North American EMS Industry Up 14.9% in August


Reading time ( words)

IPC announced the August 2022 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.31.

Total North American EMS shipments in August 2022 were up 14.9 percent compared to the same month last year. Compared to the preceding month, August shipments increased 9.5 percent.

EMS bookings in August decreased 14.1 percent year-over-year and decreased 8.2 percent from the previous month.

“We continue to see order strength diminish, in line with a slowing economy and slowing demand for durable goods. At the same time, supply chain constraints, while still pronounced, appear to be easing somewhat and as a result shipment throughput has improved,” said Shawn DuBravac, IPC’s chief economist.

Companies that participate in IPC’s North American EMS Statistical Program have access to detailed findings on EMS sales growth by type of production and company size tier, order growth and backlogs by company size tier, vertical market growth, the EMS book-to-bill ratio, 3-month and 12-month sales outlooks, and other timely data.

August2022_IPC_EMS.jpg

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 EMS industry statistics are based on data provided by a representative sample of assembly equipment manufacturers selling in the USA and Canada. IPC publishes the EMS book-to-bill ratio by the end of each month.

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 more than 3,000 member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test and advanced packaging. 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 Washington, D.C.; Atlanta, Ga.; Miami, Fla.; Munich, Germany; Brussels, Belgium; Bangalore and New Delhi, India; Bangkok, Thailand; and Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou and Beijing, China.

Share




Suggested Items

Real Time with... IPC APEX EXPO 2023: Integrated Material Solutions

02/06/2023 | Real Time with...IPC APEX EXPO
Andy Shaughnessy meets with Paul Salerno of MacDermid Alpha to discuss integrated material solutions for board-level reliability.

Real Time with... IPC APEX EXPO 2023: Full Spectrum of Inspection

02/03/2023 | Real Time with...IPC APEX EXPO
Pete Starkey asks Brian D'Amico how MIRTEC is addressing the full spectrum of inspection requirements associated with the electronics manufacturing industry.

Real Time with... IPC APEX EXPO 2023: Positioning in the Market

02/01/2023 | Real Time with...IPC APEX EXPO
Mycronic’s Kevin Clue shares with guest editor Jesse Vaughan new innovations in Mycronic AOI and their position in the dispensing/coating equipment market. As a leading global partner for flexible PCB assembly solutions, Mycronic continues to respond to growing customer demand for standardized software integration and state-of-the-art inspection technologies. In addition to PCB assembly, jet printing, dispensing, coating and material handling solutions, the company has introduced major advances in 3D inspection technologies and factory connectivity.



Copyright © 2023 I-Connect007 | IPC Publishing Group Inc. All rights reserved.