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IPC Releases December Book to Bill
February 1, 2010 |Estimated reading time: 3 minutes
BANNOCKBURN, IL — IPC — Association Connecting Electronics Industries announced the December findings from its monthly North American Printed Circuit Board (PCB) Statistical Program, showing strong booking increases from December 2008 for rigid PCBs. Flex circuits did not fare as well, as the flexible PCB book-to-bill ratio dropped below parity.
Rigid PCB shipments declined 3.4%, but bookings were up 27.3% in December 2009 from December 2008. Year to date, rigid PCB shipments were down 23.2% and bookings fell by 18.1%. Compared to the previous month, rigid PCB shipments increased 13.2% and rigid bookings increased 23.3%. Rigid PCBs represent an estimated 91% 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 December 2009 registered 1.05.
Flexible circuit shipments in December 2009 went down 0.4% and bookings decreased 27.4% compared to December 2008. Year to date, flexible circuit shipments were down 1.1% and bookings were down 4.9%. Compared to the previous month, flexible circuit shipments went up 4.9% and flex bookings fell by 2.9%. In December, the flexible circuit manufacturers in IPC’s survey sample indicated that bare circuits accounted for approximately 74% of their shipment value reported for the month. The North American flexible circuit book-to-bill ratio in December 2009 slipped back to 0.95.
For rigid PCBs and flexible circuits combined, industry shipments in December 2009 decreased 3.2% from December 2008, and orders booked increased 22.1% from December 2008. Year to date, combined industry shipments were down 21.7% and bookings were down 17.2%. Compared to the previous month, combined industry shipments for December 2009 increased 12.6% and bookings went up 21.5%. The combined (rigid and flex) industry book-to-bill ratio in December 2009 dipped but remained positive at 1.04.
“Growth rates in both sales and orders continued to improve in the rigid PCB sector in December,” said IPC President Denny McGuirk. “Orders continued to outpace sales, which is keeping the rigid PCB book-to-bill ratio positive. Although the flexible circuit business was lackluster in December, both sectors of the PCB industry in North America showed typical seasonal patterns. The recovery is continuing, but the road back up is proving to be a long one.”
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 December 2009, 86% of total PCB shipments reported were domestically produced. Domestic production accounted for 86% of rigid PCB and 84% of flexible circuit shipments in December by IPC survey participants. These numbers are significantly affected by the mix of companies in IPC’s survey sample, which may change slightly in January, but are kept constant through the calendar year.
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 six months. 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. For more information, visit www.IPC.org
2009 IPC Book-to-Bill Reports: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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