deliver on its promise and it must do so with urgency. For the electronics industry and its complex supply chain, a focus on Tier-1 due diligence obligations is not only necessary, but the only realistic approach. We support the adoption of sector-specific standards by 2030, which are key to our industry, better alignment of different sustainability reporting policies, and harmonising the implementation of such policies between Member States to prevent further regulatory fragmentation.

Read the full position.