IPC survey: most expect normal ops by July

Editor: Lisa Lucke

Results of a recent survey conducted by IPC on the impacts of the Coronavirus indicated that a majority of electronics manufacturers and suppliers who responded are anticipating business operations to be “back to normal” by July 2020.

In a press release issued today summarizing the results of the survey conducted March 3-5, 75% of all respondents said they expect business to return to normal by October 2020. The survey went out to IPC members at electronics manufacturing companies, including OEMs, EMS firms, and PCB fabricators. About half of the survey respondents represent the contract electronics manufacturing services (EMS) industry. IPC President and CEO John Mitchell said, “Although manufacturers and suppliers continue to be hampered by the impacts of the coronavirus, most companies do not intend to make major cuts in capital expenditures, which suggests companies anticipate demand returning. The delays will certainly impact sales for segments of electronics manufacturing, with consumer electronics likely to be the most impacted sector, followed by industrial and automotive.” Other attitudes reflected in the survey showed nearly 40% of respondents are feeling worse about the impact of COVID-19 on their businesses than they were a month prior, and approximately 69% of respondents said that suppliers have warned of shipment delays due to COVID-19ꟷwith some growing. About half of respondents said they are working to identify alternative sources of inputs (55%) and cutting back business travel (54%). Approximately 30% of companies are allowing and encouraging telecommuting when possible. About 26% of respondents plan to cut capital expenditures in 2020, while 63% expect that capital investment will remain the same.

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