Estimated reading time: 5 minutes

Facing the Future: The Evolution of the North American PCB Industry

To get a clear look at the future, we must take a glimpse at the past. The North American printed circuit board (PCB) industry has transformed dramatically over the years. Once a powerhouse of global manufacturing, it now stands at a crossroads, driven by challenges, innovation, and the relentless pace of technological change. Understanding the history, evolution, and future of the North American PCB market is essential to appreciating its role in the global electronics ecosystem.  

The North American PCB industry traces its roots to the mid-20th century when the United States was the epicenter of global electronics manufacturing. Military and aerospace applications, telecommunications, and early computing technologies drove the demand for PCB production. Companies like IBM and HP spearheaded innovation, and the region’s strong industrial base enabled rapid technological advancements.  

Throughout this golden era, North America led the world in PCB innovation and production. Proximity to research hubs, skilled labor, and robust infrastructure made it a global leader. However, as globalization gained traction in the late 20th century, North American dominance began to wane, with production shifting to regions offering lower labor and manufacturing costs.  

Several challenges have reshaped the North American PCB landscape, leading to the current state of the industry:  

• Globalization and offshoring: The outsourcing of manufacturing to countries in Asia, particularly China, led to a sharp decline in North American PCB production. Cost advantages and economies of scale in Asia made it difficult for North American manufacturers to compete.  
• Environmental regulations: Stricter environmental and safety standards in North America increased production costs, leading many companies to move operations offshore.  
• Loss of skilled workforce: As manufacturing moved overseas, the domestic talent pool for PCB fabrication and assembly dwindled, further complicating efforts to sustain the industry.  
• Economic pressures: The cyclical nature of the electronics industry, combined with financial crises, reduced capital investment in domestic PCB manufacturing.  

These challenges forced North American companies to rethink their strategies, laying the groundwork for a new era of specialization and high-tech capabilities.  

Despite the challenges, North American PCB manufacturers have adapted by focusing on niche markets and high-value applications. Industries such as aerospace, defense, medical devices, and advanced telecommunications have become the bedrock of North American PCB production.  

The shift to specialized, high-tech PCBs has been driven by the demand for:  

• Advanced materials and technologies: Manufacturers now produce boards with unique requirements, such as high-frequency substrates, flexible circuits, and HDI (high-density interconnect) technology 
• Stringent quality standards: The aerospace and medical sectors demand rigorous testing, reliability, and adherence to standards such as International Traffic in Arms Regulations (ITAR)
• Quick turnaround times: North American manufacturers have capitalized on their proximity to customers, offering rapid prototyping and small-batch production that Asian mass manufacturers cannot easily match

This transition to high-tech, low-volume manufacturing has allowed North American companies to remain competitive and relevant on the global stage.  

Two segments divide the global PCB industry: high-volume production, which Asia dominates, and high-mix, low-volume (HMLV) manufacturing, where North America has established its niche. 

HMLV manufacturing caters to industries that prioritize customization, complexity, and short lead times. Unlike consumer electronics, which require millions of identical boards, HMLV applications often involve small production runs of highly customized PCBs. This shift has allowed North American manufacturers to focus on providing solutions rather than just products. By offering design-for-manufacturing (DFM) services, collaborating closely with customers, and investing in advanced equipment, these manufacturers have positioned themselves as partners in innovation rather than mere suppliers.  

Government policies and trade regulations have had a profound impact on the North American PCB industry. In recent years, the government has increased efforts to support domestic manufacturing, including:

• Tariffs on imported PCBs: Trade tensions with China have led to tariffs on imported PCBs, prompting some companies to source domestically. However, this has also increased costs for businesses that rely on Asian supply chains
• Government incentives: Initiatives like the CHIPS and Science Act, while primarily focused on semiconductor production, have created opportunities for domestic PCB manufacturers to align themselves with the resurgence of the U.S. electronics industry 
• National security concerns: The reliance on foreign-made PCBs for critical applications, particularly in defense, has raised alarms. Governments are now emphasizing the need for secure, domestic PCB supply chains

While these policies present opportunities, they also pose challenges. Tariffs and regulations can disrupt global supply chains, and the industry must adapt to balance competitiveness with compliance. The North American PCB industry faces both challenges and opportunities. Several trends will shape its trajectory over the next decade:  

• Increased automation and digitalization: Advanced manufacturing technologies, such as artificial intelligence (AI), robotics, and the Internet of Things (IoT), will revolutionize PCB production. Companies that invest in smart factories and digital tools will gain a competitive edge 
• Reshoring and regionalization: As geopolitical tensions persist, reshoring and regional supply chain strategies will gain momentum. North America is likely to see growth in domestic PCB production, driven by national security and economic considerations
• Sustainability initiatives: Environmental concerns will lead to the adoption of greener processes and materials. Companies that prioritize sustainability will align with customer expectations and regulatory demands 
• Collaboration across the value chain: Partnerships between PCB fabricators, designers, and assemblers will be critical. Integrated solutions will help North American manufacturers differentiate themselves in a crowded market
• Expansion into emerging markets: Sectors such as electric vehicles, renewable energy, and quantum computing will drive demand for innovative PCBs. North American companies are well-positioned to capitalize on these opportunities  

Resilience and reinvention underlie the evolution of the North American PCB industry. From its early days as a global leader to its current position as a high-tech specialist, the industry has demonstrated its ability to adapt to changing times. It must continue to embrace innovation, collaborate across the value chain, and navigate a complex global landscape. By doing so, it can be a vital player in the global electronics ecosystem, delivering value through quality, reliability, and technological excellence. 

The PCB market’s trajectory reminds us that evolution is not only inevitable but essential for survival and success. The next decade promises to be transformative, and North American PCB manufacturers are well-equipped to rise to the challenge.

Prashant Patel is the founder and president of Alpha Circuit.