N.A. PCB Sales Down in July, Book-to-Bill Ratio Remained at Parity


Reading time ( words)

IPC—Association Connecting Electronics Industries announced today the July 2019 findings from its North American printed circuit board (PCB) Statistical Program. Sales growth in July turned negative, following order growth into negative territory. The book-to-bill ratio remained at parity (1.00).

Total North American PCB shipments in July 2019 were down 5.3% compared to the same month last year. Year-to-date sales growth as of July remained positive at 8.3%. Compared to the preceding month, July shipments decreased 23.1%.

PCB bookings in July decreased 4.3% year-over-year, bringing year-to-date order growth down to a positive 1.2%. Bookings in July were down 17.8% from the previous month.

 “Year-on-year declines in orders in seven of the last 12 months are taking a toll on sales growth in the North American PCB industry,” said Sharon Starr, IPC’s director of market research. “Sales growth has slowed in recent months and dipped into negative territory in July. The slowdown is reflected in the book-to-bill ratio, which has hovered around 1.00 in the last five months. This indicates the probability of flattening sales growth in the second half of the year.”

Detailed Data Available

The third-quarter 2019 edition of IPC’s North American PCB Market Report, containing detailed data from IPC’s PCB Statistical Program, will be published by mid-November. The quarterly report presents detailed findings on rigid PCB and flexible circuit sales and orders, including separate rigid and flex book-to-bill ratios, growth trends by product types and company size tiers, demand for prototypes, sales growth to military and medical markets, and other timely data. This report is available free to current participants in IPC’s PCB Statistical Program and by subscription to others. PCB companies that are IPC members doing business in North America are invited to contact marketresearch@ipc.org for information about participating. More information about this report can be found at www.ipc.org/market-research-reports.

Interpreting the Data

The book-to-bill ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period from companies in IPC’s survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next three to twelve months. A ratio of less than 1.00 indicates the reverse.

Year-on-year and year-to-date growth rates provide the most meaningful view of industry growth. Month-to-month comparisons should be made with caution as they reflect seasonal effects and short-term volatility. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month might not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in both bookings and shipments to understand what is driving changes in the book-to-bill ratio.

IPC’s monthly PCB industry statistics are based on data provided by a representative sample of both rigid PCB and flexible circuit manufacturers selling in the USA and Canada. IPC publishes the PCB book-to-bill ratio at the end of each month. Statistics for the current month are normally available in the last week of the following month.

PCB1.jpg

PCB2.jpg

About IPC

IPC (www.IPC.org) is a global industry association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 5,400-member company sites which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $2 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Washington, D.C.; Atlanta, Ga.; Stockholm, Sweden; Brussels, Belgium; Moscow, Russia; Bangalore and New Delhi, India; Bangkok, Thailand; and Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou and Beijing, China.

Share

Print


Suggested Items

Flex Standards Update With Nick Koop

11/21/2019 | Andy Shaughnessy, Design007 Magazine
This month, I interviewed Nick Koop—director of flex technology at TTM Technologies, a veteran “flex guy” and instructor, and a leader of several IPC flex standards committees. Nick provides an update for the committees he’s involved with and discusses some of the challenges that he sees as more designers enter the world of flex.

Meet George Milad, I-Connect007 Columnist

10/31/2019 | I-Connect007 Editorial Team
Meet George Milad, one of our newest I-Connect007 columnists! George’s columns will cover PCB plating, IPC specifications, and more. George is the recipient of the 2009 IPC President’s Award, chairs the IPC Plating Committee, and is a permanent member of the IPC Technical Activities Executive Committee.

Communication, Part 4: The Top 5 Causes of Engineering Delays

10/25/2019 | Steve Williams, The Right Approach Consulting LLC
In Part 4 of this series on how PCB fabricators and designers can better communicate, Bob Chandler from CA Design and Mark Thompson from Prototron Circuits address the top five causes of engineer delays.



Copyright © 2019 I-Connect007. All rights reserved.