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N.A. PCB Book-to-Bill Ratio Reaches Five-year High in August
October 1, 2015 | IPCEstimated reading time: 2 minutes
![](https://iconnect007.com/application/files/7616/3116/0948/IPC_Logo-200.jpg)
IPC — Association Connecting Electronics Industries® announced today the August findings from its monthly North American Printed Circuit Board (PCB) Statistical Program. Year-over-year sales and order growth continued in August and the book-to-bill ratio climbed to 1.13, its highest level in more than five years.
Total North American PCB shipments increased 1.5 percent in August 2015 compared to August 2014. Year-to-date shipment growth stood at -0.1, reflecting the negative sales growth rates seen earlier this year. Compared to the previous month, PCB shipments were up 3.6 percent.
PCB bookings grew 24.1 percent compared to August 2014, increasing year-to-date order growth to 6.2 percent. Orders were up 11.3 percent in August compared to the previous month.
“Growth in North American PCB sales and orders continued in August and orders were especially strong,” said Sharon Starr, IPC’s director of market research. “The book-to-bill ratio reached its highest level since May 2010,” she added, “which is a strong indicator of positive sales growth in the fourth quarter of this year and into next year.”
Detailed Data Available
The next edition of IPC’s North American PCB Market Report, containing detailed August data from IPC’s PCB Statistical Program, will be available within the next week. The monthly report presents detailed findings on rigid PCB and flexible circuit sales and orders, including separate rigid and flex book-to-bill ratios, military and medical market growth, demand for prototypes, and other timely data. This report is available free to current participants in IPC’s PCB Statistical Program and by subscription to others. 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 six 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 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 3,700 member companies 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; Moscow, Russia; Bangalore and New Delhi, India; Bangkok, Thailand; and Qingdao, Shanghai, Shenzhen, Chengdu, Suzhou and Beijing, China.
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