The electronics industry is facing a significant downturn, with 45% of electronic component base (ECB) manufacturers reporting their business status as problematic. According to a July survey by Electronica Connect, a community of over 40,000 specialists, 63% of these companies saw a revenue decline over the last six months.
Electronic device manufacturers are also struggling, as 58% reported revenue drops and none of the participants in this sector noted any growth. In contrast, the engineering and integration sector remains the most stable, with 40% of its companies describing their current business state as good.
Across the entire industry, 23% of participants evaluate their business as poor, 47% as average, and only 24% as good or very good. Overall, 54% of companies experienced a revenue decrease, with 17% reporting a significant drop. Personnel cuts were made by 36% of firms, and 34% reduced their capital investments.
The primary systemic barriers identified are falling demand (49%), rising costs of components and equipment (34%), and limited financing availability (32%). Experts attribute this to high interest rates, increased tax burdens, and a shift in government support from direct subsidies to preferential loans from the Industrial Development Fund (FRP).
Looking ahead, 30% of companies expect revenue growth and 30% expect a decline over the next six months. While 56% plan to maintain current staff and investment levels, 28% anticipate further staff cuts and 29% expect to reduce investments. 50% of participants plan to launch new products or services, while 43% focus on cost optimization.
Electronic device manufacturers show a strong product strategy, with 89% planning to update their product lines despite the fact that 58% of them have seen revenue declines and none have reported growth.
