IPC Releases PCB Industry Results for the Month of November 2018

Press Release Summary:

IPC’s North American Printed Circuit Board (PCB) Statistical Program for November shows a decrease in year-over-year sales and order growth. The book-to-bill ratio declined to 1.01. According to the findings, the total shipments of North American PCBs in November were decreased by 3.0 percent when compared with November 2017. The PCB bookings in November were down 12.5 percent year-over-year and year-to-date order growth was 6.6 percent above same period previous year. The bookings were down to 16.6 percent when compared with last month.


Original Press Release:

North American PCB Sales and Orders Decreased in November

IPC Releases PCB Industry Results for November 2018

BANNOCKBURN, Ill., USA, December 21, 2018 IPC — Association Connecting Electronics Industries® announced today the November 2018 findings from its North American Printed Circuit Board (PCB) Statistical Program. Year-over-year sales and order growth turned negative in November, and the book-to-bill ratio declined to 1.01.

Total North American PCB shipments in November 2018 were down 3.0 percent compared to the same month last year. This year to date, shipments are 8.6 percent above the same period last year. Compared to the preceding month, November shipments decreased 9.9 percent.

PCB bookings in November were down 12.5 percent year-over-year. Year-to-date order growth was 6.6 percent above the same period last year. Bookings in November were down 16.6 percent from the previous month.

“North American PCB industry sales growth in November fell into negative territory for the first time in 16 months, and orders also decreased sharply compared to the same month last year,” said Sharon Starr, IPC’s director of market research. “The decrease in orders brought the PCB book-to-bill ratio down to its lowest level in almost two years. It is still in positive territory, but just barely. The 22-month run of positive ratios may be nearing its end, but it still offers an indication of potential sales growth for a few more months at least.”

Detailed Data Available

The next edition of IPC’s North American PCB Market Report, containing detailed fourth-quarter 2018 data from IPC’s PCB Statistical Program, will be available in February 2019. The quarterly report presents detailed findings on rigid PCB and flexible circuit sales and orders, including separate rigid and flex book-to-bill ratios, growth trends by product types and company size tiers, demand for prototypes, sales growth to military and medical markets, and other timely data. This report is available free to current participants in IPC’s PCB Statistical Program and by subscription to others. PCB companies that are IPC members doing business in North America are invited to contact marketresearch@ipc.org for information about participating. More information about this report can be found at www.ipc.org/market-research-reports.

Interpreting the Data

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 three to twelve months. A ratio of less than 1.00 indicates the reverse.

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 reflect seasonal effects and short-term volatility. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month might not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in both bookings and shipments to understand what is driving changes in the book-to-bill ratio.

IPC’s monthly PCB industry statistics are based on data provided by a representative sample of both rigid PCB and flexible circuit manufacturers selling in the USA and Canada. IPC publishes the PCB book-to-bill ratio at the end of each month. Statistics for the current month are normally available in the last week of the following month.

About IPC

IPC (www.IPC.org) is a global industry association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 4,900-member company sites 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 $2 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Washington, D.C.; Atlanta, Ga.; Stockholm, Sweden; Brussels, Belgium; Moscow, Russia; Bangalore and New Delhi, India; Bangkok, Thailand; and Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou and Beijing, China.

Contact for Media:

Sharon Starr, IPC Director of Market Research

+1 847-597-2817

SharonStarr@ipc.org

Contact for Financial Analysts:

Piyamart Holmgren, IPC Market Research Coordinator

+1 847-597-2868

PiyamartHolmgren@ipc.org

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