As a result, production delays have increased while costs have shot up, creating what the survey calls a very ‘cloudy industry outlook’.
The survey, conducted by IPC – the global electronics industry association, also found that companies are facing significant challenges in hiring and keeping skilled talent.
While strong demand is helping sales, the survey found that shortages were continuing to delay shipments and increase backlogs. As a result, manufacturers face higher prices as they compete for limited supplies.
The survey found that 88% of respondents experienced increased lead times, while 31% saw production delays of eight weeks or more. Of concern, 58% expected shortages to continue well into the second half of 2022.
Skills shortages have seen firms looking to up-skill their workers (46% of respondents) and boost wages (44% of respondents).
While the news has been dominated by chip shortages, the survey found that the electronics industry is facing a much broader range of shortages in what is a global phenomenon and which is likely to take well into next year to resolve.
The survey warns that is unsustainable and, if current shortages do extend well into next year, the consequences for all industries tied to electronics manufacturing could be severe.