-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueBox Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
Boost Your Sales
Every part of your business can be evaluated as a process, including your sales funnel. Optimizing your selling process requires a coordinated effort between marketing and sales. In this issue, industry experts in marketing and sales offer their best advice on how to boost your sales efforts.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
IPC Releases New Book-to-Bill Ratios and IMS/PCB Business Report for August 2005
September 29, 2005 | IPCEstimated reading time: 4 minutes
IPC--Association Connecting Electronics Industries--announced today the findings from its monthly Printed Circuit Board (PCB) Statistical Program.
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
PCB Book-to-Bill Ratios
The North American rigid PCB industry book-to-bill ratio for August 2005 returned to the positive range at 1.01, while the North American flexible circuit book-to-bill ratio continued high at 1.62. These ratios are based on monthly data collected from PCB producers that participate in IPC's monthly PCB Statistical Program. The combined (rigid and flex) industry book-to-bill ratio in August 2005 remained at 1.16. This combined ratio has become less relevant to analysts, however, due to the divergence between the rigid PCB and flexible circuit segments of the industry in growth rates and book-to-bill patterns.
The 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 the companies in IPC's survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which indicates probable near-term growth.
Rigid PCB Growth
Rigid PCB shipments are down 0.6 percent and bookings are up 3.5 percent in August 2005 from August 2004. Year to date, rigid PCB shipments are down 5.3 percent and bookings are down 3.8 percent. Rigid PCB shipments from the survey sample increased 15.4 percent from the previous month and rigid bookings increased 30.5 percent from the previous month.
Flexible Circuit Growth
Flexible circuit shipments are up 38.1 percent and bookings are up 65.9 percent in August 2005 from August 2004. Year to date, flexible circuits shipments are up 27.3 percent and bookings are up 20.7 percent. Compared to the previous month, flexible circuit shipments from the survey sample increased 10.8 percent and flex bookings decreased 20.2 percent.
Total Industry Growth
For rigid PCBs and flexible circuits combined, industry sales billed (shipments) in August 2005 increased 7.2 percent from August 2004, and orders booked increased 14.6 percent from August 2004. Year to date, combined industry shipments are up 0.7 percent and bookings are up 1.9 percent. Combined industry shipments for August 2005 are up 14.1 percent over the previous month, and bookings are up 12.1 percent over the previous month.
"The August numbers are back up after a typically slow July," said IPC President Denny McGuirk. "Overall PCB sales are staying pretty flat, and rigid PCBs will probably end the year a little below 2004. What is encouraging, though, is the current growth in bookings. This is giving us positive book-to-bill ratios in both segments, which is a good sign for near-term business."
The book-to-bill ratios and growth rates for rigid PCBs and flexible circuits combined are heavily affected by the rigid PCB segment, which represents more than 75 percent of the current PCB market in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />North America. The influence of flexible circuits is growing, however, as flexible circuit shipments have shown stronger growth than rigid PCBs over the past two years.
The Role of Domestic Production
IPC's monthly survey of the North American PCB industry tracks bookings and shipments from U.S. and Canadian facilities, which provide indicators of regional demand. These numbers do not measure U.S. and Canadian PCB production. IPC asks survey participants for the percent of their reported shipments that were produced domestically (i.e., in the USA or Canada). In August 2005, 73 percent of total PCB shipments reported were domestically produced. Domestic production accounted for 87 percent of rigid PCB and 33 percent of flexible circuit shipments in August.
Bare Circuits Versus Assembly
Flexible circuit sales typically include some value-added services, such as assembly, in addition to the bare flex circuits. In August, the flexible circuit manufacturers in IPC's survey sample indicated that bare circuits accounted for about 19 percent of their shipment value reported for the month.
Interpreting the Data
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 may reflect cyclical effects. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month-to-month may not be significant unless a trend of three consecutive months or more is apparent. It is also important to consider changes in bookings and shipments to understand what is driving changes in the book-to-bill ratio.
The information in IPC's monthly PCB industry statistics is based on data provided by a representative sample of both rigid and flexible PCB manufacturers in the USA and Canada. IPC publishes the PCB Book-to-Bill Ratio and the Interconnect Manufacturing Services (IMS) Business Report each month. Statistics for the previous month are not available until the last week of the following month.
For more information, contact IPC Director of Market Research Sharon Starr at SharonStarr@ipc.org or 847-597-2817.
About IPC
IPC is a global trade association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its more than 2,200 member companies, which represent all facets of the electronic interconnection industry, including design, printed circuit board manufacturing and electronics assembly. 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 a $40 billion U.S. industry employing more than 350,000 people. IPC maintains additional offices in Taos, N.M.; Washington, D.C.; Garden Grove, Calif.; Stockholm, Sweden; and Shanghai, China. For more information, visit www.ipc.org