BANNOCKBURN, IL — Electronics manufacturers anticipate at least a five-week product shipment delay from suppliers due to the coronavirus epidemic, according to a survey conducted by IPC.

Roughly 65% of manufacturers report their suppliers expect, on average, a three-week delay. However, electronics manufacturers expect delays to be longer than what their suppliers are currently quoting.

The group says shipping delays from China and other countries where the virus has spread are already having negative impacts on manufacturers.

“The delays will likely have ripple effects for the rest of the year,” said John Mitchell, IPC’s president and CEO. "The longer China is affected by the epidemic, and the more it spreads to other parts of the world, the supply chain will experience more and varied strains and disruptions.”

An overwhelming majority (84%) of electronics manufacturers and suppliers are worried about the epidemic’s impact on their business operations. Delays in receiving supplier inputs can lead to factory downtime, higher average costs, transportation bottlenecks, pressure for alternative sourcing, delayed sales, and delayed prototyping that slows the introduction of new products.

“In most cases, it’s not easy for manufacturers to switch suppliers, if that’s what turns out to be necessary,” said Mitchell. “Securing alternate sources requires an investment of significant time and money that must be weighed against the value gained.”

IPC surveyed industry professionals at electronics manufacturing companies. Almost half of the survey respondents represent the contract EMS industry. This segment performs an estimated 25% of North American electronics manufacturing for OEMs. The survey was conducted between Feb. 11–16.

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