NA PCB Industry Book-to-Bill Ratio Retreated to 1.00 for March


Reading time ( words)

IPC — Association Connecting Electronics Industries announced today the March 2019 findings from its North American Printed Circuit Board (PCB) Statistical Program. Year-over-year growth in March was strong for sales but slipped into negative territory for orders, while the book-to-bill ratio retreated to parity at 1.00.

Total North American PCB shipments in March 2019 were up 19.1% compared to the same month last year. Year-to-date sales growth as of March was 16.4%. Compared to the preceding month, March shipments jumped 32.9%.

PCB bookings in March decreased 0.9% year-over-year, bringing year-to-date order growth down to a positive 2.4%. Bookings in March were up 10.1% from the previous month.

“Strong sales for the North American PCB industry in March, combined with lackluster order growth, brought the book-to-bill ratio down to 1.00, its lowest level in more than two years,” said Sharon Starr, IPC’s director of market research. “Year-over-year sales growth has outpaced order growth for the past 10 months, indicating the likelihood of slowing sales growth in the coming months.”

pcb2.jpg

Note: The March 2018, November 2018 and January 2019 growth rates have been revised since their original publication due to updated data from statistical program participants.

The first-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-May. 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.

Share

Print


Suggested Items

EIPC Summer Conference 2019, Day 1

09/10/2019 | Alun Morgan, EIPC
The beautiful city of Leoben in central Austria provided the setting for the EIPC 2019 Summer Conference. In this article, EIPC Chairman Alun Morgan provides the highlights of the first day of the event, including a recap of the technical presentations.

NCAB 2019 Market Report: Competition Is Heating Up

09/09/2019 | Nolan Johnson, I-Connect007
Chris Nuttall, chief operations officer and VP of technology of NCAB Group, talks about the company's most recently released market report. Nolan Johnson and Nuttall discuss some of the market drivers and conditions the industry can expect to close out in 2019 as well as what to prepare for in 2020.

Meet Mike Hill, I-Connect007 Columnist

09/02/2019 | I-Connect007
Mike Hill has been in the PWB fabrication industry for over 40 years. Throughout his career, he has been a member of IPC and participated in specification writing for both IPC and the military. Within IPC, he has received the President's Award, General Chairmanship, Committee Chairmanship, and many other recognitions. In his columns, Mike will help you better understand the requirements and how-to's for MIL-PRF-31032 certification for PWB fabrication.



Copyright © 2019 I-Connect007. All rights reserved.