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North American EMS Industry Up 14.3% in April
May 26, 2023 | IPCEstimated reading time: 1 minute
IPC announced the April 2023 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.21.
Total North American EMS shipments in April 2023 were up 14.3 percent compared to the same month last year. Compared to the preceding month, April shipments increased 5.5 percent.
EMS bookings in April decreased 6.1 percent year-over-year and decreased 1.2 percent from the previous month.
“EMS orders continue to trend downward,” said Shawn DuBravac, IPC’s chief economist. “April's book-to-bill is the weakest recorded since the start of 2021.”
Detailed Data Available
Companies that participate in IPC’s North American EMS Statistical Program have access to detailed findings on EMS sales growth by type of production and company size tier, order growth and backlogs by company size tier, vertical market growth, the EMS book-to-bill ratio, 3-month and 12-month sales outlooks, and other timely data.
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 EMS industry statistics are based on data provided by a representative sample of assembly equipment manufacturers selling in the USA and Canada. IPC publishes the EMS book-to-bill ratio by the end of each month.
Suggested Items
The IPC Hall of Fame and Its Namesake
10/23/2024 | Dan Feinberg, I-Connect007IPC has been advancing our industry since the organization was founded more than 60 years ago, but it could not have been done without the volunteer efforts of so many members. Each year, some of those members are recognized for their significant contributions through awards such as the Rising Star Award, the Dieter Bergman Fellowship Award, the President's Award, and the Corporate Recognition Award.
Master Market Researcher: Dieter Weiss's Data Research Informs European Manufacturing
10/21/2024 | Sanjay Huprikar, IPCDieter Weiss, Weiss Engineer/in4ma, has worked in the electronics industry in Germany, the United States, and the Republic of Ireland for 46 years. After a successful entrepreneurial career, he decided to give something back to the industry and started market research of the European EMS industry under the brand in4ma.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
10/18/2024 | Nolan Johnson, SMT007 MagazineOccasionally, I’ll intentionally select items for this list that follow a theme. Sometimes, as they did this week, themes assert themselves. The component supply chain and sourcing seem to dominate our coverage this week. We’ve got an update from IPC Government Relations, an interview with counterfeiting watchdog ERAI, the 10 global sourcing rules, a course on AI and machine learning in the EMS sector, and warehouse management.
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The Government Circuit: Support for Defense Spending Takes Top Priority
10/15/2024 | Chris Mitchell -- Column: The Government CircuitFor those of us living in the world of politics and policy, the final few weeks before a major election are a little nerve-wracking. Who is going to win? How might the candidates’ campaign promises affect our industry and our strategies over the next few years? One thing I do know: No matter who wins the White House and control of Congress on Nov. 5, IPC will continue working with members of both major parties to advance policies that boost innovation, investment, and growth and ensure the electronics manufacturing industry’s long-term success. We must.