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: Liberation Day Shockwaves, Tariffs and Global Trade Disruptions
The economic landscape once again shifted dramatically with the White House's "Liberation Day" announcements, and Shawn DuBravac, Chief Economist of IPC, brings clarity to the chaos. His analysis reveals how the newly announced tariffs - including a surprising 46% on Vietnamese goods and 34% on Chinese imports - are already causing companies to pause production, announce layoffs, and rethink their supply chains.
What makes these tariffs particularly disruptive is their timing and scope. Vietnam had emerged as a key alternative to China for electronics manufacturing, capturing 27% of US laptop imports compared to China's 66%. Now, those diversification efforts face severe headwinds. Shawn estimates laptop prices could surge by as much as 48%, a cost neither manufacturers with their tight margins nor financially-strained consumers seem prepared to absorb.
The conversation takes a concerning turn when discussing recession probability. While the US economy was on solid footing before these announcements, Shawn notes the probability of a 2025 recession continues to rise with these policy announcement. Consumer sentiment was already weakening with Americans "spending everything available to them." The timing creates a potential economic storm: short-term panic buying followed by significant demand contraction as prices rise.
Mexico and Canada emerge as potential winners due to USMCA exemptions, while European manufacturers face difficult decisions about their US export strategies. Companies are responding with various approaches - 31% investing in automation, nearly 30% switching suppliers, and 60% attempting to push costs upstream through renegotiated contracts. Meanwhile, 18% have already announced hiring freezes with another 36% considering similar measures.
Join us for this critical and timely conversation about global trade realignment, manufacturing strategies, and how organizations like IPC are evolving to provide both global and region-specific insights during this period of economic uncertainty. The landscape is changing daily - understanding these shifts has never been more important for anyone involved in global manufacturing and supply chains.
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.