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.
Though labor and material costs continue to rise and labor challenges persist as labor markets remain tight, the outlook for shipments, orders, backlogs and capacity utilization is expected to improve, reflecting strong optimism.
IPC chief economist and report author, Shawn DuBravac PhD, said: “The majority of electronics manufacturers are maintaining their current shipment schedules, opting not to expedite deliveries despite potential tariff implications.”
When asked about shipping surcharges 72 per cent of respondents stated they have not experienced shipping surcharges beyond expectations, and 70 per cent do not anticipate new surcharges in the next 60 days.
