IPC's biennial wage rate and salary survey for the North American electronics assembly industry is open with a response deadline of January 28. The confidential survey covers compensation for hourly and salaried technical, manufacturing and sales positions at original equipment manufacturers (OEMs) and contract electronics manufacturing services (EMS) companies in North America. It also covers salary budget growth, planned increases for 2022, and employee benefits and policies.                                                      

Companies can use this study to assess their competitiveness in today’s labor market. The data will be segmented by company type, size and region, enabling companies to assess their competitive position as employers within their region and company-size tier. The study also enables companies to benchmark their compensation, benefits and policies against industry norms, and update their human resource management strategies. It is unique in its focus on the North American electronics assembly industry.                                                                                   

The survey is intended for HR professionals and executives who can provide data on a range of positions and policies. Survey participants will receive the report on the findings at no cost. The survey can be accessed at https://survey.alchemer.com/s3/6505112/0e5497220d70. IPC publishes only aggregate numbers and maintains strict confidentiality. The report will not identify participating companies.

For additional information on IPC’s industry intelligence services, visit   www.ipc.org/advocacy/industry-intelligence.

IPC’s January 2022 global electronics manufacturing supply chain sentiment report found that materials and labor costs continue to be the largest issue facing the electronics supply chain, with nine in 10 electronics manufacturers reporting rising materials costs and more than three-fourths reporting rising labor costs. Though order flows continue to be strong, and both capacity utilization and shipments are expanding, survey respondents reported growing backlogs and shrinking profit margins.

Among other conclusions, the survey results found that:

• Material costs are currently rising at a higher rate in North American than APAC: 96% of North American manufacturers report rising material costs, a significantly lower 74% report material costs are up in APAC.
• Inventory available to customers is declining at a higher rate in North America compared to both Europe and APAC: 49% of firms in North America reported declining inventory, while only 21% of firms in Europe and 16% of firms in APAC are experiencing declines.
• Manufacturers indicate the current semiconductor shortage is driving longer lead times, delayed deliveries, declining orders, increased inventories, rising costs and lost production.  Combined, these impacts are affecting manufacturers’ ability to complete orders, ultimately reducing profitability.

“Manufacturers expect to see continued increase in material and labor costs,” said IPC Chief Economist and report author Shawn DuBravac. “Escalating costs are in turn compressing profit margins. Ease of recruiting and finding skilled talent is expected to remain challenging and inventory levels are expected to remain tight for at least the next six months.”

IPC surveyed hundreds of companies from around the world, including a wide range of company sized and representing the full electronics manufacturing value chain. Survey respondents were from North America (44%), Asia (20%) and Europe (17%).

View full report: The Current Sentiment of the Global Electronics Manufacturing Supply Chain.

IPC’s January 2022 Economic Outlook report finds that supply chain challenges remain acute and have improved little from the previous month. Shortages continue to hamper production levels and lead-times remain long. Supply chain challenges will linger well into 2022, and in some instances, into 2023.

Among other data, IPC’s economic outlook report shows:

• Economic growth will be severely muted at the start of the year as Omicron slows economic activity – gross domestic product (GDP) growth in the United States could drop to as low as 2.5 percent in the first quarter of the year.
• Inflation in Europe shot-up to 4.9 percent in November, the highest level since records began in 1997, two years before the euro was launched.
• Consumer sentiment improved marginally in December, but the gains might be short-lived thanks to rising cases of COVID. Consumer sentiment reached lows in November not seen since 2011.
• The reemergence of COVID had stymied Europe’s recovery early in the year, but Europe is quickly getting growth back on track. Growth in the third quarter was 3.7 percent higher than a year ago.
• The number of employed persons increased by 0.9 percent in both the Euro area and in the European Union during the third quarter, but the unemployment rate has declined slowly during the recovery.

“It has been a tumultuous year and many of the risk factors that are prevalent today will continue through at least the first half of 2022,” said IPC Chief Economist and report author Shawn DuBravac. “COVID continues to be a major deterrent to economic growth and while the impact of the current outbreak remains unclear, the uncertainty it has created will hinder the recovery in the early months of the new year. While my expectations for growth for 2021 and 2022 are muted from prior months, I still expect the U.S. economy to grow four percent next year.”

View full report: January 2022 Economic Outlook Report.