PCB007 Magazine


Issue link: https://iconnect007.uberflip.com/i/1116895

Contents of this Issue


Page 51 of 131

52 PCB007 MAGAZINE I MAY 2019 cas and global businesses were substantially higher. The same regional differences held true for the respondents' 12-month business out- look (Figure 2). Among the industry segments, the current- state score was strongest for original equipment manufacturers (OEMs) and weakest for mate- rials suppliers, although all industry segments indicated positive current-state scores in the first quarter of 2019 (Figure 3). The same pat- tern was seen in the industry segments' com- posite scores on the six-month and 12-month business outlook. Sales and order growth were the main positive factors in the current-state scores, and higher labor and materials costs and recruiting difficulties were the main neg- ative drivers. All industry segments averaged positive net scores on the current direction of profit margins except for con- tract electronics manufac- turing services (EMS) com- panies. In the six-month outlook, OEMs indicated the strongest outlooks for capital investment. Segmenting the results by company size tiers, companies with more than $100 million in annual sales produced the high- est scores for the current direction of the industry and six-month business outlook, but companies in the $10–100 million an- nual sales range had the most bullish outlook for the next 12 months. Respondents com- ment every quarter on the trends or conditions that are driving or limit- ing their business growth. The comments reveal that component shortages have begun to ease while there is growing concern about the shortage of qualified workers as the major factor limiting growth. Workforce issues now appear to be the big- gest concern in all regions and segments of the industry followed by tariffs and trade disrup- tions. For more information on IPC's first-quarter 2019 results from the "Pulse of the Electronics Industry" data service, please contact the mar- ket research department at marketresearch@ ipc.org. PCB007 Dr. John Mitchell is president and CEO of IPC—Association Connecting Electronics Industries. To read past columns or contact Mitchell, click here. Figure 2. Figure 3.

Articles in this issue

Links on this page

Archives of this issue

view archives of PCB007 Magazine - PCB007-May2019