EMS North America Industry Report, February 2021

IPC Releases EMS Industry Results for February 2021

IPC announced today the February 2021 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 February 2021 were up 6.4 percent compared to the same month last year. Compared to the preceding month, February shipments fell 1.7 percent.

EMS bookings in February rose 21.5 percent year-over-year and increased 16.7 percent from the previous month.

According to Shawn DuBravac, IPC chief economist, “Orders increased significantly in February, suggesting some of the production declines we saw across manufacturing during the month due to severe weather will likely reverse in the coming weeks and months.”

February 2021 EMS book to bill ratio chart

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.
 

North American PCB Industry Sales Up 6.1 Percent in February

IPC Releases PCB Industry Results for February 2021

IPC announced today the February 2021 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.20.

Total North American PCB shipments in February 2021 were up 6.1 percent compared to the same month last year. Compared to the preceding month, February shipments rose 3.9 percent.

PCB bookings in February increased 6 percent year-over-year. Bookings in February increased 14.3 percent from the previous month.

"PCB orders and shipments continue to trend higher,” said Shawn DuBravac, IPC chief economist. “Orders during the month were especially strong, which carry shipments in the coming month.”

February 2021 Book to Bill Graph 1
February 2021 Book to Bill Graph 2

View charts 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.

Over Four Decades of Wire Harness Industry Observations

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WHMA Webinar Series: Over Four Decades of Wire Harness Industry Observations

In this webinar, we will hear from Industry Leader, Loren Smith of Blue Valley Capital. He has over four decades of wire harness experience. This will be a very interactive webinar. Please come prepared with your questions. The first half of the webinar will cover the topics below. The second half will be the discussions/questions portion of the webinar.

• LMS Background
• Upper 1% Performers
• Pandemic Effect
• 4 Decades of Change
• Mexico and China – Can the US Compete?
• M & A – How not to sell?
• Discussions/Questions

Can't make the live session? No problem! Register and you will receive a recording this presentation via email.

Speaker Information

Loren M. Smith | CEO and Owner, Blue Valley Capital

Loren M. Smith’s wire harness experience spans four decades––as a former CEO and owner of a wire harness company, an M&A adviser to the industry, and a founder of the Wire Harness Manufacturers Association. By acquiring and integrating a number of harness companies, he built Monona Wire Corporation (MWC) into the leading wire harness supplier to the construction equipment industry, growing revenue from under $1 million to $85 million before selling his business to a private equity firm. As CEO of Blue Valley Capital for the last 15 years, he has put together dozens of deals for both sellers and buyers while providing board-level support and consulting services to owners of harness companies. Loren earned a BS degree from Miami University in Oxford, Ohio, and an MBA from Northeastern University in Boston. Residing in Marysville, Kansas, and Scottsdale, Arizona, he and his wife have three children and four grandchildren.

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IPC Adds My Dashboard to IPC.org

Now registered users can update their information online
Mar 25, 2021
| By Corey Lynn
My Dasshboard

IPC launched our reimagined website in November 2020. As part of our plan to continuously improve and update www.ipc.org, we've added My Dashboard to allow registered users to view and update their information.

My Dashboard's current functionality allows a registered user to manage their company, job details and alternate email. Users will also find an improved process for managing their email preferences and a clear indication of their membership status.

Keep an eye on your My Dashboard. Throughout the year we will be adding functionality to create a centralized portal to more easily access information about your purchases, education history and membership status.

Now, when you log in to ipc.org you will automatically be directed to your dashboard. Take a look and let us know what you think by using the feedback tool.

 

Automotive Leadership Growing in Electronics

Mar 24, 2021
| By Tracy Riggan

Of 12 honorees celebrated at the Annual Meeting and Awards Ceremony at IPC APEX EXPO this year, one third represent the automotive industry, reflective of the growing importance of high reliability in automotive electronics. Peter Tranitz, Continental Automotive, and Jan Pedersen, Elmatica, both received the Dieter Berman IPC Fellowship Award for significant contributions to global standards development efforts; Tranitz for his leadership and participation in and Pedersen for initiating and leading automotive focused standards projects in Europe. Benoit Dagenais, Innovative Vehicle Institute, received the Rising Star Award for contributions as co-chair leading the IPC WHMA-A-620 High-Voltage Cable Task Group developing IPC-9791, Electric Mobility Cable and Interconnects -- Visual Acceptability and Process Requirements.

General Motors China was honored with the Stan Plzak Corporate Recognition award, recognizing their contributions to the electronics assembly industry and support of IPC through participation in technical programs and in their own supplier standards. The leaders that earned these awards build on the work of other companies representing automotive needs in IPC standards development and education, such as Udo Welzel; Robert Bosch GmbH; Gaston Hidalgo, Toyota Motor North America; Continental Automotive, who were award recipients in 2020; long-time contributors John Deere Electronic Solutions and newer contributors like Ford. In addition, the technical conference sessions and professional development courses featured key automotive leaders like Jose Servin, Vitesco; Stan Rak, Continental Automotive Systems; Udo Welzel, Robert Bosch GmbH; and Lenora Clark, ESI Automotive.

For information on automotive standards under development, visit www.ipc.org/ipc-automotive-solutions.  

 

Virtually Speaking, IPC APEX EXPO 2021 was the Place to Learn, Connect and Collaborate

IPC APEX EXPO 2021, which went all virtual this year, exemplified how the electronics industry has responded to the COVID-19 global pandemic: with resiliency, agility, and an unwavering commitment to build electronics better.

As part of that change, IPC APEX EXPO offered new ways for attendees to get the most out of their virtual experience, including a three-track technical program, professional development courses for every engineering role and experience level, and most importantly, on demand access to content until June 13. For the first time, all professional development courses offered both live and on demand are applicable toward continuing education points for IPC MIT (Master IPC Trainer) recertification.

This year’s technical conference covered big issues like cybersecurity, data analytics, traceability, assembly materials and design, but the interest generated by those sessions focused on reliability. The high attendance in these sessions spoke volumes; the industry is facing rising expectations about the reliability of electronics products and services. High-reliability systems often involve miniaturized commercial electronics that function 24/7 in harsh-use environments. And they must meet these requirements even as the industry moves away from the use of lead, introduces new laminate materials, and leverages innovative manufacturing technologies to support smaller vias on higher density designs.

“I am very pleased with the 90 days of on-demand viewing. This allows me to absorb the content on my time frame and at my pace,” said Todd Brassard, vice president/COO, Calumet Electronics Corporation. “I’ve been viewing the introduction to RF/Microwave PCB design this week and will most likely have to watch it several times to fully process all the data and info. Since Calumet Electronics is making a large commitment in the RF and high-speed digital space, this content is highly valuable in helping me better understand this complex topic. I plan to work through much of this year’s content over the next few months.”

Attendees have a continuing opportunity to enjoy and learn from the educational content APEX EXPO generated. All technical conference sessions and professional development courses were recorded and are available to the registered and not-yet-registered until June 13.

“APEX EXPO is usually one of the busiest weeks of the year for IPC…this year, that was true as well. It was just a different kind of busy,” said John Mitchell, IPC president and CEO. “We are truly grateful to the dedicated attendees, speakers and exhibitors for sharing their time, their expertise, and their ability to pivot and adjust to a complete change in venue to help us make the first virtual IPC APEX EXPO a success. Frankly, I can’t wait until next year – I really miss my interactions with everyone live!”

In 2022, IPC APEX EXPO will return to the San Diego Convention Center, January 22-28. Industry researchers, engineers and academics are invited to submit an abstract for consideration in next year’s technical conference or professional development courses in the online Call for Participation at www.ipcapexexpo.org/education/call-for-participation.

 

Factory of the Future Webinar Series: Manufacturing Optimization: Now and Next

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2020 was a catalyst for innovation – in both what and how we build. Teams had to find new ways to complete build failure analysis remotely to keep to schedules, refactor supply chains, and bake agility into their everyday processes. In this webinar, Anna-Katrina will discuss the learnings, experiences, and best practices that evolved from the disruptions of 2020.

Can't make the live session? No problem! Register and you will receive a recording this presentation via email.

Speaker Information

Anna-Katrina Shedletsky | CEO and Founder of Instrumental Inc.

Anna-Katrina Shedletsky is the CEO and founder of Instrumental Inc., a manufacturing data company creating the first end-to-end optimization platform for product teams building electronic devices. Instrumental saves engineering time by combining AI-powered defect and anomaly detection, failure analysis tools, complete issue monitoring and reporting, and production-quality in-line tests into a single end-to-end optimization platform.

Anna-Katrina holds two degrees in mechanical engineering from Stanford University. Before founding Instrumental, she led system product design for the first-generation Apple Watch program, and contributed to several generations of iPod mechanical design.

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IPC Factory of the Future Information

Join a Factory of the Future Standards Committee Today
IPC has published several standards related to the Factory of the Future initiative to assist electronics manufacturers with implementing their modernization plans.

Interested in becoming part of the movement to help develop standards for Factory of the Future?
Learn More
Art of the Possible Podcast
From the factory floor to the executive suite, IPC President and CEO John W. Mitchell's the “Art of the Possible” podcast covers all manner of industry challenges and opportunities to better equip you with tools and ideas for success.
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IPC Request for Information on Five Persistent, Bioaccumulative, Toxic Chemicals

Mar 18, 2021
| By Kelly Scanlon

On March 16, 2021, the U.S. Environmental Protection Agency (EPA) announced a 60-day comment period to collect information from stakeholders on the final risk management rules to reduce exposure to five different persistent, bioaccumulative, and toxic chemicals (PBTs). In addition, the EPA issued a temporary 180-day “No Action Assurance” to ensure enforcement discretion is given regarding prohibitions that were set to take effect on March 8, 2021, on the processing and distribution of phenol, isopropylated phosphate (3:1) – referred to as PIP (3:1) – and articles to which PIP (3:1) has been added.

This request for information aims to bring together industry information on the manufacturing (including import), processing, or distribution of these five PBTs or articles containing these PBTs in the electronics manufacturing supply chain. We are issuing this request to harmonize the response from industry and efficiently consolidate information for submission to the EPA in response to the 60-day comment period. The electronics manufacturing supply chain has an opportunity to collect and provide information to the EPA to ensure the updated final rule provides realistic risk mitigation strategies and timelines to implement these strategies. The specific provisions outlined in the final rule will protect human health and the environment by addressing risks and reducing exposures to PBT chemicals to the extent practicable. Without industry input, the EPA will be unable to create realistic risk management strategies.

All information that is received by IPC as a result of this request will be aggregated and anonymized.

What are the five PBTs being regulated under TSCA?

  • Phenol, isopropylated phosphate (3:1) (PIP (3:1)) (CAS Number 68937-41-7) is used as a flame-retardant, plasticizer, and anti-wear additive or an anti-compressibility additive in hydraulic and lubricating oils, lubricants, greases, and adhesives and sealants. PIP (3:1) remains mostly unregulated by existing global chemical and product regulations and, therefore, companies manufacturing or importing articles have only recently begun the process of identifying PIP (3:1) in their supply chains.
  • Decabromodiphenyl ether (DecaBDE) (CAS Number 1163-19-5) is used as an additive flame retardant in plastic enclosures and is commonly found in wire and cable rubber casings, textiles, building and construction materials, and aerospace and automotive parts.
  • 2,4,6-Tris(tert-butyl)phenol (2,4,6-TTBP) (CAS Number 732-26-3) is commonly found in fuel additives, fuel injector cleaners and oil and lubricants.
  • Hexachlorobutadiene (HCBD) (CAS Number 87-68-3) is used as a solvent in rubber manufacturing and in hydraulic, heat transfer or transformer fluid.
  • Pentachlorothiophenol (PCTP) (CAS Number 133-49-3) is found in rubber products and it is used to make rubber more pliable in industrial uses.

Request for Information

The request for information applies to all five PBT chemicals:

  • PIP (3:1), 68937-41-7
  • DecaBDE, 1163-19-5
  • 2,4,6-TTBP, 732-26-3
  • HCBD, 87-68-3
  • PCTP, 133-49-3

We do not require any reporting format for your response, we only request that you provide feedback by April 16. IPC Contact: Kelly Scanlon, +1 202 661-8091.

Please respond to the following questions with detailed information. Without detailed information, IPC will be unable to provide adequate comments to the EPA and the EPA is unlikely to establish practicable compliance timeframes for industry.

All information that is received by IPC from this request will be aggregated and anonymized.

  1. Please tell us more about your company.  Include NAICS code(s).
  • Original equipment manufacturer
  • Electronics manufacturing services and assemblers
  • Printed Circuit Board manufacturer
  • Cable and wire harness manufacturer
  • Electronics industry parts and components supplier
  • Formulator
  • Other
  1. What is your role? (And, please tell us which of the five PBT chemicals apply)
  • My company does not process or distribute any of the five PBT chemicals or any PBT-containing articles in the U.S.
  • My company is processing a PBT chemical or a PBT-containing article in the U.S. (Please tell us which of the five PBT chemicals apply)
  • My company is a formulator and uses a PBT chemical in its formulations made in the U.S.
  • My company is a formulator and uses a PBT chemical in its formulations and imports them to the U.S.
  • My company is distributing a PBT chemical or a PBT-containing article in the U.S.
  • My company is importing a PBT chemical or a PBT-containing article into the U.S.
  1. Please provide a description of each article(s), component(s), or part(s) that contain a PBT chemical. 
  • Include a detailed description of the location of the PBT chemical.
  • Indicate whether the part or component is used for B2B or B2C products or in manufacturing/industrial applications.
  • The percentage of PBT-containing article/component/part compared to the total amount of similar article/component/part. (For example, are all cables in your product line made using this chemical or just certain types of cables?)
  1. Functionality
  • Function of PBT chemical in the article/component/part (e.g., plasticizer, flame retardant, adhesive/sealant).
  • Is there an industry standard or specification that requires this function for this article/component/part?  Please list and provide links to standards/specifications. If yes, does the standard/specification require the use of the PBT chemical specifically?
  1. Concentration
  • The concentration (parts per million) of the PBT chemical in the article/component/part. Please provide information for each level, if available (e.g., article vs. component vs. part). (A range can be provided.)
  1. Exposure
  • Assessment or likelihood of consumer exposure to the PBT chemical via the article.
  • Assessment or likelihood of worker exposure to the PBT chemical during processing. Are there workplace health and safety programs in place?
  1. Releases
  • Is the PBT chemical released into the environment during the manufacturing process or use of the PBT-containing part or component in the industrial setting?
  • Assessment or likelihood that the PBT chemical is released into the environment during manufacturing of the article/component/part?  During routine/normal use?
  1. Alternatives
  • The name of the chemistries that are used or that are available for use as an alternate for the PBT chemical in the article/component/part.
  • The concentration (parts per million) of the alternative chemical(s) in the article/component/part. (A range can be provided.)
  1. Please provide detailed information on what occurs at each stage of the chemical phase out process.
  • Procurement and Assessment of Substitute Parts with Suppliers (6 months)
  • Internal Quality Assessments (3 months)
  • Quality and Safety Certification (6 months)
    • Include a listing of the quality and safety certification standards to which articles are certified).
    • If possible, provide a letter from the certifying body confirming the certification timeline.
  • Supplier Coordination and Manufacturing Changes (6 months)
  • Shipment, Import and Distribution in US (3 months)
  1. Please provide additional information regarding known or expected impacts to the supply chain if the PBT chemical is prohibited and no longer available for domestic processing and distribution including in articles.

Additional Resources

IPC Releases Version 1.3 of IPC-2591, Connected Factory Exchange, the Industry’s Only Clean Data Pipeline for Shop Floor Communication

Latest version sets minimum messaging requirements for equipment listing on IPC-CFX-2591 Qualified Products List (QPL)

IPC announces the release of IPC-2591 v1.3, Connected Factory Exchange (CFX), the plug-and-play industry standard for factory communication which sets the baseline for any company to achieve Industry 4.0. In addition to messaging upgrades for predictive maintenance, energy management and improved alignment with IPC-HERMES-9852, IPC-2591 v1.3 sets minimum required message sets by machine type.

By establishing minimum required message sets, the 2-17 Connected Factory Initiative Subcommittee has established clear distinctions for equipment suppliers to quantifiably demonstrate their IPC-CFX capabilities and for EMS and OEM companies to have assurances that the equipment they are buying meets their IPC-CFX needs.

Any equipment provider can demonstrate their devices’ mandatory IPC-CFX capabilities with a listing on the IPC-CFX-2591 Qualified Products List (QPL). The IPC-CFX-2591 QPL is a listing of equipment that has passed third-party audit for sending and receiving mandatory messages. Equipment providers can also demonstrate capabilities for additional optional messages for increased utilization of IPC-CFX by their EMS and OEM customers.

IPC-CFX offers tremendous value to the entire electronics manufacturing industry by providing a clean, recognizable, rich stream of data throughout an entire manufacturing enterprise. Unlike other industry standards for equipment communication, IPC-CFX provides a plug-and-play, clean, secure data pipeline, enabling any OEM and EMS company to quickly and easily get immediate value out of their IPC-CFX implementation.

David Bergman, vice president, IPC standards and technology stated, “With IPC-CFX, clean data streams are documented and can be verified and qualified. Industry now has a format that can be encrypted to deal with cybersecurity concerns.” Dave further commented, “Manufacturers no longer need to guess what messages are available, they will simply know. To put your company – no matter the size, on the path to Industry 4.0, go with IPC-CFX.”

To learn more about IPC-CFX, visit www.ipc-cfx.org. To purchase IPC-2591, version 1.3, visit www.shop.ipc.org.

IPC-HERMES Introduction: "Smart Manufacturing Begins at the Machines" - Brought to you by the IPC EMS Management Council

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As the Smart replacement for the long-successful IPC-SMEMA standard, the IPC-HERMES standard directly addresses business-critical line automation needs, whilst retaining the freedom to select the ideal equipment from any chosen vendor. Hermes provides machine-to-machine (M2M) communication that allows machines to consistently transfer a physical PCB together with the PCB’s related Digital Twin. With an emphasis on flexibility to produce any quantity, of any product, at any time, Hermes features fully automated changeover and flow-control in adaptive multi / mixed production lines, without the need for specialist hardware or systems at each machine.

With connectivity between lines enhanced with the use of IPC-CFX (Connected Factory Exchange), Hermes and CFX machine-native support work seamlessly together to make any production line into the most agile, productive, quality-driven Smart line, featuring full automation of product flow, dynamic machine setup, as well as closed-loop and machine learning.

In this presentation, we look at the key business features and benefits of The IPC Hermes Standard, as well as seeing how Hermes works alongside CFX, vastly reducing integration and communication costs and risk.

Presenter: Michael Ford

Working for Aegis Software provides Michael the opportunity to apply his software for electronics assembly manufacturing experience to further drive technology solution innovation, satisfying evolving business needs in modern digital manufacturing.

Starting his career with Sony, including eight years working in Japan, Michael has been instrumental in creating and evolving revolutionary software solutions for assembly manufacturing, that meet the most demanding expectations.

Today, Michael is an established thought leader for Industry 4.0 and digital Smart factories, an active contributor to industry standards. In 2020, Michael was given an IPC President’s Award as recognition for contributions including the CFX, traceability, secure supply-chain and Digital Twin standards. Michael also regularly contributes articles, columns and blogs in several leading industry publications.

Presenter: Thomas Marktscheffel

Thomas is working for ASM Assembly Systems and in his job as Product Manager he is responsible for defining and building the SW Integration Platform for ASM’s SMT # 1 Smart Factory. As a member of several IPC committees, he is strongly driving for global industry standards such as CFX and Hermes to provide plug and play connectivity for SMT Smart Factories.

Begin of May 1989 Thomas started his career at Siemens AG in Karlsruhe / Germany as a SW developer for power plant control systems. Thomas moved on along different job positions within Siemens AG – Industrial Automation, Motion Control, Siemens Corporate Research „CMM Process Assessments“ – and, begin of 1999, Thomas joined Siemens SIPLACE, which became ASM Assembly Systems begin of 2011. After a 3-year job delegation to Siemens SIPLACE North America in Norcross / GA / USA end of 2003 Thomas became Head of Global SW R&D for Siemens SIPLACE. His time in R&D included a 3-year work assignment to Singapore.

Presenter: Håkan Sandell

Håkan is working for Mycronic, directing integration development efforts across product lines including jet printers, dispensers, pick & place, inspection machines and storage systems. His field covers usability, connectivity and automation to make systems work better together, both between Mycronic’s own products and other brands. Since November 2019 he is chair of the Hermes Standard Initiative.

Håkan has more than 25 years experience of the SMT industry. Already before starting as an electronics designer at Mydata in 1995, he had previously worked within PCB manufacturing. Since then he has covered many different roles within Mydata/Mycronic R&D, often in managing positions. Håkan’s career also includes working with almost all different product areas in the Mycronic group, from mask writers to dispensers, collaborating with R&D units from US to China/Japan. Since 2019 Håkan focuses on delivering solutions for today’s and tomorrow’s digital factories.

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