The electronics manufacturing supply chain is facing renewed and measurable pressure on component and materials availability, and conditions are moving in the wrong direction.

February data from the Global Electronics Association signals improving demand in electronics manufacturing, but rising costs, talent shortages, and ecosystem-wide capacity constraints remain key structural challenges.

The global electronics manufacturing supply chain remains under pressure from rising costs, with 61% of firms reporting higher material costs and 54% noting increased labor expenses. according to the Global Electronics Association’s Sentiment of the Global Electronics Manufacturing Supply Chain Report.

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.

Electronics manufacturers are bracing for higher costs as profit pressures deepen according to IPC’s May Sentiment of the Global Electronics Manufacturing Supply Chain Report. Despite tariff concerns and rising material and labor costs, electronics industry demand is holding steady. The New Order Index expanded this month, signaling ongoing demand strength.

This past March, electronics industry demand strengthened to its highest level in nearly a year, indicating strong expansion in customer and manufacturing activity according to IPC’s March Sentiment of the Global Electronics Manufacturing Supply Chain Report.

Orders, capacity utilization, and backlogs all increased in the past month, pushing electronics industry demand higher according to IPC’s February Sentiment of the Global Electronics Manufacturing Supply Chain Report. The Demand Index is at its highest level since May 2024. Profit margins remain under pressure, but the Profit Margin Index has risen for the second consecutive month.

Demand in the electronics industry recovered to 100 in December, marking the threshold between contraction and expansion after four consecutive months below this level according to IPC’s January Sentiment of the Global Electronics Manufacturing Supply Chain Report.

The electronics industry faced a dip in sentiment this December, as the Demand Index declined 1.8 percent according to IPC’s December Sentiment of the Global Electronics Manufacturing Supply Chain Report. It remained below 100 for the fourth consecutive month, signaling continued contraction.

The electronics industry faced a mixed sentiment in November, with modest improvements in demand overshadowed by rising cost pressures according to IPC’s November Sentiment of the Global Electronics Manufacturing Supply Chain Report.