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IPC August PCB Book-to-Bill Ratios Steady at Parity
September 25, 2009 |Estimated reading time: 2 minutes
BANNOCKBURN, IL — IPC — Association Connecting Electronics Industries announced the August findings from its monthly North American Printed Circuit Board (PCB) Statistical Program. Rigid PCBs remained above parity at 1.09, holding the combined rigid and flex PCB status at 1.07. “It’s slow going, but we’re seeing more signs of recovery in the North American PCB industry,” said IPC president Denny McGuirk. “Rigid PCB bookings are strengthening and that is keeping the book-to-bill ratio well above parity. It has been positive now for four consecutive months, which suggests that we should start to see the impact in sales growth this fall.”
Rigid PCB shipments declined 27.4% and bookings were down 13.0% in August 2009 from August 2008. Year to date, rigid PCB shipments were down 28.7% and bookings fell by 26.9%. Compared to the previous month, rigid PCB shipments grew by 4.8% and rigid bookings increased 12.2%. Rigid PCBs represent an estimated 91% of the current PCB industry in North America, according to IPC’s World PCB Production and Laminate Market Report. The book-to-bill ratio for the North American rigid PCB industry in August 2009 remained above parity at 1.09.
Flexible circuit shipments in August 2009 went down 13.7% and bookings increased 7.5% compared to August 2008. Year to date, flexible circuit shipments were down 2.7% and bookings were down 7.3%. Compared to the previous month, flexible circuit shipments went up 2.1% and flex bookings increased 26.5%. In August, the flexible circuit manufacturers in IPC’s survey sample indicated that bare circuits accounted for approximately 70% of their shipment value reported for the month. The North American flexible circuit book-to-bill ratio in August 2009 fell back to 0.92.
For rigid PCBs and flexible circuits combined, industry shipments in August 2009 decreased 26.5% from August 2008 and orders booked decreased 11.7% from August 2008. Year to date, combined industry shipments were down 27.0% and bookings were down 25.7%. Compared to the previous month, combined industry shipments for August 2009 increased 4.5% and bookings went up 13.1%. The combined (rigid and flex) industry book-to-bill ratio in August 2009 held steady at 1.07.
In August 2009, 87% of total PCB shipments reported were domestically produced. Domestic production accounted for 88% of rigid PCB and 82% 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 may change slightly in January, but are kept constant through the calendar year.
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 six months. 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.
For more information, visit www.IPC.org.
2009 IPC Book-to-Bill Reports:IPC's July Book-to-bill Stays Just Above Parity 2009 PCB Orders Down 30% Year-to-Date, June Book-to-Bill PositiveMay PCB Orders Outpace ShipmentsApril PCB Book-to-Bill Shows Glimpse of RecoveryQ'02 Facing Soft Market; March PCB Book-to-Bill ReleasedRigid PCB Book-to-Bill Remains Low in February, Flex Moves UpJanuary PCB Book-to-Bill Drops to 0.89