IPC - AssociationConnecting Electronics Industries® has announced the June findingsfrom its monthly North American Printed Circuit Board (PCB)Statistical Program.
PCBIndustry Growth Rates and Book-to-Bill RatiosAnnounced
Rigid PCBshipments declined 30.8% and bookings were down 16.6% in June 2009from June 2008. Year to date, rigid PCB shipments are down 29.3%and bookings fell by 29.6%. Compared to the previous month, rigidPCB shipments grew 18.6% and rigid bookings increased 27.9%. Thebook-to-bill ratio for the North American rigid PCB industry inJune 2009 continued climbing to 1.12.
Flexible circuitshipments in June 2009 went down 3.1%, but bookings are up 4%compared to June 2008. Year to date, flexible circuit shipments areup 1.5% and bookings are down 5%. Compared to the previous month,flexible circuit shipments went up 21.3% and flex bookingsincreased 28.7%. The North American flexible circuit book-to-billratio in June 2009 reached 1.02.
For rigid PCBs andflexible circuits combined, industry shipments in June 2009decreased 29% from June 2008 and orders booked decreased 15.1% fromJune 2008. Year to date, combined industry shipments are down 27.3%and bookings are down 28%. Compared to the previous month, combinedindustry shipments for June 2009 increased 18.9% and bookings wentup 28%. The combined (rigid and flex) industry book-to-bill ratioin June 2009 climbed to 1.11.
"Although PCBsales in June were still well below last year's levels, the growthrates are improving," said IPC President Denny McGuirk. "Bookingsare recovering and that is reflected in the book-to-bill ratio,which is the highest we've seen in over three years," he added."That will help to drive stronger sales growth in the comingmonths."
The book-to-billratios are calculated by dividing the value of orders booked overthe past three months by the value of sales billed during the sameperiod from companies in IPC's survey sample. A ratio of more than1.00 suggests that current demand is ahead of supply, which is apositive indicator for sales growth over the next two to sixmonths.
Book-to-billratios and growth rates for rigid PCBs and flexible circuitscombined are heavily affected by the rigid PCB segment. Rigid PCBsrepresent an estimated 91 percent of the current PCB industry inNorth America, according to IPC's World PCB Production and LaminateMarket Report.
The Role ofDomestic Production
IPC's monthlysurvey of the North American PCB industry tracks bookings andshipments from U.S. and Canadian facilities, which provideindicators of regional demand. These numbers do not measure U.S.and Canadian PCB production. To track regional production trends,however, IPC asks survey participants for the percent of theirreported shipments that were produced domestically (i.e., inthe U.S. or Canada). In June 2009, 88% of total PCB shipmentsreported were domestically produced. Domestic production accountedfor 88% of rigid PCB and 83% of flexible circuit shipments in Juneby IPC survey participants. These numbers are significantlyaffected by the mix of companies in IPC's survey sample, which maychange slightly in January, but are kept constant through thecalendar year.
BareCircuits Versus Assembly
Flexible circuitsales typically include value-added services such as assembly, inaddition to the bare flex circuits. In June, the flexible circuitmanufacturers in IPC's survey sample indicated that bare circuitsaccounted for approximately 68% of their shipment value reportedfor the month. Assembly and other services make up a large andgrowing segment of flexible circuit producers' businesses. Thisfigure is also sensitive to changes in the survey sample, which mayoccur at the beginning of each calendar year.
Interpreting the Data
Year-on-year andyear-to-date growth rates provide the most meaningful view ofindustry growth. Month-to-month comparisons should be made withcaution as they may reflect cyclical effects. Because bookings tendto be more volatile than shipments, changes in the book-to-billratios from month to month may not be significant unless a trend ofthree consecutive months or more is apparent. It is also importantto consider changes in bookings and shipments to understand what isdriving changes in the book-to-bill ratio.
The information inIPC's monthly PCB industry statistics is based on data provided bya representative sample of both rigid and flexible PCBmanufacturers in the U.S. and Canada. IPC publishes the PCBBook-to-Bill Ratio and the PCB Statistical Program Report eachmonth. Statistics for the previous month are not available untilthe last week of the following month.
AboutIPC
IPC is a globaltrade association based in Bannockburn, Illinois, dedicated to thecompetitive excellence and financial success of its 2,700 membercompanies which represent all facets of the electronics industry,including design, printed board manufacturing, electronics assemblyand test. As a member-driven organization and leading source forindustry standards, training, market research and public policyadvocacy, IPC supports programs to meet the needs of an estimated$1.7 trillion global electronics industry. IPC maintains additionaloffices in Taos, New Mexico; Arlington, Virginia; Garden Grove,California; Stockholm, Sweden; Moscow, Russia; and Shanghai andShenzhen, China.