8/29/24

Chris Mitchell
Vice President, Global Government Relations

The Headlines at a Glance: 

TOP NEWS OF THE WEEK 

• IPC is Rallying Support for PCB Investments in FY25 Defense Appropriations
• Zentech Hosts U.S. Rep. Darin LaHood for a Tour of its Manufacturing Facility
• Mectronx Welcomes U.S. Sen. Ron Johnson for a Plant Tour

QUOTE OF THE WEEK 

• How a New President Could Impact U.S. Electronics Manufacturing

UNITED STATES

• U.S. Office of Strategic Capital Seeks Industry Input on Defense Technology
• How Will the U.S. Presidential Election Affect Electronics Manufacturing?

EUROPEAN UNION

• New FAQs on Requirements for EU Corporate Sustainability Reporting Directive
• Revisions to Rolling Plan Include New Technical Exemptions Under RoHS Directive

WORKFORCE

• IPC and Stephen F. Austin State University Partner on Workforce Development

UPCOMING EVENTS

• Demystifying the EU Corporate Sustainability Due Diligence Directive (CSDDD) for the Electronics Manufacturing Industry – Webinar (September 11, 2024)
• IPC APEX EXPO 2025: Anaheim, California, USA (March 15-20, 2025)

HELP US SPREAD THE WORD ON SOCIAL MEDIA

KEEP IN TOUCH WITH US

TOP NEWS OF THE WEEK

IPC is Rallying Support for PCB Investments in FY25 Defense Appropriations: The U.S. Senate version of the FY25 defense appropriations bill includes $45 million for investments in trusted printed circuit boards (PCBs) under the Defense Production Act. However, the House version does not include such funding. With a short-term “continuing resolution” likely to be enacted to fund the government from the start of the new fiscal year on October 1, IPC is intensifying its advocacy efforts to achieve a positive resolution on this issue. If your company operates in California or Connecticut, we could use your help in contacting key members of the House Appropriations Committee from California and Connecticut. If you’re willing to help, please contact IPC’s Rich Cappetto.

U.S. Rep. Darin LaHood Tours Zentech Manufacturing Facility : As part of an IPC swing through Illinois, Zentech Manufacturing recently hosted U.S. Rep. Darin LaHood (R-IL) at its facility in Bloomington, where he witnessed their impressive “mission critical manufacturing” capabilities and learned about the importance of investing in the domestic electronics ecosystem. While Congressman LaHood is not yet fully supportive of H.R. 3249, the Protecting Circuit Boards and Substrate Act, he showed interest in the concept of tax incentives for investments in the industry and shared our concerns about workforce development and security risks in critical infrastructure. The conversation underscored the vital role of reliable electronics in sectors ranging from defense to healthcare, agriculture, and communications. IPC will continue to engage Congressman LaHood and his staff on H.R. 3249 and related tax policy initiatives for 2025. IPC Contact: Rich Cappetto.

U.S. Sen. Ron Johnson (R-WI) Tours Mectronx Plant: Wisconsin-based Mectronx, which specializes in rapid prototyping, board fabrication and assembly, recently hosted staff from the office of U.S. Senator Ron Johnson (R-WI) for a plant tour. The tour showcased Mectronx capabilities and reinforced the importance of electronics manufacturing to the state’s economy, national security, and economic innovation. Mectronx has shared the IPC “silicon-to-systems” message, including support for tax incentives to promote domestic manufacturing of PCB and PCBAs. Senator Johnson is a senior member of the Senate Finance Committee, which has jurisdiction over federal tax policy. Company President Steve Lechtenberg said, “It’s vital for our representatives in Washington to understand the incredible work Mectronx does right here in Oconomowoc, and how important high-reliability electronics manufacturing is to our key supply chains. I encourage others to reach out to the IPC Advocacy team about hosting a tour for your representatives.” IPC Contact: Rich Cappetto.

QUOTE OF THE WEEK

“In this political and economic environment, companies are naturally hesitant to make long-term commitments. They need clarity and transparency on industrial policy, interest rates, and the broader economic landscape before they can move forward with confidence. The volatility we’re seeing, particularly around the election, means that many are taking a ‘wait and see’ approach, holding off on major investments until they know what the future holds.” — Shawn DuBravac, IPC Chief Economist, in an interview with EPS News about how the U.S. presidential election may affect electronics manufacturing.

UNITED STATES

U.S. Office of Strategic Capital Seeks Industry Input on Defense Technology Investments: The U.S. Office of Strategic Capital (OSC), established in December 2022 and formally codified under the FY2024 National Defense Authorization Act, aims to attract private capital to bolster critical technologies in the defense supply chain. According to its 2024 investment strategy, OSC's focus is on key enabling technologies at the component level across 31 critical technology areas. As the office progresses in developing a program of loans and loan guarantees, it is actively seeking input from companies, industry associations, lenders, and financial institutions regarding their capital needs. Comments are due by October 22, 2024. To support its members, IPC will present a briefing on the OSC's initiatives; more details will be shared soon. IPC Contact: Rich Cappetto

Navigating the U.S. Presidential Election’s Impact on Electronics Manufacturing: As the U.S. presidential election season unfolds, the potential implications for the electronics manufacturing industry are becoming increasingly relevant. In a recent interview with EPS News, IPC’s Chief Economist Shawn DuBravac discussed the uncertainty surrounding industrial policy, interest rates, and other critical issues. With the potential for shifts in policy and economic conditions, IPC encourages members to engage with local candidates and highlight the importance of electronics manufacturing in national security and competitiveness. Read the article and reach out to our Government Relations team if we can help facilitate these crucial conversations with your local political candidates. IPC Contact: Rich Cappetto.

EUROPEAN UNION

New FAQs on Requirements for EU Corporate Sustainability Reporting Directive: The European Commission has recently published a comprehensive FAQ document designed to assist companies in understanding and complying with the new Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). These address critical issues such as the scope of reporting, application dates, and specific exemptions. Notably, the FAQs clarify when companies can rely on estimates for environmental, social, and governance (ESG) data instead of collecting information directly from their value chain. The aim is to reduce administrative burdens while ensuring that reported information is both usable and comparable across the EU. If your company is affected by these regulations, let us know, and make sure to review the FAQs to stay informed and compliant with the latest standards. IPC Contact: Diana Radovan.

Revisions to Rolling Plan Include New Technical Exemptions Under RoHS Directive: The European Commission has released an updated version of the “Rolling Plan,” detailing the status of technical exemptions under the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive. This update is crucial information for companies that are navigating the exemption process, which allows for specific exemptions from the directive's restrictions under defined conditions. For example, the exemptions allow companies to apply for relief from certain restrictions based on factors such as the availability and reliability of substitutes, environmental and health impacts, socioeconomic considerations, and potential effects on innovation. The process for applying for or renewing an exemption is rigorous, involving a technical assessment, stakeholder consultation, and a decision period that can take 18 to 24 months. If these new technical exemptions affect your company, review the updated  Rolling Plan and contact IPC for assistance with your application to ensure proper compliance. IPC Contact: Diana Radovan.

WORKFORCE

IPC and Stephen F. Austin State University Partner on Workforce Development: IPC has joined forces with the Stephen F. Austin State University's Center for Applied Research and Rural Innovation (CARRI) in Nacogdoches, Texas and the IPC Education Foundation to elevate workforce development in electronics manufacturing. This strategic partnership will integrate IPC’s industry standards and certifications into SFASU’s engineering curriculum, providing students with vital skills and hands-on training. Supported by generous contributions from CARRI and Weller Tools, including advanced soldering equipment, the collaboration aims to bridge the gap between academia and industry, ensuring graduates are well-equipped to meet the evolving demands of the electronics manufacturing sector. This initiative is set to foster innovation, expand the talent pool, and contribute to the future of the industry. Read more on the IPC Blog. IPC Contact: Cory Blaylock.

UPCOMING EVENTS

Demystifying the EU Corporate Sustainability Due Diligence Directive (CSDDD) for the Electronics Manufacturing Industry (September 11, 2024, 10:00 AM CDT) – Join IPC, ITI, and Anthesis Group for an in-depth webinar that clarifies the complexities of the EU Corporate Sustainability Due Diligence Directive (CSDDD). This directive introduces legal obligations for businesses to respect human rights and environmental standards across their global value chains. The session will cover the scope and applicability of the CSDDD, offering insights into how companies can ensure their value chain actors adhere to these standards and implement good governance practices. Don’t miss this opportunity to gain critical insights from industry experts and ensure your business is prepared to meet these new requirements. Register for FREE here.

IPC APEX EXPO 2025: Anaheim, California, USA (March 15-20, 2025) – Discover the newest innovations and hear from the best minds in the electronics manufacturing industry. IPC APEX EXPO 2025 will be our industry’s largest event in North America, featuring a world-class trade show, professional development courses taught by industry experts, non-stop networking and more. Learn more here.

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Congressman Darin LaHood (16th district, IL) visited Zentech Bloomington today. We discussed Zentech's vital role in manufacturing products for our national security and critical infrastructure and the rewarding careers that manufacturing offers. We also discussed the significance of continued support and funding of the US defense industrial base.

U.S. election politics are top of mind in today’s news cycles, but how does the election affect those in the electronics industry? EPS News covered a recent interview between Shawn DuBravac, Ph.D., CFA and Philip Stoten discussing the U.S. election, or what Phil calls “an incredible, fast-moving circus,” providing insight into the latest industry intelligence on the economic factors affected by the upcoming election.

KEEP IN TOUCH WITH US 

Meet the IPC GR Team: Whether it is engaging with policymakers in the Americas, the European Union, or Asia, the IPC Government Relations (GR) Team proactively seeks opportunities to educate, inform and influence policymakers on policies that spur innovation, growth and competition, while protecting human health and the environment. But our success depends on your support and engagement. Learn more and get involved in IPC advocacy today! IPC Contact: Chris Mitchell.   

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