IPC March 2025 report: Electronics manufacturing industry demand reaches year-high

The electronics industry experienced a significant surge in demand this past March, reaching its highest level in nearly a year. This robust expansion in customer and manufacturing activity is highlighted in IPC’s March 2025 Sentiment of the Global Electronics Manufacturing Supply Chain Report. The report also covers impact of recently imposed tariffs by US.

Pic: Chart on current conditions for the electronics supply chain

Three-fifths (59%) of electronics manufacturers are currently experiencing rising material costs, with half (52%) reporting rising labor costs.At the same time, profit margins, ease of recruitment, and backlogs are presently declining.
Highest Shipment Index Since March 2024: The Shipment Index soared to its highest point in a year, reflecting firms' capabilities to meet rising demand and maintain supply chain performance.
Increased Capacity Utilization: Operational activity and resource deployment reached their highest levels since late 2023, indicating strong industry performance.
Improved Talent Recruitment: The ease of recruiting skilled talent hit a record high, suggesting that hiring constraints are easing for many firms.
Rising Material Costs: After a period of decline, material costs have increased, signaling renewed input cost ...