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October 2009 PCB Orders, Shipments Still Indicating Growth
November 24, 2009 |Estimated reading time: 2 minutes
BANNOCKBURN, IL — IPC — Association Connecting Electronics Industries announced the October findings from its monthly North American Printed Circuit Board (PCB) Statistical Program, with flex and rigid PCBs both showing positive book-to-bill ratios despite lower volumes.
Rigid PCB shipments declined 14.0% and bookings were down 2.1% in October 2009 from October 2008. Year to date, rigid PCB shipments were down 26.0% and bookings fell by 22.7%. Compared to the previous month, rigid PCB shipments declined 7.8% and rigid bookings decreased 16.2%. 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 October 2009 increased slightly to 1.10.
Flexible circuit shipments in October 2009 went up 4.3% and bookings decreased 2.6% compared to October 2008. Year to date, flexible circuit shipments were down 0.9% and bookings were down 4.7%. Compared to the previous month, flexible circuit shipments went down 14.1% and flex bookings fell by 30.9%. In October, the flexible circuit manufacturers in IPC’s survey sample indicated that bare circuits accounted for approximately 76% of their shipment value reported for the month. The North American flexible circuit book-to-bill ratio in October 2009 climbed to 1.00.
For rigid PCBs and flexible circuits combined, industry shipments in October 2009 decreased 12.8% from October 2008 and orders booked decreased 2.1% from October 2008. Year to date, combined industry shipments were down 24.4% and bookings were down 21.5%. Compared to the previous month, combined industry shipments for October 2009 decreased 8.3% and bookings went down 17.4%. The combined (rigid and flex) industry book-to-bill ratio in October 2009 reached 1.09.
“Although year-on-year growth rates are still mostly negative, we can see a positive growth trend in North American PCB sales and orders compared to most earlier months in 2009,” said IPC president Denny McGuirk. “Declines in sales from September to October of this year reflect a seasonal trend that we typically see at the beginning of a new quarter,” he added. “The overall trend, however, is upward and that is also reflected in the book-to-bill ratio, which has remained high for the past six 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. IPC asks survey participants for the percent of their reported shipments that were produced domestically (i.e., in the USA or Canada). In October 2009, 87% of total PCB shipments reported were domestically produced. Domestic production accounted for 87% of rigid PCB and 89% of flexible circuit shipments in October by IPC survey participants.
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. 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:September 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