IPC releases PCB industry results for May 2009.July 9, 2009 -
According to IPC's North American PCB Statistical Program, rigid PCB shipments were down 34.2% and bookings were down 25.7% in May 2009 from May 2008. Book-to-bill ratio continued to climb and reached 1.03. Flexible circuit shipments in May 2009 were down 3.0% and bookings were down 12.9% compared to May 2008, while book-to-bill ratio inched up to 0.96. For rigid PCBs and flexible circuits combined, industry shipments decreased 32.2% from May 2008 and orders booked decreased 24.8%.
IPC Releases PCB Industry Results for May 2009
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IPC-Association Connecting Electronics Industries
3000 Lakeside Drive
Bannockburn, IL, 60015
Press release date: June 25, 2009
BANNOCKBURN, Ill., USA, June 25, 2009 - IPC - Association Connecting Electronics Industries® announced today the May findings from its monthly North American Printed Circuit Board (PCB) Statistical Program.
PCB Industry Growth Rates and Book-to-Bill Ratios Announced
Rigid PCB shipments were down 34.2 percent and bookings were down 25.7 percent in May 2009 from May 2008. Year to date, rigid PCB shipments were down 29.0 percent and bookings were down 32.2 percent. Compared to the previous month, rigid PCB shipments grew 3.6 percent and rigid bookings decreased 1.1 percent. The book-to-bill ratio for the North American rigid PCB industry in May 2009 continued to climb and reached 1.03.
Flexible circuit shipments in May 2009 are down 3.0 percent and bookings are down 12.9 percent compared to May 2008. Year to date, flexible circuit shipments are up 2.5 percent and bookings are down 7.1 percent. Compared to the previous month, flexible circuit shipments declined 10.4 percent and flex bookings are down 11.8 percent. The North American flexible circuit book-to-bill ratio in May 2009 inched up to 0.96.
For rigid PCBs and flexible circuits combined, industry shipments in May 2009 decreased 32.2 percent from May 2008 and orders booked decreased 24.8 percent from May 2008. Year to date, combined industry shipments are down 26.9 percent and bookings are down 30.7 percent. Compared to the previous month, combined industry shipments for May 2009 are up 2.1 percent and bookings are down 2.1 percent. The combined (rigid and flex) industry book-to-bill ratio in May 2009 climbed to 1.02.
"After 12 consecutive months in negative territory, the book-to-bill ratio has finally climbed above 1.0 and that is good news for the industry," said IPC President Denny McGuirk. "It is a good indicator of sales growth over the next few months. Sales growth is already starting to turn the corner," he added. "Even though year-over-year sales growth is still negative, growth rates in the rigid PCB segment improved slightly over the previous month."
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 three months.
Book-to-bill ratios and growth rates for rigid PCBs and flexible circuits combined are heavily affected by the rigid PCB segment. Rigid PCBs represent an estimated 91 percent of the current PCB industry in North America, according to IPC's World PCB Production and Laminate Market Report.
The Role of Domestic Production
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 May 2009, 88 percent of total PCB shipments reported were domestically produced.
Domestic production accounted for 88 percent of rigid PCB and 83 percent of flexible circuit shipments in May 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.
Bare Circuits versus Assembly
Flexible circuit sales typically include value-added services such as assembly, in addition to the bare flex circuits. In May, the flexible circuit manufacturers in IPC's survey sample indicated that bare circuits accounted for approximately 81 percent of their shipment value reported for the month. Assembly and other services make up a large and growing segment of flexible circuit producers' businesses. This figure is also sensitive to changes in the survey sample, which may occur at the beginning of each calendar year.
Interpreting the Data
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. IPC publishes the PCB Book-to-Bill Ratio and the PCB Statistical Program Report each month. Statistics for the previous month are not available until the last week of the following month.
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.