IPC releases PCB industry results for August 2008.
Press Release Summary:
September 30, 2008 - According to IPC's monthly North American PCB Statistical Program, rigid PCB shipments are up 2.5% and bookings are down 14.9% in August 2008 from August 2007, while book-to-bill ratio for North American rigid PCB industry moved up slightly to 0.95. Compared to August 2007, flexible circuit shipments are up 18.9% and bookings are down 24.3%. North American flexible circuit book-to-bill ratio in August 2008 fell to 0.90.
Original Press Release
IPC Releases PCB Industry Results For August 2008
Press release date: September 26, 2008
Rigid PCB shipments are up 2.5 percent and bookings are down 14.9 percent in August 2008 from August 2007. Year to date, rigid PCB shipments are up 5.3 percent and bookings are up 1.7 percent. Compared to the previous month, rigid PCB shipments increased 5.8 percent and rigid bookings increased 3.9 percent. The book-to-bill ratio for the North American rigid PCB industry in August 2008 moved up slightly to 0.95. Flexible circuit shipments in August 2008 are up 18.9 percent and bookings are down 24.3 percent compared to August 2007. Year to date, flexible circuit shipments are up 9.0 percent and bookings are down 8.7 percent. Compared to the previous month, flexible circuit shipments are down 2.2 percent and flex bookings declined 21.5 percent. The North American flexible circuit book-to-bill ratio in August 2008 fell to 0.90. For rigid PCBs and flexible circuits combined, industry shipments in August 2008 increased 3.5 percent from August 2007 and orders booked decreased 15.5 percent from August 2007. Year to date, combined industry shipments are up 5.6 percent and bookings are up 1.0 percent. Compared to the previous month, combined industry shipments for August 2008 are up 5.2 percent and bookings are up 2.0 percent. The combined (rigid and flex) industry book-to-bill ratio in July 2008 was 0.95. "Year-on-year shipment growth in August was positive, which follows normal seasonal patterns, but orders are down compared to last year," said IPC President Denny McGuirk. "This has kept the book-to-bill ratio below 1.0, although it improved slightly in August for rigid PCBs." 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 than1.00 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 90 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 August 2008, 76 percent of total PCB shipments reported were domestically produced. Domestic production accounted for 76 percent of rigid PCB and 84 percent of flexible circuit shipments in August by IPC survey participants. These numbers are significantly affected by the mix of companies in IPC's survey sample, which change slightly in January, but remain constant through the remainder of the year. Bare Circuits Versus Assembly
Flexible circuit sales typically include value-added services such as assembly, in addition to the bare flex circuits. In August, the flexible circuit manufacturers in IPC's survey sample indicated that bare circuits accounted for approximately 62 percent of their shipment value reported for the month. Assembly and other services make up a large and growing segment of flexible circuit producers' business. 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 Interconnect Manufacturing Services (IMS) Business Report each month. Statistics for the previous month are not available until the last week of the following month. 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 $1.5 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Arlington, Va.; Garden Grove, Calif.; Stockholm, Sweden; and Shanghai, China.