2. > Electronics Manufacturing Supply Chain is Already Feeling the Impact of the Russia-Ukraine War.
▪
▪ 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
▪ Manufacturers expect the automotive, consumer, and industrial electronics markets to be most negatively
Impacted by conflict, while anticipating the defense market to be positively impacted
> Overall Demand Remains Strong:
▪
> Inventories Remain Tight:
▪
▪
3. Material costs
Labor costs
Orders
Shipments
Backlogs
Capacity Utilization
Inventory available to your customers
Profit margins
Inventory available to you from your suppliers
Ease of recruiting/finding skilled talent
Rising Remaining Flat / No Change Declining
146
134
121
115
114
114
94
85
83
79
Diffusion Index^
Current Direction of Key Business Indicators
-- Total --
4. • Shipments are rising at a higher rate in North America vs. Europe.
•
• Among firms operating Globally and those in North America, orders are currently rising at a faster pace
when compared to European firms.
•
• Profit margins are rising more so for firms operating Globally vs. all other regions.
•
• Ease of recruitment is currently declining at a significantly higher rate in North America and Europe
when compared to Global manufacturers.
•
5. • Labor costs are currently rising at a higher rate in North America vs. Europe and firms operating
Globally.
•
• Among firms operating Globally, inventory available from suppliers is rising at a faster pace when
compared to firms in North America and Europe.
•
6. 147
141
128
120
120
114
89
86
79
78
Material costs
Labor costs
Orders
Shipments
Backlogs
Capacity Utilization
Inventory available to your customers
Profit margins
Inventory available to you from your suppliers
Ease of recruiting/finding skilled talent
Rising Remaining Flat / No Change Declining
Current Direction of Key Business Indicators
-- Primary Region: North America --
Diffusion Index^
7. Material costs
Labor costs
Orders
Capacity Utilization
Backlogs
Shipments
Inventory available to your customers
Inventory available to you from your suppliers
Profit margins
Ease of recruiting/finding skilled talent
Rising Remaining Flat / No Change Declining
145
126
112
110
108
102
97
77
77
73
Current Direction of Key Business Indicators
-- Primary Region: Europe --
Diffusion Index^
8. Current Direction of Key Business Indicators
-- Primary Region: APAC --
Material costs
Labor costs
Capacity Utilization
Shipments
Orders
Backlogs
Inventory available to your customers
Inventory available to you from your suppliers
Profit margins
Ease of recruiting/finding skilled talent
Rising Remaining Flat / No Change Declining
143
136
115
114
113
109
103
89
79
78
Diffusion Index^
9. Current Direction of Key Business Indicators
-- Primary Region: Global --
Diffusion Index^
Material costs
Orders
Labor costs
Capacity Utilization
Shipments
Backlogs
Profit margins
Inventory available to your customers
Inventory available to you from your suppliers
Ease of recruiting/finding skilled talent
Rising Remaining Flat / No Change Declining
148
130
130
127
124
115
108
100
96
96
10. Material costs
Labor costs
Orders
Shipments
Capacity Utilization
Backlogs
Inventory available to your customers
Profit margins
Inventory available to you from your suppliers
Ease of recruiting/finding skilled talent
Rise Remain Flat / No Change Decline
140
135
121
117
116
109
101
94
93
88
Diffusion Index^
Anticipated Direction of Key Business Indicators – Next Six Months
-- Total --
11. • Among firms operating Globally and those in North America, shipments are expected to rise at a
higher rate vs. Europe and APAC.
•
• At the same time, orders are expected to rise more so among firms operating Globally and those in
North America when compared to Europe and APAC.
•
• The outlook for increased profit margins is notably weaker among European manufacturers.
•
12. • Ease of recruitment is expected to improve more so in the next six months among firms operating
Globally when compared to North American and European manufacturers.
•
• Outlook concerning inventories is more positive among manufacturers operating Globally compared to
European manufacturers.
•
•
13. Anticipated Direction of Key Business Indicators – Next Six Months
-- Primary Region: North America --
Diffusion Index^
Material costs
Labor costs
Orders
Shipments
Capacity Utilization
Backlogs
Inventory available to your customers
Profit margins
Inventory available to you from your suppliers
Ease of recruiting/finding skilled talent
Rise Remain Flat / No Change Decline
145
139
126
122
115
113
100
95
93
87
14. Material costs
Labor costs
Backlogs
Orders
Capacity Utilization
Shipments
Inventory available to your customers
Inventory available to you from your suppliers
Ease of recruiting/finding skilled talent
Profit margins
Rise Remain Flat / No Change Decline
143
130
112
110
110
107
90
83
80
79
Anticipated Direction of Key Business Indicators – Next Six Months
-- Primary Region: Europe --
Diffusion Index^
15. Labor costs
Material costs
Capacity Utilization
Shipments
Orders
Inventory available to your customers
Backlogs
Profit margins
Inventory available to you from your suppliers
Ease of recruiting/finding skilled talent
Rise Remain Flat / No Change Decline
137
136
119
115
114
105
103
95
94
87
Anticipated Direction of Key Business Indicators – Next Six Months
-- Primary Region: APAC --
Diffusion Index^
16. Anticipated Direction of Key Business Indicators – Next Six Months
-- Primary Region: Global --
Orders
Shipments
Material costs
Labor costs
Capacity Utilization
Profit margins
Inventory available to your customers
Inventory available to you from your suppliers
Ease of recruiting/finding skilled talent
Backlogs
Rise Remain Flat / No Change Decline
138
135
135
131
125
112
109
106
104
104
Diffusion Index^
17. Gap:
Material costs Labor costs Orders Shipments Backlogs Capacity Utilization Inventory available
to your customers
Profit margins Inventory available
to you from your
suppliers
Ease of
recruiting/finding
skilled talent
Current Direction
Expected Direction
Direction of Key Business Indicators – Diffusion Index^
-- Total --
-6 +1 +/-0 +2 -5 +2 +7 +9 +10 +9
18. Gap:
Material costs Labor costs Orders Shipments Backlogs Capacity Utilization Inventory available
to your customers
Profit margins Inventory available
to you from your
suppliers
Ease of
recruiting/finding
skilled talent
Current Direction
Expected Direction
Direction of Key Business Indicators – Diffusion Index^
-- Primary Region: North America --
-2 -2 -2 +2 -7 +1 +11 +9 +14 +9
19. Material costs Labor costs Orders Capacity Utilization Backlogs Shipments Inventory available
to your customers
Profit margins Inventory available
to you from your
suppliers
Ease of
recruiting/finding
skilled talent
Current Direction
Expected Direction
Gap:
Direction of Key Business Indicators – Diffusion Index^
-- Primary Region: Europe --
-2 +4 -2 +/-0 +4 +5 -7 +2 +6 +7
20. Material costs Labor costs Capacity Utilization Shipments Orders Backlogs Inventory available
to your customers
Inventory available
to you from your
suppliers
Profit margins Ease of
recruiting/finding
skilled talent
Current Direction
Expected Direction
-7 +1 +4 +1 +1 -6 +2 +5 +16 +9
Gap:
Direction of Key Business Indicators – Diffusion Index^
-- Primary Region: APAC --
21. Material costs Orders Labor costs Capacity Utilization Shipments Backlogs Profit margins Inventory available
to your customers
Ease of
recruiting/finding
skilled talent
Inventory available
to you from your
suppliers
Current Direction
Expected Direction
Direction of Key Business Indicators – Diffusion Index^
-- Primary Region: Global --
-13 +8 +1 -2 +11 -11 +4 +9 +8 +10
Gap:
22.
23. Anticipated Impact of the Russia-Ukraine Conflict on Electronics Supply Chains
Total North America Europe APAC Global
24. Anticipated Impact of the Russia-Ukraine Conflict on Down-Stream Electronics Markets
Total North America Europe APAC Global
