Industry Continues to Face High Costs; Data Suggests Mixed Cost Pressures

According to IPC’s November Sentiment of the Global Electronics Manufacturing Supply Chain report, 80% of electronics manufacturers are experiencing rising material costs, while 77% indicate that labor costs are on the rise. At the same time, ease of recruitment, profit margins, and inventory from suppliers are presently declining.

“Over the next six months, manufacturers expect to see increases in both labor and material costs, although somewhat to a lesser extent,” said Shawn DuBravac, IPC chief economist. “While supplier inventory is expected to improve, ease of recruiting and finding skilled talent and profit margins are likely to remain challenging.”

Despite murky global manufacturing sentiment, the manufacturing sector continues to hold up well, according to IPC’s November Economic Outlook report. The slowdown has brought demand and production back into balance and enabled many manufacturers to focus on backlogs.

“Though we have seen some growth, we continue to remain somewhat cautious about the economic outlook,” added DuBravac. “Consumers continue to shift away from purchasing durable goods and return to services, and this trend is likely to continue.”

Additional data from the November economic outlook report shows that there continues to be significant economic uncertainty and this will continue to exert downward pressure on economic activity of both consumers and businesses. The ongoing slowdown will continue in the coming quarters. “We are looking closely at any change in the rate of that slowdown,” DuBravac added.    

View the full reports: 

WHMA Announces Call for Nominations for Recognition Awards

The Wiring Harness Manufacturer's Association (WHMA) is accepting nominations for three recognition awards — Hall of Builders, Hall of Fame and Volunteer Excellence. The Hall of Fame and Volunteer Excellence awards will be presented at the WHMA 30th Annual Wire Harness Conference in February and the Hall of Builders award will be presented at the Electrical Wire Processing Technology Expo (EWPTE) in May. Nominations require a candidate’s first and last name, company name and reason for nomination.

The WHMA Hall of Builders award honors individuals from WHMA-member companies who have made significant contributions toward advancing the cable and wire harness industry. Hall of Builders inductees are industry veterans, leaders and mentors who are retiring from active service/employment, but whose legacies live on in wire and cable industry today.

The WHMA Hall of Fame is bestowed upon an individual in recognition of extraordinary contributions with broad significance to the cable and wire harness industry and distinguished service to WHMA. The nominee must support the advancement of the industry, consistent with the goals and mission of WHMA. This is the highest level of recognition WHMA can give to a member and is based on exceptional merit over the long term.

The WHMA Volunteer Excellence Award honors individuals from WHMA-member companies who have demonstrated ongoing leadership in WHMA activities and have contributed significant time and talent to the association and the cable and wire harness industry

Submit your nominations online by December 19, 2022, 5:00 PM at https://whma.org/recognition. For more information/questions on nomination requirements, email contact.us@whma.org

      

North American PCB Industry Sales Up 9.0 Percent in October

IPC Releases PCB Industry Results for October 2022

IPC announced today the October 2022 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.07.

Total North American PCB shipments in October 2022 were up 9.0 percent compared to the same month last year. Compared to the preceding month, October shipments fell 13.3 percent.

PCB year-to-date bookings in October were down 4.5 percent compared to last year. October bookings were down 22.5 percent compared to the same month last year.

“Both order and shipment data in October were relatively weak but these data come on the heels of a strong September which has left the book-to-bill in positive territory,” said Shawn DuBravac, IPC’s chief economist. “Strong bookings in September suggest shipments should remain solid in the month ahead.”

October 2022 PCB book to bill graph 1
October 2022 PCB book to bill graph 2

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.

North American EMS Industry Up 14.9 Percent in October

IPC Releases EMS Industry Results for October 2022

IPC announced today the October 2022 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.29.

Total North American EMS shipments in October 2022 were up 14.9 percent compared to the same month last year. Compared to the preceding month, October shipments decreased 2 percent.

EMS bookings in October increased 7.8 percent year-over-year and decreased 1.5 percent from the previous month.

“EMS orders and shipments remained above trend in October, despite a small reversal relative to last month,” said Shawn DuBravac, IPC’s chief economist. “Supply chain constraints have eased but shipment growth remains slightly constrained as some ongoing supply chain issues persist.”

October 2022 EMS book to bill graph

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.

Taiwan Union Technology Corporation First Company to Earn an IPC-4103 Qualified Products Listing

IPC's Validation Services Program has awarded an IPC-4103 Qualified Products Listing (QPL) to Taiwan Union Technology Corporation (TUC), an electronics materials manufacturing company headquartered in Zhubei, Hsinchu County, Taiwan. TUC provides mass lamination services, copper-clad laminates, and prepregs to the global electronics industry. To earn this QPL, TUC successfully qualified their laminate product, TU-1300N, to IPC-4103B, Specification for Base Materials for High Speed/High Frequency Applications.     

 TUC was not only the first in achieving a QPL to IPC-4103, but also earned the first QPL to IPC-4101, Specification for Base. Materials for Rigid and. Multilayer Printed Boards, more than five years ago.

TUC met or exceeded the IPCs Validation Services QPL requirements for producing materials used by printed circuit board manufacturers in the electronics industry. Thus, the company is now listed as an IPC trusted source capable of manufacturing in accordance with industry best practices. TUC and other trusted suppliers can be found on IPC's QML/QPL (Qualified Product Listing) database at www.ipcvalidation.org.

“Being a trusted supplier to IPC-4103 means that TUC has met the highest standards for production and quality in this leading-edge market,” said George Hsin, chief strategy officer of Taiwan Union Technology Corporation. “PWB suppliers made this QPL their first screen when selecting base materials for IPC-4101 and now we are a trusted supplier for IPC-4103 as well.” IPC's Validations Services QPL/QML Program was developed to promote supply chain verification. It also provides auditing and certification of electronics companies' products and identifies processes which conform to IPC standards.

“TUC has differentiated itself from the competition by becoming part of IPC's global network of trusted industry sources," said Randy Cherry, IPC director of Validation Services. "We are pleased to recognize TUC as the first world member of trusted QPL suppliers to meet IPC-4103.”

For more information about IPC's Validation Services QPL/QML Program, visit www.ipcvalidation.org or contact Randy Cherry at RandyCherry@ipc.org or +1 847-597-2806.         

WHMA/IPC Issues Call for Participation for Electrical Wire Processing Technology Expo 2023

Deadline for proposals: December 5, 2022

WHMA/IPC invites engineers, researchers, academics, technical experts, and industry leaders to submit proposals for the Electrical Wire Processing Technology Expo (EWPTE), to be held May 16-18, 2023, at the Wisconsin Center in Milwaukee, Wis.

Expert technical conference presentations and professional development courses are being sought in the following topic areas:

  • Case Studies on A-620 Success
  • Quality Requirements
  • ESD Impacts on Harness
  • ESD Transmission through Harnesses
  • Hi Frequency Cabling
  • X-ray Inspection Techniques
  • Crimping Challenges/Dos and Don’ts
  • Crimp Cross Sectioning
  • Wire Harness Troubleshooting
  • Reliability Issues and Failure Analysis
  • Wiring Harness Education and Training
  • Connector Advances
  • Tooling
  • Process Equipment/Productions
  • Calibration
  • Ultrasonics Splicing and Terminating
  • Harness Design Drawings Engineering
  • Overmolding
  • Testing – Electrical/Environmental/
    Mechanical
  • Electric Vehicles (EV)/Electric Mobility
  • Cleanliness and FOD
  • Wiring Harness Rework

 Proposals must include an approximate 300-word abstract/summary of the presentation and description of what the audience will learn, and who will benefit from attending the presentation. Technical conference paper abstracts and course proposals are due December 5, 2022. For more information or to submit a proposal, visit https://app.oxfordabstracts.com/stages/4443/submitter. For questions regarding the technical conference at EWPTE, contact Julia Gumminger, IPC/WHMA professional development and events manager, at JuliaGumminger@ipc.org.

For additional information on attending or exhibiting, visit www.electricalwireshow.com, or contact Alicia Balonek, IPC/WHMA senior director of trade shows and events at AliciaBalonek@ipc.org.

Registration Open for the 2023 WHMA 30th Annual Wire Harness Conference

Registration is now open for the 2023 WHMA 30th Annual Wire Harness Conference, the industry’s only annual global leadership conference for the wire harness manufacturing industry. Geared to wire harness manufacturers, their suppliers and customers, the event will take place in person, February 14-16, 2023, in Albuquerque, New Mexico at the Sandia Resort and Casino.

In 2023, several noted industry experts and thought leaders will take to the keynote stage to deliver insight on the industry, economy, hiring practices, achieving work/life balance, effective leadership strategies, organizational success, and more. The 2023 keynote/featured speaker lineup includes:

  • Dan Thurmon, peak performance coach and work/life balance expert. Thurmon will present the conference opening keynote, “Off Balance on Purpose: Improving Work-Life Alignment” on Wednesday, February 15, 9:00 am to 10:00 am MST.
  • Kit Welchlin, professional consultant. Welchlin will present “Effective Leadership: It’s not Just Positional; It’s Personal - Become the Leader People Want to Follow” on Wednesday February 15, 1:30 pm to 2:30 pm MST.
  • Christopher D. Lee, Ph.D., SPHR, author and managing director, Diversified Search Group. Dr. Lee will present “How to Leverage Human Potential for Organizational Success” on Thursday, February 16, 8:45 am to 9:45 am MST.
  • Shawn DuBravac, Ph.D., CFA, WHMA/IPC chief economist. Dr. DuBravac will discuss WHMA’s growing industry intelligence program and provide insights on issues facing the global electronics industry, including supply chain resiliency/uncertainty, trade wars, skilled workforce shortage, and the expanding role of electronics in the global economy as well as a detailed economic report and outlook for WHMA members on Thursday, February 16, 9:45 am to 10:45 am MST.
  • Pamela Barnum, trust strategist and body language expert. Barnum will present “Major, Minor, and Micro Nonverbals – The New Body Language Skills You Need to Win” on Thursday, February 16, 1:30 pm to 2:30 pm MST.

In addition to two days of inspiring keynotes and features speakers, the conference will offer a technical education workshop on IPC’s Wire Harness for Operators (WHO) course, part of a broad IPC workforce development initiative designed to meet the industry’s critical onboarding and upskilling needs effectively and efficiently. Attendees will learn more about how this course can help their organization reduce time to efficiency and costly rework while increasing productivity and retention, all at a fraction of customary investments in time and cost. The workshop will be offered on Tuesday, February 14, from 3:00 pm to 5:00 pm MST.

“From keynotes, featured presentations, technical education workshops and ‘best-practice’ roundtable sessions to an exhibition with industry leading suppliers showcasing their cutting-edge products and services and peer-to-peer networking, the 2023 WHMA wire harness conference will offer leaders in the global cable and wire harness industry opportunities to learn, grow and foster relationships,” said Joe DeMan, WHMA Board Chair. “Both the association and conference are celebrating 30 years of connecting the wire harness industry and there is much to recognize and celebrate!”  

For more information on the conference including schedule, exhibition, speaker profiles, sponsorship opportunities, or to register for event, visit https://annualconference.whma.org.