Five key themes are combining to define the current economic environment. These include supply chain constraints, manufacturing optimism, inflationary pressures, a tight labor market and the rising risk of a COVID resurgence.  Many industries continue to be plagued by supply chain disruptions, and the electronics industry is no exception. While pressure from these disruptions will improve in the coming months, we believe supply chain disruptions will continue to reverberate through the economy, and the electronics industry, well into next year.

In this month’s economic outlook report from IPC, you will find U.S. and European data on economic growth, employment, consumer sentiment, manufacturers’ sentiment (PMI), manufacturing capacity utilization and end markets for electronics.

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IPC announced today the June 2021 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.48.

Total North American EMS shipments in June 2021 were up 14.3 percent compared to the same month last year. Compared to the preceding month, June shipments grew 31.3 percent.

EMS bookings in June rose 61.3 percent year-over-year and 43.8 percent from the previous month.

“Demand for domestic electronics production remain at historic levels. Despite record orders in recent months, monthly shipments have been declining because of supply constraints and parts availability,” said Shawn DuBravac, IPC’s chief economist. “For the first month in several months, shipments rose in June, suggesting some shortages are starting to abate. But the market remains in disequilibrium -- EMS orders are roughly 15 percent above 2019 levels but shipments are 13 percent lower compared with the same time period.”

View chart in pdf format

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.

IPC announced today the June 2021 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.15.

Total North American PCB shipments in June 2021 were up 6.3 percent compared to the same month last year. Compared to the preceding month, June shipments grew 17.3 percent.

PCB bookings in June rose 19.4 percent year-over-year. Bookings in June increased 28.9 percent from the previous month.

“We saw strong PCB orders in June, outstripping any month since early 2006. The electronics supply remains constrained and companies continue to look for any available capacity,” said Shawn DuBravac, IPC’s chief economist. “Shipments also picked up strongly during the month, suggesting some disruptions are starting to improve and companies are increasingly able to fulfill incoming orders.”

View graphs in pdf format

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.