SMT, PCB Electronics Industry News

Global Supply Chains Feeling Impacts of Russia-Ukraine War

Apr 06, 2022

New data from IPC show that the electronics manufacturing supply chain is already feeling the impact of the Russia-Ukraine War.

IPC’s April Monthly Economic Update and Global Sentiment Survey found that four-fifths of manufacturers expect the war to have a negative impact on commodity prices and transportation costs, while seven in ten anticipate a negative impact on the stock of raw materials.

Among other conclusions, the IPC survey results show:

  • The Material Costs Index rose to its highest level, with almost the entire panel reporting rising material costs.
  • Manufacturers expect the automotive, consumer, and industrial electronics markets to be most negatively impacted by conflict, while the defense market may be positively impacted.
  • Overall demand remains strong. The New Orders Index declined slightly in the last month but remains well in expansionary territory. The Backlog Index also fell slightly.
  • Inventories Available to Customers (IAC Index) slipped into contractionary territory this month, suggesting inventory levels are low.
  • Inventories Available to You from Your Suppliers (IAFS Index) improved marginally but remains in contractionary territory, suggesting most respondents are experiencing this.

The economic impact will be felt most severely in Europe, with the GDP forecast adjusted downward by nearly one percentage point. The GDP forecast for the United States has been lowered by two-tenths of a percentage point, to an expectation of 3.5 percent growth in 2022.

The Russia-Ukraine conflict is impacting the economy in several ways, including rising energy and commodity prices, with many hitting new all-time highs; and a decline in confidence, which results in reduced spending by consumers and investment by businesses. Bidirectional sanctions are also slowing economic growth.

“Energy and commodity prices are up significantly for three primary reasons: perceived potential shortages, increased stockpiling, and speculative buying amidst the uncertainty,” said Shawn DuBravac, IPC chief economist. “Both the European and U.S. economies are, at least for now, on solid footing and are well-positioned to weather the negative shock of the war, but growth will be hindered.”

IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain.

View the full reports: 

April 2022 Economic Outlook

Current Sentiment of the Global Electronics Manufacturing Supply Chain

Jun 24, 2022 -

North American EMS Industry Up 9.4 Percent in May

Jun 24, 2022 -

IPC APEX EXPO 2023 Call for Participation Deadline Extended

Jun 24, 2022 -

IPC-1402, Standard for Green Cleaners Used in Electronics Manufacturing Now Open for Public Review

Jun 24, 2022 -

Industry Groups Urge U.S. Congress to Fix Weaknesses in Electronics Supply Chain

Jun 16, 2022 -

Registration Open for 4th Annual M-EXPO Wire Processing Technology Expo

Jun 16, 2022 -

Higher Costs Continue to Dominate Electronics Industry Narrative

Jun 02, 2022 -

IPC Issues Call for Participation for IPC E-Textiles 2023

Jun 02, 2022 -

North American EMS Industry up 4.3 Percent in April

Jun 02, 2022 -

North American PCB Industry Sales Up 2.1 Percent in April

Jun 02, 2022 -

AirBorn Inc. Requalifies for IPC/WHMA-A-620 Qualified Manufacturers Listing

1289 more news from Association Connecting Electronics Industries (IPC) »

Jul 06, 2022 -

Offline PCBA Cleaning Machine HJS-7100,rosin flux, non-clean flux,water-soluble flux cleaning machine

Jul 05, 2022 -

Semiconductor Spray Cleaning Machine HJS-9700,Semiconductor Wafer Cleaning Machine HJS-9700

Jul 04, 2022 -

Pneumatic Stencil Cleaner HJS-9000II,dual chamber stencil cleaning machine

Jul 03, 2022 -

Electric Stencil Cleaner HJS-9500, SMT Electric Stencil Cleaner HJS-9500

Jul 01, 2022 -

Screen Cleaning Machine HJS-4600, SMT Screen Cleaning Machine HJS-4600

Jun 30, 2022 -

Electric Fixture Cleaning Machine HJS-6700, SMT pallet cleaning machine, soldering pallet cleaning machine

Jun 29, 2022 -

Waste Water Treatment Machine RWT-1000, SMT Waste Water Treatment Machine RWT-1000

Jun 28, 2022 -

Gen3's Dr Chris Hunt, CTO submits an insightful paper to the journal of Surface Mount Technology

Jun 28, 2022 -

Squeegee Cleaning Machine HJS-3700,SMT Squeegee Cleaning Machine HJS-3700

Jun 27, 2022 -

Solderstar Celebrates 20 Years of Innovation

See electronics manufacturing industry news »

Global Supply Chains Feeling Impacts of Russia-Ukraine War news release has been viewed 139 times

 Reflow System

Precision Auger Dispense Pump