Issue link: https://iconnect007.uberflip.com/i/1478618
SEPTEMBER 2022 I DESIGN007 MAGAZINE 53 RISING LABOR COSTS SLOWER SHIPMENTS 2019 2020 2021 2022 120 90 60 30 0 China to United States China to Europe GROWING MARKET Growth will continue 2027 USD 76 BILLION USD 54.8 BILLION 2020 Source: Flexport Research Source: The Economist Intelligence Unit Source: Research and Markets 2010 2020 2025 $50 $40 $30 $20 $10 0 USA CANADA S. KOREA JAPAN CHINA Average Hourly Wage (USD) 90% of electronics manufacturers are currently experiencing rising material costs, while 80% are experiencing rising labor costs. At the same time, ease of recruitment, profit margins, and inventories are presently declining. MATERIAL COSTS 89% 9% LABOR COSTS 78% 21% ORDERS 34% 18% 48% SHIPMENTS 45% 17% 38% PROFIT MARGINS 44% 12% 43% RECRUITING 41% 9% 50% CONTRACTING EXPANDING NO CHANGE RISING DECLINING Source: IPC Industry Survey, July 2022 CURRENT DIRECTION OF KEY BUSINESS INDICATORS Shipping time (days)