IPC announced today the August 2023 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.00.

Total North American PCB shipments in August 2023 were up 26.4 percent compared to the same month last year. Compared to the preceding month, August shipments were down 35.7 percent.

PCB bookings in August were down 29 percent compared to the same month last year. August bookings were down 36.8 percent compared to the preceding month.

“August PCB results were weak, with both orders and shipments failing,” said Shawn DuBravac, IPC’s chief economist. “While the book-to-bill remains balanced, levels are well below the recent trend.”

Detailed Data Available

Companies that participate in IPC’s North American PCB Statistical Program have access to 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.

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 by the end of each month.

IPC announced today the August 2023 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.27.

Total North American EMS shipments in August 2023 were up 2.49 percent compared to the same month last year. Compared to the preceding month, August shipments increased 8.9 percent.

EMS bookings in August increased 13.7 percent year-over-year and increased 8.2 percent from the previous month.

“The EMS industry saw good growth in both orders and bookings this month which kept the book-to-bill in line with recent months,” said Shawn DuBravac, IPC’s chief economist.

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.

Though product demand weakened this month with Orders and Backlog Indexes slipping, overall electronics industry operations remain healthy per IPC’s September 2023 Global Sentiment of the Electronics Supply Chain Report.

“Both inventory indexes remain strong, suggesting inventory is available from suppliers and inventory is available to customers,” said Shawn DuBravac IPC chief economist. “We continue to hear of long lead times for some parts but overall inventories appear well balanced.”

Additional survey data show:

• Cost environment continues to improve: The Labor Costs Index and the Material Costs Index both fell this month. Both are near the lower part of their ranges and should continue to improve in the coming months.
•  Nearly two-thirds (63%) of electronics manufacturers are currently experiencing rising labor costs, with more half (52%) reporting rising material costs.
• The Shipments Index slipped four points this month but remains in expansionary territory. Manufacturers expect shipments to weaken further in the coming months.
• Per a special question asked about cutting hours in order to keep workers, roughly 22 percent of electronics manufacturers report they are cutting hours to keep workers even though they are facing slower demand.

For the report, IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain.

View full report.