BANNOCKBURN, IL - Electronics demand in March reached its highest level in nearly a year, with strong manufacturing activity and rising shipments, according to a survey IPC released today.

Capacity utilization hit its highest point since late 2023, while hiring constraints eased to record levels. Material costs rose, however, reversing a multi-month decline, and firms remain cautious about labor costs.

The report, which was taken February 13 to 28, found that on average 29% of manufacturers’ supply chains are currently reliant on Chinese suppliers.

To counter tariffs, some 31% of manufacturers responding to the survey reported investing in automation, while 28% switched to non-tariffed suppliers. Additionally, 61% are considering renegotiating contracts to mitigate cost pressures.

Looking ahead over the next six months, electronics manufacturers expect labor and material costs to remain high, with European manufacturers anticipating a sharper decline in capacity utilization than their North American counterparts. Trade policies remain a top concern, with nearly half of respondents citing economic impact as a key issue.

• Prev
• Next