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In this issue of PCB007 Magazine, we talk with leading economic experts, advocacy specialists in Washington, D.C., and PCB company leadership to get a well-rounded picture of what’s happening in the industry today. Don’t miss it.
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PCB Connect: Impact on PCB Prices During the Pandemic
December 23, 2020 | PCB ConnectEstimated reading time: 1 minute
As the world adjusts to the effects of the global pandemic, there are at least some things that can be relied on to remain constant.
The Chinese economy having struggled at the start of the pandemic, has recovered strongly, with Chinese manufacturing activity having increased for the 9th straight month according to the National Bureau of Statistics.
Production for Chinese domestic PCBs currently exceeds export orders in many factories and coupled with price increases on raw materials in excess of 35% in some cases, PCB manufacturers are now willing to pass these increased costs to customers, which they were loath to do during the early phases of the pandemic.
As export orders start to pick up available capacity continues to reduce putting further pressure on material supply chains, allowing raw material producers to charge further premiums.
Gold remains a universal hedge to global economic uncertainty, with the precious metal rampaging to a historic high, a performance that has doubled the cost of the metal over the last 5 years.
The cost of PCB technology is not immune, with ENIG surface finishing costs having increased across all technologies, the impact of these increases being felt more across lower layer count products as the % of the increase is inversely proportionate to the number of layers.
The rebound speed of the Chinese economy is also being felt across the globe, with the U.S Dollar declining 6% against the RMB since January 2020. PCB factories with dollar exposure from billables are having to take the foreign currency translation hit as their labour costs are paid in local currency.
With increases in raw materials likely to continue until after the Chinese New Year along with the continuing rise in globally traded commodities, the market has now reached the point where PCB output prices are increasing to a level that is not sustainable for the factories to contain.
As we head toward peak production season, the importance of analyzing your forecasts and revisiting buffer stocks to mitigate longer lead times and further future price increases, cannot be overstated, and if you need any advice on your PCB supply chain, then please let the PCB Connect Group know.
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Marcy's Musings: The Growing Industry
04/16/2024 | Marcy LaRont -- Column: Marcy's MusingsAfter decades of steady decline in the U.S. and Europe, the PCB industry is finally growing, especially in China Plus One countries. The U.S. for example, which seemed to have abdicated its title as the world leader in innovating high-technology cutting-edge manufacturing processes, is now in a race to regain what it lost and then some. The PCB fabrication industry is growing in the West, thanks to DoD funding, the CHIPS and Science Act, and hopefully, the passing of HR 3249, the Printed Circuit Board and Substrates Act.
PCB007 Magazine April 2024 — The Growing Industry Issue
04/15/2024 | I-Connect007 Editorial TeamAfter more than two decades of steady decline in the U.S., the PCB industry is finally growing in the West thanks to the CHIPS and Science Act, DoD funding, and hopefully, the passing of HR 3249, the Printed Circuit Board and Substrates Act. The U.S. is now in a race to regain what was lost and then some. But what does “growing” look like for the organizations that have received DoD funding, and for the rest of us? How can we sustain this growth?