“Even if (something) like a transmission is finally assembled in the United States, it's sourcing products from all three countries [the U.S., Canada, and Mexico]. A hiccup in just one of those not only will shut down a major component, like a transmission or an interior, but then you can't build the rest of the vehicle.”

– Collin Shaw, president of MEMA Original Equipment Suppliers, echoing IPC member concerns that U.S. tariffs on Canada and Mexico could introduce substantial delays into his industry’s production processes.

 

Supply Chain Issues Raised at Hearing on Commerce Nominee:  The United States’ industrial base and supply chain worries were among the topics raised at recent confirmation hearings for Commerce Secretary-designate Howard Lutnick. Thanks in part to IPC advocacy efforts, Sen. Marsha Blackburn (R-TN) raised the issue, telling Lutnick, “I’ve done a good bit of work on auto manufacturing as Tennessee has become such a manufacturing center, and … on securing these supply chains for the American auto manufacturing sector. And we want to make certain that whether it's autos, appliances, equipment for data centers and computers, … or the components that are needed for high-tech assembly, we need to make certain that we straighten out the supply chain system so that we are able to repatriate US manufacturing.” Lutnick replied, “Exactly. We need to bring manufacturing and supply chain domestic … I completely agree.” IPC will continue to cultivate strong relationships in Congress and the Commerce Department to support a stronger U.S. electronics supply chain from silicon-to-systems, including PCB fabrication and PCB assembly. IPC Contact: Rich Cappetto.

 

European Commission Prepares Automotive Action Plan: The future of the automotive sector is high on the agenda for the European Commission, which has launched a short-deadline consultation on the issue here. The consultation follows the official launch of a strategic dialogue on the automotive industry. IPC welcomes the initiative. As the European Commission prepares an action plan for the sector, we will emphasize the critical role of electronics and the urgent need for a corresponding European electronics manufacturing strategy. Addressing the industry’s capacities and dependencies is essential, as outlined in our study Securing Europe’s Electronics Ecosystem and our accompanying Call to Action. IPC Contact: Alison James.

European Commission Presents “Competitiveness Compass” Plan: The European Commission last week presented its “Competitiveness Compass,” a blueprint for the EC policy process for the next five years. The document sets out an array of measures to translate three major imperatives into reality: “closing the innovation gap”; decarbonisation; and “reducing excessive dependencies and improving security.” IPC welcomes the plan’s emphasis on simplifying regulations, reducing reporting burdens, and building workforce skills as “horizontal enablers.” As concrete measures are now proposed and put into place to advance these priorities, IPC will continue to call on policymakers to integrate a comprehensive electronics manufacturing strategy into the European competitiveness strategy. IPC Contact: Alison James.

Toulouse Fire Revealed Vulnerability of Europe’s PCB Sector: A devastating fire last August at electronics manufacturer CSI Sud Ouest in Toulouse, France had “troubling implications” for Europe’s aeronautic, space, and other critical downstream industries. In an excellent essay in Euractiv, CSI CEO Eric DePonthaud says CSI was a key supplier to the French aerospace industry, and the fire revealed “alarming” vulnerabilities because the declining number of European PCB companies “cannot easily meet regional demand when major supply chain disruptions occur.” The article cites IPC’s 2024 report on Europe’s electronics industrial base, which found Europe is falling behind its global competitors in both capacity and capabilities. “If Europe is to maintain its position as a leader in global technology and secure its defence industrial base, we must prioritize policies that encourage investment in our sector,” as called for in the European electronics industry’s call-to-action. “The time for action is now before it’s too late.”  IPC Contact: Alison James.

 

IPC Driving Electronics Advocacy Across South Asia: In an IPC blog published this week, Arpita Das, IPC India’s Deputy Manager of Events and Communications, shared how IPC is making a significant impact across South Asia, strengthening government relationships and supporting the region’s booming electronics and manufacturing industries. Recent developments include India’s removal of import duties on key electronic components, Malaysia’s workforce upskilling initiatives, and the UAE’s expanding wire harness market. Learn how IPC is shaping the future of electronics in South Asia here. IPC contact: Gaurab Majumdar.

 

IPC Members Invited to Participate in New PFAS Survey: The European Chemicals Agency (ECHA) and its committees have highlighted concerns regarding PFAS emissions from fluoropolymers, particularly during manufacturing and waste disposal. In response, the Fluoropolymer Group of Plastics Europe has commissioned consulting firm Ramboll to assess waste management practices, including incineration, landfilling, and recycling. To support this effort, Ramboll has developed an online survey to collect critical data. Your participation is essential in shaping future discussions and decision-making. Access the survey here by the 14 March deadline. IPC Contact: Diana Radovan.

European Chemicals Agency Publishes Annual Report and Planning Document: The European Chemicals Agency (ECHA) has published its Single Programming Document for 2025 to 2027, setting out the actions, indicators, and resources to be used in regulating chemicals for the next few years. ECHA's mid-term priorities are set out in the strategic planning document, which is part of the overall document, which also includes sub-reports that describe ECHA’s priority tasks, and annual reports outlining the Agency's achievements each year. IPC is still assessing the programming document and its impact on electronics. Please let us know if you have questions or concerns. IPC Contact: Diana Radovan.

 

IPC EMS Leadership Roundtable: Public Policy and Your Business (Washington, DC), Feb. 19-20: If you care about the future of the EMS sector, join us in DC to dive into key policy topics, network with industry leaders, enjoy a reception and dinner, and participate in optional meetings with policymakers to shape the future of EMS. Learn more and register here.

IPC APEX EXPO 2025 (Anaheim, California), Mar. 15-20: 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 and register here.

 

Curious about how tariffs, inflation, and labor markets are shaping the economy? In the latest episode of EMS & The Economist, IPC Chief Economist Shawn DuBravac, Ph.D., CFA, joins Philip Stoten to break down key trends influencing investment decisions.

AI is transforming workplaces, but is it improving job quality or making work more exploitative? The AFL-CIO is pushing for worker-centered AI policies to ensure technology enhances jobs rather than undermines them.