North American PCB Industry Sales up 4.5 Percent in December

IPC Releases PCB Industry Results for December 2020

IPC announced today the December 2020 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.05.

Total North American PCB shipments in December 2020 were up 4.5 percent compared to the same month last year. Compared to the preceding month, December shipments rose 9.8 percent.

PCB bookings in December rose 9.2 percent year-over-year and increased 9.1 percent from the previous month.

“PCB orders and shipments ended 2020 on a positive note. Order flow outpaced shipments for the second consecutive month. For the year, orders were up 4.5 percent while shipments increased 2.4 percent,” said Shawn DuBravac, IPC’s chief economist. “Recent reports of spot semiconductor shortages might curtail PCB orders in the near-term, but demand continues to look solid.”

December 2020 book to bill ratio chart 1
December 2020 book to bill ratio chart 2

 

View charts in pdf

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 Applauds U.S. Defense Department for Establishing New Defense Electronics Consortium

IPC, the global association of electronics manufacturers, is applauding the U.S. Department of Defense (DoD) for establishing a new Defense Electronics Consortium (DEC).

The DoD recently awarded $3.9 million to the U.S. Partnership for Assured Electronics (USPAE) to establish and manage the consortium, through which industry and academia will work with DoD to solve the government’s electronics-related challenges. USPAE is an independent, nonprofit  subsidiary of IPC.

IPC President and CEO John Mitchell said, “As a global organization, IPC believes all nations should take steps to ensure trusted supply chains for electronics related to essential government functions such as national security.

“Electronic systems and devices are at the heart of today’s defense and security systems, and DoD is wise to create a mechanism for having visibility into – and relationships across – the entire electronics manufacturing ecosystem,” Mitchell added. 

The USPAE’s affiliation with IPC provides connections to about 2,000 U.S. member companies across all parts of the supply chain, as well as relevant research and academic institutions. IPC, in collaboration with U.S. electronics manufacturers, created USPAE to support industry partnership with the U.S. government. Due to the sensitive nature of some of the work being done through USPAE, appropriate firewalls have been put in place between the organizations.  

The DEC’s first project will be an effort to accelerate the adoption of lead-free electronics in defense systems. Industry experts believe a five-year, $40 million investment in a public-private program would yield more than $100 million in U.S. defense savings per year and improve military readiness and overall innovation. The Congress has provided $15 million for such efforts since FY 2020.

IPC Welcomes President Biden’s “Buy American” Executive Order

IPC welcomes the “Buy American” Executive Order signed today by U.S. President Joe Biden. The COVID-19 pandemic has illustrated starkly the importance of building robust domestic manufacturing capabilities that the United States lacks today.   

According to a White House statement, the Executive Order will:

  • “Close current loopholes” in domestic content and purchasing requirements.
  • Increase transparency and oversight of potential waivers to “crack down on unnecessary waivers.”
  • Reinvigorate the U.S. Manufacturing Extension Partnership and other federal mechanisms to better connect small- and medium-sized enterprises to contracting and subcontracting opportunities.
  • Appoint a new senior leader in the Executive Office of the President in charge of the government’s Made-in-America policy initiative.

IPC President and CEO John Mitchell said, “The Executive Order is a meaningful milestone on the road to our manufacturing future. IPC encourages President Biden to complement the Executive Order with an ambitious, interagency U.S. manufacturing strategy that builds capabilities domestically and strengthens ties to U.S. allies and trading partners.    

“IPC believes in both free, fair, rules-based international commerce, and in the right of all nations to ensure access to trusted and resilient supply chains for essential goods and services. In signing this Executive Order, President Biden moves closer to achieving the latter, even as a he works with allies and trading partners to promote the former. 

“IPC looks forward to reviewing the Executive Order more closely and engaging with the Director for Made-in-America to provide our input on implementation. IPC also encourages President Biden to continue to take swift action during this pandemic to provide immediate, short-term support to manufacturers and workers in a manner that also provides long-term benefits and builds resilient manufacturing networks in the U.S. and worldwide.”

A Materials Engineer Takes IPC's PCB Design I Course

Jan 25, 2021

In the last couple of years, IPC has heavily invested in providing continuing education for electronics engineering and manufacturing professionals through the IPC EDGE online learning platform. IPC EDGE synthesizes a live virtual classroom with comprehensive, hand-on projects and independent study to create a professional development experience that is indistinguishable from some of college courses that I took only a few years ago. 

And indeed, electing to take courses on IPC EDGE went above and beyond an ‘employee audit’ of the program: the PCB Design 1 course filled competency gaps that I needed to be a better standards development manager. Upon starting at IPC, I already had a firm grasp and of the physics of electronics, but my understanding was largely focused on IC-level circuits and their manufacture. As the manager of board design standards at IPC, I wanted to enhance my knowledge of board design so that I could better communicate with my committee members. Immediately after being given the opportunity, I enrolled in PCB Design I, the first in a series of board design courses intended to bolster any professional’s theoretical and practical knowledge of schematic capture and design documentation. 

By the second week of the course, we were building schematic and PCB libraries in the design authoring tool, with much of the lecture devoted to discussion of the various specifications that must be followed in order to build a compliant library. (I remember spending a bit of time working through the creation of surface-mount footprints per the IPC-7531 spec, which was exciting considering that I have sat in on many of those development meetings while training at IPC!) We then spent the middle of the course implementing these libraries in the design tool by creating the schematic pages, followed by studying the application of net classes and design rules to those pages. Towards the end of the course, we completed the study of schematics by generating documentation packages and finalizing the course-long project of preparing the schematics for a hypothetical FPGA unit. 

I was impressed by how flexible the instructor was and how willing he was to work with me and keep me up to speed. (I actually had to start the class one week late, and I was caught up in no time!) On top of that, while the course did have four hours’ worth of lectures each week, the assignments are designed to be self-paced: they are cumulative across the six weeks and you can work on them as your schedule allows throughout that time. As the course has no prerequisites, other than a basic understanding of electronics as it relates to printed boards, it is accessible for all skill levels and prior experiences. The class roster was made up of board designers, electrical engineers, production line managers, and engineering managers; and no question was considered ‘dumb’ – we all learned from one another’s experience. 

I highly recommend the PCB Design I course to anyone who wants to improve their understanding of this crucial phase of the board design process. And again, I do not just say this as an employee of IPC: I am usually very critical of professional development opportunities, but when comparing this course to other courses that I have taken as part of previous work positions, the PCB Design I course really does outshine the rest by orders of magnitude. 

Heads Up: Potential OSHA Emergency Standard on COVID-19

Jan 22, 2021
| By Kelly Scanlon

U.S. President Joe Biden on January 21 issued an Executive Order (EO) that aims to improve worker health and safety protections during the COVID-19 pandemic. The EO statues that the Occupational Safety and Health Administration (OSHA) is tasked to, among other things: issue revised guidance to employers on workplace safety within two weeks; consider whether any emergency temporary standards (ETS) are necessary and, if so, issue them by March 15; and launch a national program to focus on enforcement.  It is too early to know the specifics that will flow from the EO, but should any ETS be issued, it would take effect immediately and would be in effect until superseded by a permanent standard.

For now, companies should continue to ensure workplace protections meet local or state requirements.  

 

Green Cleaners for Electronics Manufacturing

Jan 22, 2021
| By Kelly Scanlon

IPC is excited to announce that it has committed to developing a new consensus-based industry standard, IPC-1402, Standard for Green Cleaners Used in Electronics Manufacturing. This standard will expand IPC’s existing 300-plus catalog of electronics manufacturing standards to include safer, greener practices.

IPC-1402 is intended to apply to chemical cleaners used in the manufacture of electronic assemblies, components, and materials including the direct use of chemicals on these assemblies or for the cleaning of manufacturing machines during operation and maintenance. The standard will establish a scientifically defensible set of green chemistry requirements for cleaners used in electronic manufacturing – giving electronic manufacturing companies another way to demonstrate their commitment to the protection of environmental and occupational health and safety. We welcome you to get involved with this standard’s development. 

If you are interested in volunteering to be a member of the Green Initiatives for Cleaners task group, please contact me at KellyScanlon@ipc.org.

Opportunity for Companies to Inform New Workplace Limits on Lead (Pb)

Jan 22, 2021
| By Kelly Scanlon

The European Commission’s Directorate-General for Employment, Social Affairs and Inclusion (DG EMPL) is working with a consultancy to conduct an industry survey to collect information that will allow them to analyze health, socioeconomic, and environmental impacts from new occupational exposure limits for lead (Pb) and its compounds.

Information collected, such as current exposure levels, risk management measures in place, costs associated with engineering controls, and cost-benefit data, will enable the Commission to establish practicable, protective limits. The final limits will be binding in the EU. All data and information submitted in response to the survey will be treated as confidential.

We encourage electronics manufacturing companies working with Pb to review the survey and consider contributing data and information by the deadline of February 26. Questions regarding the survey, the information being requested, or the deadline for the survey should be directed to the consultancy.

 

Electrical Wire Processing Technology Expo (EWPTE) 2021 Postponed to May 10-12, 2022

The 2021 Electrical Wire Processing Expo (EWPTE) originally scheduled at the Wisconsin Center in Milwaukee, Wis. for May 11-13, 2021 has been postponed to May 10-12, 2022. As show managers of the 2021 EWPTE, WHMA/IPC and Wisconsin Center District staff met with the newly formed EWPTE exhibitor advisory board. The advisory board comprised of representatives from the following companies: Amphenol CTI, Anixter, Artos, Brady Corporation, Cesar-Scott, DIT-MCO, Dynalab Test Systems, Hellermann Tyton, IEWC, Komax, Molex, Schleuniger Inc., Southwire Company, TE Connectivity and Telsonic unanimously made the critical decision to postpone the event due to ongoing concerns with COVID-19.

“Because of the extensive face-to-face networking and hands-on educational opportunities that EWPTE offers, the advisory board felt it was just not feasible to transition the event to a virtual one,” said David Bergman, WHMA executive director. “The past few years have drawn an expanded roster of exhibitors and visitors and the 2019 event saw close to 3,000 attendees from 40 states and 25 countries and nearly 200 exhibiting companies. We want to provide the electrical wire harness, wire and cable processing industries the cutting-edge and comprehensive in-person event they have come to expect the last 20 years in a safe environment.”

“My staff and I support the unanimous recommendation from the advisory board to postpone the show to 2022,” said Wisconsin Center District President and CEO Marty Brooks. “National and international participation for both exhibitors and attendees is what makes this show so comprehensive, so holding the event before international travel is reliable and safe would short sighted. I can’t wait to welcome everyone back to the Wisconsin Center in 2022.”

Information regarding the 2022 event will be available soon; visit www.electricalwireshow.com.

President Biden Tees Up Dozens of Executive Actions

Jan 20, 2021

U.S. President Joe Biden plans to sign an unprecedented number of executive actions in the days ahead. Many of these actions will freeze or reverse the policies of his predecessor, including the U.S. rejoining the World Health Organization and the Paris Agreement on Climate Change. Others constitute the first steps in implementing the agenda he laid out in his campaign.

Notably, the President tomorrow plans to direct a review of the COVID-related supply chain and lay the groundwork for invoking the Defense Production Act. On Monday, he will direct agencies to strengthen federal “Buy American” requirements.

All of the planned executive actions can be reviewed here, and we will keep you posted on developments of interest to our industry. Visit whitehouse.gov any time for the latest presidential statements, documents, and more.

TTM Technologies, Inc. Earns IPC-1791, Trusted Electronic Designer, Fabricator and Assembler Requirements Qualified Manufacturers Listing (QML)

IPC's Validation Services Program has awarded an IPC-1791, Trusted Electronic Designer, Fabricator and Assembler Requirements Qualified Manufacturers Listing (QML) to TTM Technologies, Inc.'s facilities in Sterling, Va. and Stafford Springs, Conn. Following initial audits by IPC, the Sterling, Va. facility passed stringent fabricator requirements, while the Stafford Springs, Conn. facility passed designer and assembler requirements, earning both facilities a spot-on IPC’s global network of rigorously vetted, trusted sources.

Requirements for certification and QML listing to IPC-1791 includes product and quality system, supply chain risk management system (SCRM), security system including compliance to NIST SP 800-171, Export Control Laws (ITAR and EAR), and a chain of custody system (ChoC) review.

Catherine Gridley, executive vice president and president of TTM’s aerospace & defense business, said, "TTM is proud to be part of the IPC-1791 Trusted Supplier network. TTM is now certified to offer our customers a trusted solution for design services, printed circuit fabrication, and specialty assembly. This initiative is an important part of our continued commitment to our customers and the defense industry."

IPC's Validation Services QPL/QML Program was developed to promote supply chain verification and recognition. It also provides auditing and certification of electronics companies' products and identifies processes which conform to IPC standards.

"Different from other audit programs, IPC's Validation Services Programs uniquely provides technical and in-depth assessments of products and processes in accordance with IPC standards," said Randy Cherry, IPC director of Validation Services. "We are pleased to recognize TTM Technologies, Inc.’s Sterling, Va. and Stafford Springs, Conn. facilities on becoming members of IPC's network of trusted QML suppliers."   

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.   

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