BANNOCKBURN, IL – A survey of electronics supply chain companies reveals more than 40% say customers have changed sourcing from Asia to North America or Europe in the past two years.
 
The IPC survey of executives and marketing professionals at EMS, PCB and suppliers in North America and Europe was conducted in November, and 50 companies responded.
 
According to IPC, 42% of respondents have seen some level of program migration back to the West.
 
“There has been some speculation recently within the electronic interconnect industry that some customers may be changing their sourcing patterns and shifting some business back to North America and Europe from Asia for a variety of reasons,” said Sharon Starr, director of market research. “The goal of the survey was to confirm this trend, estimate the financial impact on the industry and identify the drivers of the trend. Although the intent was not to produce statistically significant data, we definitely saw some evidence of regional shifts.”
 
The respondents estimated an average of 2.5% growth in their 2007 and 2008 business was attributable to this trend. Quality concerns was the issue cited most often as the primary driver of this trend. Other key contributors were transportation costs, currency exchange rates, long supply lines and communication difficulties, says IPC. 

ARLINGTON, VA -- Electronic component orders fell in January for the third consecutive month, according to the monthly index compiled by the Electronic Components Association (ECA).  The 12-month average, comparing this year’s results to last year’s, continued a descent that began last summer.