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IPC January PCB Book-to-Bill Shows Growth
February 28, 2010 |Estimated reading time: 3 minutes
BANNOCKBURN, IL — IPC — Association Connecting Electronics Industries released the January findings from its monthly North American Printed Circuit Board (PCB) Statistical Program, showing both rigid and flex PCBs in positive territory, with a combined book-to-bill ratio of 1.05. “The best news from our January PCB surveys is the huge growth in orders compared to January of last year,” said IPC president Denny McGuirk.
Rigid PCB shipments are down 2.0% while bookings increased 19.8% in January 2010 from January 2009. Rigid PCBs represent an estimated 90% of the current PCB industry in North America, according to IPC’s World PCB Production and Laminate Market Report. The book-to-bill ratio for the North American rigid PCB industry in January 2010 remained strong at 1.06.
Flexible circuit shipments in January 2010 were down 4.1% but bookings were up 59.3% compared to January 2009. In January, the flexible circuit manufacturers in IPC’s survey sample indicated that bare circuits accounted for about 56% of their shipment value reported for the month. The North American flexible circuit book-to-bill ratio climbed above parity to 1.03.
For rigid PCBs and flexible circuits combined, industry shipments in January 2010 decreased 2.1% from January 2009, as orders booked increased 22.2% from January 2009. The combined (rigid and flex) industry book-to-bill ratio in January 2010 held steady at 1.05.
“Sales are still down slightly from last year but are increasing steadily,” he added. “The book-to-bill ratio for all PCBs has stayed above 1.0 for nine months now, indicating continued sales growth in 2010,” McGuirk noted. 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 two to three months.
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. To track regional production trends, however, IPC asks survey participants for the percent of their reported shipments that were produced domestically (i.e., in the USA or Canada). In January 2010, 82% of total PCB shipments reported were domestically produced. Domestic production accounted for 82% of rigid PCB and 72% of flexible circuit shipments in January by IPC’s survey participants. These numbers are significantly affected by the mix of companies in IPC’s survey sample, which changed slightly in January but will remain constant through the remainder of the year.
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. Every January, IPC opens its monthly statistical programs to new participants, resulting in a slight change in the survey sample. Therefore, January’s month-to-month growth rates are not available. Reporting of month-to-month and year-to-date growth rates will resume next month. 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.
2009 IPC Book-to-Bill Reports:IPC Releases December Book to Bill Holiday Demand Tapers, November PCB Book-to-Bill Dips October 2009 PCB Orders, Shipments Still Indicating GrowthSeptember Book-to-Bill Above Parity: 1.08IPC August PCB Book-to-Bill Ratios Steady at ParityIPC's July Book-to-bill Stays Just Above Parity 2009 PCB Orders Down 30% Year-to-Date, June Book-to-Bill PositiveMay PCB Orders Outpace ShipmentsApril PCB Book-to-Bill Shows Glimpse of RecoveryQ'02 Facing Soft Market; March PCB Book-to-Bill ReleasedRigid PCB Book-to-Bill Remains Low in February, Flex Moves UpJanuary PCB Book-to-Bill Drops to 0.89
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