Electronics manufacturers are bracing for higher costs as profit pressures deepen according to IPC’s May Sentiment of the Global Electronics Manufacturing Supply Chain Report. Despite tariff concerns and rising material and labor costs, electronics industry demand is holding steady. The New Order Index expanded this month, signaling ongoing demand strength.

In response to special questions regarding tariff pressures, the percentage of electronics manufacturers not pulling forward shipments due to potential tariff risks has dropped from 65 per cent in February to 53 per cent in May 2025. 

IPC chief economist and report author, Shawn DuBravac PhD, noted: “Electronics manufacturers expect more than two-thirds (68 per cent) of announced tariffs will be paid by consumers.”

Fifty-two percent of electronics manufacturers report they are adding a separate line item for tariff costs on invoices, while 38 per cent are rolling those costs into the overall price without identifying them specifically.

www.ipc.org