PCB manufacturers squeezed from both sides: Spiraling material costs force PCB price increases

摘要

Since the boom came to an end in 2000, a seemingly endless decline in component and taw materials prices set in. This brought no joy to anyone except the buyers. For too long, it seemed that any price stipulated, however low, would be accepted, as if placing an order was an act of benevolence. Component manufacturers were looking visibly more relaxed by mid-2003. This started in Asia, progressed to the USA and reached Europe by autumn 2003. The electronics sector's longest-ever recession was over. Order books filled up, at a frenzied pace in some cases. The pendulum swung to the opposite and the sensitive balance between supply and demand now fell slightly in favor of the component manufacturers. But their glee over full order books was short-lived. For about the last year, the long-suffering raw materials manufacturers have been fighting back, increasing prices repeatedly, often by double digit percentages. Bear in mind that materials account for between 35-45% of costs for European and American PCB manufacturers. Along with personnel costs, it is a crucial determinant of business profitability.