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IPC Quarterly Report hints at signs of economic recovery.

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September 30, 2009 - Summer 2009 edition of Supply Chain Tracker shows that key industry segments in Q2 reflected slowing decline. North American Electronics Industry Performance Index of -29 shows flattening trend that may indicate industry has hit bottom. Dry film sales, registering at -23.9%, are slowly increasing, while sales in EMS industry have yet to see signs of recovery. Leading indicators improved, such as book-to-bill ratio for rigid PCBs, which at 1.08, means demand exceeds current supply.

IPC Quarterly Report Tells of Early Signs of Recovery


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IPC-Association Connecting Electronics Industries
3000 Lakeside Drive
Bannockburn, IL, 60015
USA



Press release date: September 25, 2009

BANNOCKBURN, Ill., USA, September 25, 2009 - IPC - Association Connecting Electronics Industries® released the summer 2009 edition of its quarterly business report, Supply Chain Tracker, showing signs of recovery in most sectors of the electronics industry. The global economy began to recover in the second quarter with many countries registering positive GDP growth rates. The U.S. economy's long decline, however, leveled off in the second quarter with GDP growth registering at -1 percent.

IPC statistics for several key industry segments in the second quarter reflected a slowing decline. IPC's North American Electronics Industry Performance Index showed no improvement from first quarter to second quarter 2009. The index now stands at -29, but the flattening trend may indicate that the industry has finally hit bottom. Most economic indexes remain low, but are starting to climb.

Electronic interconnect supplier industries are starting to show improvement. Semiconductor sales continue to rise in the second quarter of 2009. Although still in negative territory, dry film sales are slowly increasing. The year-on-year growth rate for dry film in the second quarter registered -23.9 percent compared to -41.9 percent in the first quarter. Sales in the EMS industry have yet to see clear signs of recovery. IPC's EMS book-to-bill ratio has been below parity for the past nine months, dipping to a low of 0.88 in June, but moving back up to 0.94 by August. Supply continues to outpace demand in this industry segment.

Some leading indicators are beginning to show improvement. IPC's PCB book-to-bill ratio is a good predictor of near-term growth. In the rigid PCB segment, bookings gained strength and exceeded sales throughout the second quarter of 2009, causing a dramatic rise in the book-to-bill ratio. The book-to-bill ratio for rigid PCBs now stands at 1.08, which reflects a level of demand that exceeds the current supply of PCBs in North America.

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. Members can download this graph and securely enter their company performance data to see how they compare to the performance averages of various segments of the electronics industry.

For more information on Supply Chain Tracker and other IPC statistical programs, contact Sharon Starr, IPC director of market research, at SharonStarr@ipc.org or +1 847-597-2817.

About IPC
IPC (www.IPC.org) is a global trade association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 2,700 member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $1.7 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Arlington, Va.; Garden Grove, Calif.; Stockholm, Sweden; Moscow, Russia; and Shanghai and Shenzhen, China.



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