Phil Simmonds’ Post

The impact of rising global interest rates is affecting many industries, and electronics manufacturing is no exception. According to IPC’s February 2024 Global Sentiment of the Electronics Supply Chain Report, 66% of electronics manufacturers are experiencing rising labour costs, and 44% report rising material costs. Although recruitment struggles, order backlogs and profit margins are declining, the economic recession could change that over the next six months... Whilst demand remains positive, manufacturing companies that want to stay ahead must consider their supply chain strategies in these turbulent times. Read the full report below. #ElectronicsManfacturing #SupplyChain #ManufacturingSupplyChain https://bit.ly/3uVAZyq

Demand Remains Positive Among Electronics Manufacturers, Labor Costs Index at Highest Level in Six Months. https://lnkd.in/gEDFAsiQ #ElectronicsManufacturing #GlobalSupplyChain #EconomicOutlook #Recession2024 #LaborCosts #MaterialCosts #SupplyChainSentiment #IndustryInsights #BusinessForecast #CapacityUtilization #IPCInsights #EconomicSurvey #ManufacturingTrends #StrategicForesight #GlobalEconomy

#Electronics product demand weakened last month, but operations remained healthy, according to IPC’s September 2023 Global Sentiment of the Electronics Supply Chain Report. In addition, nearly 63 percent of #electronicsmanufacturers are experiencing rising labor costs, and roughly 22 percent are cutting hours to keep workers even though they are facing slower demand. For the report, IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain. #IndustryIntelligence #MarketResearch #electronicssupplychain READ REPORT: https://hubs.li/Q023BJD00

Manufacturing’s continued expansion is a bright spot for the economy, as partly reflected by the pickup in both exports and imports in recent months, especially electronics. Lower Fed and local interest rates would help reduce borrowing costs and help spur greater demand for loans by some manufacturers. https://lnkd.in/gGjVP2YE

EMPIRE STATE MANUFACTURING SURVEY, May 2024 • Manufacturing Activity Continued to Decline in New York State, according to the Empire State Manufacturing May Survey • The Diffusion Index for General Business Conditions fell to -15.6 from -14.3 in April • The latest reading was worse than the forecast of -9.9 • The Headline General Business Conditions Index was little changed at -15.6 • New Orders Declined Significantly, while shipments held steady • Unfilled Orders continued to Decline • Delivery Times Shortened • Inventories were little changed • Labor Market Conditions remained weak --- with Employment and Hours Worked continuing to move lower • Pace of Input and Selling Price increases moderated slightly • Though firms expect conditions to improve over the next six months, optimism was subdued RECENT HISTORY NOTE Their was a gradual decline in 2015 that rose back up in 2016 --- with a giant dip in 2020 due to COVID-19. The Index quickly picked up again in 2021, declined for 2022, and gradually rose in 2023. However, the Index has kicked off 2024 with a sharp decline. #empirestatemanufacturingsurveymay2024

The industrial market is on the rise 🏢 🏣 The Eastern M25 industrial market experienced a slowdown in activity in 2022, with total take-up falling below the 10-year average for the first time in three years. Total activity reached 4.9 million sq ft, which was 30% below the long-run trend levels and a significant 44% drop from the previous year's take-up. 📉 The major factor behind this decline was the slowdown in the acquisition of Big Box units, resulting in a limited level of activity due to space shortages. This sluggish trend continued into the first quarter of 2023, with letting activity totalling just under 0.8 million sq ft and limited Big Box activity. The demand for industrial and logistics floor space also saw a decline, dropping from a record high of 28.6 million sq ft in the second half of 2021 to 20.7 million sq ft in the six months leading to the end of 2023. Economic uncertainties led some corporations to defer or delay occupational decisions, contributing to the easing in demand. Despite this, the overall level of requirements remains 24% above the long-run average demand levels for the Eastern M25 market. Read more about the industrial market in our free E-magazine 👉 https://lnkd.in/eBH5GTnx ☎️ 020 3405 0187 🌐 nicholassurveyors.com

The industrial inventory landscape has swelled 38.1% over the past decade. Naturally, employment figures related to the industrial sector also saw dramatic growth in the same timeframe. Employment numbers in warehousing have surged by 36.3%, while manufacturing employment figures have shown a healthy increase of 17.8%. Nonetheless, both sectors experienced a slight decline as a result of strict lockdown measures imposed during the pandemic and the subsequent periods of uncertainty. The recent trend of manufacturers nearshoring their operations has significantly boosted manufacturing related employment figures in recent quarters. With the planned construction of new semiconductor, electric vehicle (EV), and battery sites, the manufacturing employment sector is expected to maintain robust job growth levels. The U.S. economy is set to undergo a significant transformation with the introduction of the 2022 Inflation Reduction Act (IRA). This groundbreaking legislation will not only boost the number of high-paying manufacturing jobs nationwide, but also foster a substantial shift in economic dynamics. With a strong backing of both federal funding and private sector investments, the IRA has particularly influenced states in the Midwest and Southeast, now commonly referred to as the "Battery Belt." These regions have witnessed a remarkable influx of capital and subsequent job creation as a result.

March was a great month for the US manufacturing industry, with production reaching a 22-month high and job creation accelerating. Despite softer new order growth, the sector's resilience has given firms the confidence to increase staffing levels and reduce backlogs of work. The positive outlook for the future is fueled by rising demand and robust efforts to streamline operations, despite inflationary pressures. With supply chains stabilizing and inventory levels being managed efficiently, the stage is set for continued growth and success. #Manufacturing #USIndustry #EconomicGrowth 🏭📈🇺🇸

The US manufacturing sector is booming, hitting its fastest growth rate since 2022. According to recent reports from the Institute for Supply Management and S&P Global, we're witnessing a significant upturn in manufacturing activity, with production reaching a 22-month high. This resurgence ends one of the longest manufacturing downturns, indicating a healthy economic expansion. What's behind this growth? A combination of strong demand, increased output, and accommodating input costs. #GrowTalentManagement #GrowSmallBusiness #M&A2 #Chicago   https://lnkd.in/eMrmGWj 

Eager to stay ahead of the curve on electronics material costs for the next six months? Look no further than this comprehensive report. Amitron #electronics #supplychain #laborcost #materialcost