EMS@C-LEVEL
As Forbes, Entrepreneur, Fast Company and SCOOP writer, Philip Stoten, continues to talk to EMS (Electronic Manufacturing Services) executives he learns more about their individual and collective experiences and their expectations for their own businesses and for the entire electronic manufacturing industry.
EMS@C-LEVEL
EMS & The Economist - Chaos-as-a-Strategy and How Tariffs Are Changing Supply Chains (May 25)
Economic uncertainty looms large over the manufacturing landscape as tariffs, interest rates, and geopolitical tensions reshape global supply chains. The slight contraction in Q1 economic growth masks an underlying reality - demand remains relatively stable, but manufacturers face difficult decisions about where and when to invest in new capacity. I unpack this and so much more with IPC Chief Economist, Shawn Dubravac.
Tariff uncertainty has become a permanent feature rather than a temporary disruption. What began as a negotiation tactic appears to be transforming into a long-term strategic tool, with 10% tariffs likely representing the floor rather than a temporary measure. This new normal is driving dramatic shifts in manufacturing locations, with smartphone imports from India to the US jumping from 12% to 28% in just one year as companies diversify away from China. According to IPC sentiment data, 17% of electronics firms are actively seeking new manufacturing capacity in the US, with others looking toward Mexico, Europe, and Southeast Asia.
Two sectors stand out as bright spots amid the uncertainty. Defense spending in Europe has surged in response to ongoing geopolitical tensions, creating substantial opportunities for manufacturers serving this market. Simultaneously, we're witnessing unprecedented investments in AI infrastructure, particularly in the Gulf region, where massive data center projects are being announced. These twin forces of defense and AI are creating pockets of high growth even as traditional electronics sectors face headwinds.
Companies that can build agility into their global operations while positioning themselves in these growth sectors will find themselves well equipped to navigate the challenging landscape. Rather than waiting for clarity that may never arrive, successful manufacturers are developing strategies to thrive amid ongoing uncertainty. Listen now to gain crucial insights into where the electronics manufacturing industry is headed for the remainder of 2025 and beyond.
EMS@C-Level is sponsored by global inspection leaders Koh Young (https://www.kohyoung.com) and Creative Electron (https://creativeelectron.com)
You can see video versions of all of the EMS@C-Level pods on our YouTube playlist.