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Supply Chain Tracker Notes Beginning of Recovery
June 5, 2009 |Estimated reading time: 1 minute
BANNOCKBURN, IL The spring 2009 edition of the quarterly business report, Supply Chain Tracker, from IPC Association Connecting Electronics Industries showed continuing economic contraction. However, it also indicated the first signs of recovery in the electronics industry.
IPC's global statistical programs for several key industry segments all show worsening year-on-year growth rates in Q'01 2009, after growth rates turned negative in late 2008. IPC's North American Electronics Industry Performance Index fell 29%. This is the third straight quarter the index has declined. This index, a new addition to Supply Chain Tracker, monitors the performance of the North American electronics supply chain.
Some leading indicators, however, are beginning to show improvement. The April 2009 book-to-bill ratio for the North American printed circuit board (PCB) industry climbed for the third straight month from 0.89 to 0.97. This ratio still indicates lagging demand, but it is trending toward 1.0, the point of parity between bookings and shipments. The North American EMS book-to-bill ratio inched up to 0.95 at the end of first quarter. Semiconductor sales, while still in negative territory, improved in first quarter 2009.
Supply Chain Tracker contains the latest findings from IPC's statistical programs for industries across the electronic interconnect supply chain. It includes macroeconomic data, leading indicators and analysis of industry trends. Together they provide a complete picture of the industry and the supply chain dynamics that affect businesses. The quarterly business report is available by subscription and as a free benefit of membership to IPC member companies. Subscribers and IPC members also now receive an interactive graph with every edition of the report. This graph enables members to enter company performance data and see how they compare to the performance of various segments of the electronics industry.
For more information, contact Sharon Starr, IPC director of market research, at sharonstarr@ipc.org or Sree Bhagwat, IPC market research manager, at sreebhagwat@ipc.org.