Stock Labor shortages hit electronics makers as chip drought persists,...

Labor shortages hit electronics makers as chip drought persists, causing delays

-

Stock Markets44 minutes ago (Sep 23, 2021 07:36AM ET)

(C) Reuters. FILE PHOTO: An Intel Tiger Lake chip is displayed at an Intel news conference during the 2020 CES in Las Vegas, Nevada, U.S. January 6, 2020. REUTERS/Steve Marcus/File Photo

By Stephen Nellis

(Reuters) – Nearly four in five electronics manufacturers say that it has become harder to find qualified workers, compounding problems from an ongoing chip shortage and causing delays in shipping products, a trade group representing them said on Thursday.

IPC, which represents contract manufacturers such Foxconn, chipmakers such as Intel Corp (NASDAQ:INTC), circuit board makers and other industry players, said about 80% of respondents in its most recent survey said they were having trouble finding workers. More than two-thirds of the companies surveyed said that their labor costs were also rising.

The labor woes come at a time when the industry is also dealing with a global chip shortage that started last year. More than half of the respondents said they did not believe the chip shortage would abate until at least the second half of 2022, with 90% of the companies saying their overall materials costs, which also include non-chip items, were rising.

The result had been increased delays and shrinking profit margins, the survey said. Less than a quarter of the companies surveyed said their profits were growing, with nearly a third saying they expected margins to shrink. And some 88% of companies said their lead times – the delay between receiving an order and fulfilling it – was going up, sometimes to as long as two months.

Shawn DuBravac, chief economist at IPC and lead researcher on the study, said the labor shortages were worst in North America and Europe, and electronics manufacturers would likely have to go beyond raising wages, which 44% said they were doing, to attract workers. More than a third of companies said they were providing more flexible hours or additional training and education.

“That becomes an important thing in manufacturing sectors. It won’t be just higher wages. It will also be, ‘We’re going to train you. If there’s other education aspirations that you have, we’ll work to help you with that,'” DuBravac said.

Labor shortages hit electronics makers as chip drought persists, causing delays

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Latest news

Biden to attend memorial service honoring U.S. law enforcement officers

World8 minutes ago (Oct 16, 2021 07:10AM ET) (C) Reuters. FILE PHOTO: U.S. President Joe Biden and first lady Dr....

Russia seeing record gas demand but still ready to boost EU supplies, Novak says

Commodities23 minutes ago (Oct 16, 2021 06:56AM ET) (C) Reuters. FILE PHOTO: Flames from a gas burner are reflected on...

Attackers Behind Trickbot Expanding Malware Distribution Channels

The operators behind the pernicious TrickBot malware have resurfaced with new tricks that aim to increase its foothold by...

UK PM Johnson visits church where lawmaker was stabbed to death

World15 minutes ago (Oct 16, 2021 06:03AM ET) 5/5 (C) Reuters. Britain's Labour Party leader Keir Starmer, Prime Minister Boris Johnson...

Subscribe here

NASA launches first space probe to study Jupiter’s Trojan asteroids

Stock Markets17 minutes ago (Oct 16, 2021 06:01AM ET) 5/5 (C) Reuters. The capsule with NASA's Lucy spacecraft, atop a United...

U.S. offers payments, relocation to family of Afghans killed in botched drone attack

World13 minutes ago (Oct 16, 2021 05:05AM ET) (C) Reuters. FILE PHOTO: The Pentagon logo is seen behind the podium...

You might also likeRELATED
Recommended to you