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Book-to-Bill Strong, Should Continue
October 2, 2006 |Estimated reading time: 1 minute
BANNOCKBURN, Ill. The North American rigid circuit book-to-bill ratio for August 2006 rose to 1.06, while the flexible book-to-bill ratio grew to 1.05, shows a recent release from IPC Association Connecting Electronics Industries. The combined industry book-to-bill, encompassing rigid and flex circuits, was 1.05.
"Both rigid PCBs and flexible circuits did well in August," said Denny McGuirk, IPC president. "Year-to-date, the growth rate in North America sales over the same period last year is a healthy 9%. Bookings have outpaced shipments for the past three consecutive months," adds McGuirk, "which suggests this trend should continue into the fall."
Rigid shipments are up 8%, and bookings are up 7.7% from August 2005, states IPC. Year-to-date, rigid shipments are up 10.6% and bookings rose 13.8%. Rigid PCB shipments rose 15.6% from July 2006, and rigid bookings grew 16.9% during that same period.
Flexible shipments jumped 27%, and bookings also rose 30.5% in August 2006. Year-to-date, flexible shipments are up just 4.5%, while bookings dropped 8.4%. Flexible circuit shipments rose 20.7% and bookings saw a 30.9% increase from July 2006.
For rigid and flexible circuits combined, industry shipments are up 9.3% from August 2005, and orders booked rose 9% in that timeframe. Combined shipments for August 2006 are up 16% over July 2006, with bookings up 17.8%.
These ratios are based on monthly data collected from PCB producers that participate in IPC's monthly PCB Statistical Program, and are calculated by dividing the values of orders booked over the past three months by the value of sales billed during the same period.
In August 2006, the IPC states that 89% of total PCB shipments reported in its survey were produced domestically. This domestic production accounted for 86% of rigid PCB and 95% of flexible circuit shipments of IPC's August survey participants. These same participants noted that bare circuit accounted for 74% of shipments in August 2006.