Connect the Dots: How to Avoid Five Common Causes of Board Failure
Fresh PCB Concepts: Designing for Success at the Rigid-flex Transition Area 
Elementary Mr. Watson: Routing Hunger Games—May the Traces Be Ever in Your Favor
Global Electronics Industry Remains Under Pressure from Rising Costs
August 4, 2025 | Global Electronics AssociationEstimated reading time: 1 minute
The global electronics manufacturing supply chain remains under pressure from rising costs, with 61% of firms reporting higher material costs and 54% noting increased labor expenses. according to the Global Electronics Association’s Sentiment of the Global Electronics Manufacturing Supply Chain Report. While the Material Cost Index dipped slightly from June and profit margins showed a modest gain (+6 points), only 15% of manufacturers reported actual profit improvement, highlighting the fragility of recovery.
Market Dissonance: Strong Demand Despite Volatility, Hiring Challenges
Operational metrics such as orders, shipments, backlogs, and capacity utilization continue to signal expansion, maintaining momentum from the rebound that began in late 2024.
Over the next six months, electronics manufacturers expect material and labor costs to remain high, while ease of recruitment is expected to remain challenging.
Shawn DuBravac, Ph.D., Global Electronics Association’s chief economist and report author noted, “While demand indicators like orders and shipments remain strong, cost pressures continue to weigh heavily on the global electronics manufacturing sector, Operational momentum remains intact, yet the cost structure is straining under pressure. Manufacturers are adapting, but margin recovery remains elusive.”
Deeper Dive: Workforce Engagement
Electronics manufacturers globally report that their growth is constrained by an inability to recruit, onboard, retain, and upskill workers. In response to special questions regarding active hiring and skilled talent acquisition, 60% of firms are actively hiring, with European companies more likely to be pursuing talent for critical roles. Across all regions, the ability to secure skilled workers is a key limiting factor; 63% of firms report that talent shortages are constraining business growth, reinforcing labor as a critical operational challenge.
These results are based upon the findings of the Global Electronics Association’s Current State of Electronics Manufacturing Survey, fielded between June 12 and June 30, 2025.
Read the full report.
Share on:
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
Safran, PGZ Reinforce Defense Partnership Through Innovation and Local Industrial Cooperation
09/08/2025 | SafranSafran Electronics & Defense, a leading European high-technology company in aerospace and defense, and Polska Grupa Zbrojeniowa S.A. (PGZ), Poland’s primary defense industry leader, have signed two Memorandums of Understanding (MoU) to further expand their collaboration in support of European security and industrial cooperation during the International Defense Industry Exhibition (MSPO) held in Kielce.
Electra’s ElectraJet EMJ110 Inkjet Soldermask– Now in Black & Blue at Sunrise Electronics
09/08/2025 | Electra Polymers LtdFollowing the successful deployment of Electra’s Green EMJ110 Inkjet Soldermask on KLA’s Orbotech Neos™ platform at Sunrise Electronics in Elk Grove Village, Illinois, production has now moved beyond green.
Kitron Reports Initiation of Share Buyback Program
09/08/2025 | KitronKitron ASA has decided to initiate a share buyback program of up to 16,000 of its own shares for a total maximum amount of NOK 900,000. The buyback program may be carried out in the period from this announcement and until 12 September 2025.
SisTech Manufacturing Elevates PCB Assembly Services with Cutting-Edge Innovations
09/08/2025 | Globe NewswireSisTech Manufacturing, a leader in precision electronic manufacturing services, has announced it will enhance its capabilities in printed circuit board assembly.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
09/05/2025 | Andy Shaughnessy, I-Connect007It’s almost fall here in Atlanta, and that means that the temperature is finally dropping. And it quit raining! It’s been raining since March, and I’m so over it, as the social influencers say. Last night we grilled out on the deck, and it wasn’t hot, and we didn’t get rained on. Life is good. It was a busy week in the industry. In this installment of my must-reads, we say goodbye to Walt Custer, the man who made PCB data points interesting for the rest of us.