The current sentiment of the global electronics manufacturing supply chain
31 Jul 2025
News
In its latest report, the Global Electronics Association provides an analysis of the current sentiment and conditions in the global electronics manufacturing supply chain as of June 2025, highlighting cost pressures, demand resilience, and regional differences.
Current challenges in electronics
Manufacturing
Electronics manufacturers are facing significant cost pressures and declining profitability due to rising material and labour costs. Despite these challenges, demand remains resilient, with key indicators showing expansion.
• 63% of manufacturers report rising material costs.
• 48% are experiencing increasing labour costs.
• The Material Costs Index is above its long-term average, but below the 2022 peak.
• Profit margins are declining, with 10% of manufacturers reporting a decrease.
• Recruitment challenges persist, with 13% finding it easier to recruit skilled talent.
Demand resilience amid economic volatility
Demand for electronics has rebounded strongly since late 2024, with several key indicators showing positive growth. This suggests a stable operational environment despite ongoing cost pressures. Orders, backlogs, capacity utilisation, and shipments are all in expansion territory with manufacturers expecting stability in both orders and backlogs through year-end.
Six-month outlook for electronics industry
Manufacturers anticipate that high material and labour costs will persist, but demand is expected to remain stable. This outlook emphasizes the need for cost control and operational agility.
• 66% expect material costs to rise in the next six months.
• 54% anticipate labour costs will also remain high.
• 48% expect orders to remain stable, while 42% foresee stable shipments.
• Profit margins are expected to decline for 45% of global manufacturers.
Although regional variations exist, European manufacturers report a more stable outlook, with 62% expecting orders to remain unchanged.
Further reading:
From the editor's desk: Inspiring the next generation
Technews Publishing
News
Welcome to the August issue of
Dataweek. Peter Howells is still on leave, so I am back for this issue. I hope you enjoy the content and find value in it.
August is Women’s Month in South Africa,
...
Read more...
Procurement is becoming a competitive advantage
RS South Africa
News
As mining, manufacturing and industrial businesses continue to navigate rising costs, supply chain disruption and increasing pressure to improve operational performance, procurement and inventory management have become strategic business priorities rather than simply administrative functions.
Read more...
Powell Electronics signs partnership agreement with IOT Electronics
IOT Electronics
News
Powell Electronics has entered into a partnership agreement with IOT Electronics to strengthen its presence across southern Africa.
Read more...
Omniflex delivers ICCP systems across London
Omniflex Remote Monitoring Specialists
News
Omniflex has supplied impressed current cathodic protection (ICCP) systems for a range of prominent buildings across London, helping to protect reinforced concrete structures from corrosion and extending their service life.
Read more...
New appointments for Würth Electronics South Africa
Würth Electronics South Africa
News
New appointments for Würth Electronics South Africa
Read more...
MTN celebrates 80 Western Cape digital graduates
News
Eighty unemployed young people from across the Western Cape have successfully completed MTN South Africa’s Digital Skills for Digital Jobs (DS4DJ) programme, earning accredited qualifications in Data Analytics, Systems Development and Cybersecurity.
Read more...
GirlCode Hackathon 2026 kicks off across South Africa and Botswana
News
GirlCode, in partnership with Absa Group, Truecaller, MTN, SAP Fioneer, RS South Africa and other ecosystem partners, successfully hosted the first leg of the 2026 GirlCode Hackathon.
Read more...
Rooibos heads to space
News
A South African scientific initiative linking agriculture and space research has officially launched today with the Rooibos in Space programme at Parklands College’s Innovation Centre in Cape Town.
Read more...
From the editor's desk: Local can be international
Technews Publishing
Editor's Choice News
Welcome to the July 2026 issue of
Dataweek. As you can see from this introduction,
Dataweek’s regular editor, Peter Howells, is on extended leave and I am filling the void in his editor’s column – hopefully without being too boring.
Read more...
Landis+Gyr EMEA introduces new company name: EYKON
News
EYKON is the new company name of Landis+Gyr EMEA, formerly part of the Landis+Gyr Group. The company supports electricity, gas, water and thermal utilities in managing increasingly complex networks, improving operational efficiency and enabling more sustainable use of resources.
Read more...
printer friendly version