NA PCB Industry Book-to-Bill Ratio Retreated to 1.00 for March
April 30, 2019 | IPCEstimated reading time: 2 minutes
IPC — Association Connecting Electronics Industries announced today the March 2019 findings from its North American Printed Circuit Board (PCB) Statistical Program. Year-over-year growth in March was strong for sales but slipped into negative territory for orders, while the book-to-bill ratio retreated to parity at 1.00.
Total North American PCB shipments in March 2019 were up 19.1% compared to the same month last year. Year-to-date sales growth as of March was 16.4%. Compared to the preceding month, March shipments jumped 32.9%.
PCB bookings in March decreased 0.9% year-over-year, bringing year-to-date order growth down to a positive 2.4%. Bookings in March were up 10.1% from the previous month.
“Strong sales for the North American PCB industry in March, combined with lackluster order growth, brought the book-to-bill ratio down to 1.00, its lowest level in more than two years,” said Sharon Starr, IPC’s director of market research. “Year-over-year sales growth has outpaced order growth for the past 10 months, indicating the likelihood of slowing sales growth in the coming months.”
Note: The March 2018, November 2018 and January 2019 growth rates have been revised since their original publication due to updated data from statistical program participants.
The first-quarter 2019 edition of IPC’s North American PCB Market Report,containing detailed data from IPC’s PCB Statistical Program, will be published by mid-May. 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.
Suggested Items
PCBflow Helps Designers Choose Best Manufacturer for the Job
03/28/2024 | Andy Shaughnessy, Design007 MagazineI recently spoke with a few technologists who have first-hand experience with PCBflow: Susan Kayesar, technical product manager with Siemens; Evgeny Makhline, CTO of Nistec, a CEM based in Israel; and Peter Tranitz, senior director of technology solutions and leader of the IPC Design Initiative. They explain how PCBflow functions, from the designer’s and manufacturer’s viewpoint, and how this database helps break down the wall between these stakeholders.
ASMPT to Exhibit Smart Manufacturing at IPC APEX EXPO 2024
03/27/2024 | ASMPTWith its innovative, data-driven Intelligent Factory concept and a comprehensive hardware and software portfolio around SMT production, market and innovation leader ASMPT will be a major presence at the IPC APEX EXPO 2024, the industry’s main event in California.
Mycronic to Showcase More Versatile, High-productivity Assembly Solutions at IPC APEX EXPO 2024
03/27/2024 | MycronicMycronic, the leading Sweden-based electronics assembly solutions provider, will continue to respond to growing customer demand for high-flexibility, high-productivity solutions for zero-defect PCB assembly at IPC APEX EXPO 2024 in Anaheim, CA on April 9 - 11.
TRI Launches New Advanced Packaging 3D CT AXI Solution
03/26/2024 | TRITest Research, Inc. (TRI) proudly announces the launch of the SEMI 3D CT AXI solution, TR7600F3D SII Plus, marking a paradigm shift in precision and reliability for high-reliability electronics manufacturing, such as the Advanced Packaging Industry.
Blackfox Ready for IPC APEX EXPO 2024
03/26/2024 | Andy Shaughnessy, I-Connect007Blackfox Training Institute offers IPC-certified training for a myriad of PCB assembly techniques and standard certifications. With many technologists beginning to eye retirement, this training is at a premium. I recently spoke with Jamie Noland, director of training and education for Blackfox, about the company’s latest educational efforts, and his plans for the upcoming IPC APEX EXPO, where Blackfox will be exhibiting.