Mid-year U.S. Economic Outlook: Will Headwinds Curtail the Recovery?

Date
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This free webinar will examine the impacts COVID-19 is having on the U.S. economy and the prospects for an economic recovery in the coming months. Shawn Dubravac, IPC chief economist explores possible recovery scenarios and what they mean for the electronics manufacturing industry. We’ll take a deep dive into the latest economic data, trends, and risks. We’ll also explore IPC’s current economic outlook and provide a near-term forecast.

Online Event

3000 Lakeside Dr.
Suite 105N
Bannockburn, IL 60015
United States

Online Event

Online Event
3000 Lakeside Dr.
Bannockburn, IL 60015
United States

IPC Statement on June’s Job Numbers

The following statement is attributed to John Mitchell, IPC president and CEO, regarding June’s unemployment report from the U.S. Department of Labor. Based on the data, IPC estimates the electronics manufacturing industry gained 20,000 jobs.

“Headwinds remain, given economic uncertainties and operating restrictions related to COVID. But the employment numbers suggest electronics manufacturers are successfully adapting to the new environment by putting in place worker health practices that allow them to return to normal operating levels. If Coronavirus-related restrictions ease in the coming months, IPC predicts further job gains will wipe out a job deficit of 23,000 from April and May.”

IPC Announces Paige Fiet as First IPC Board of Directors Student Liaison

For the first time, the IPC Board of Directors will include an IPC student member with a full voting board seat, in response to increased student member involvement in IPC and the potential for student members, as the emerging workforce, to influence workforce development. Paige Fiet, president of the IPC Student Chapter at Michigan Technological University, was elected as the first IPC Board of Directors Student Member Liaison. The IPC Education Foundation (IPCEF) developed the nomination/election process with IPC Student Chapter advisors and every IPC Student Chapter member was eligible to vote.

“We discovered that our IPC student members are eager to learn more about the industry and to engage with IPC member companies to understand the skills needed to get a job,” said IPC President and CEO John Mitchell. “What better way to understand the student experience and to connect to our next generation of engineers than to add a full voting board seat for an IPC Student Chapter member? We are very excited to welcome Paige to the IPC Board of Directors.”

Currently a summer employee at Calumet Electronics, Fiet attends Michigan Technological University, where she is pursuing an electrical engineering degree with a biomed application. “It is an honor for me to have been chosen and I feel like I will get invaluable experience and insight into the inner-workings of IPC,” stated Fiet. “I hope to convey the needs of the students to the Board of Directors. I also intend to learn how to better reach the IPC Student Chapter members and show them how involvement with IPC can benefit them.”

As a student Board member, Fiet will have full voting rights and attend all Board meetings. Her role is focused on bringing a fresh perspective to the table, based on students’ needs and aspirations as a representative of her fellow IPC student members. She will serve until December 2021.

IPC Partners with in4ma to Support EMS Industry in Europe

IPC has partnered with German-based in4ma to better support standards, education and advocacy needs for the growing EMS industry in Europe. Formed by Dieter G. Weiss in 2015, in4ma has been a leading market research and industry analysis consulting company supporting the 45 billion Euro EMS industry.       

Philippe Leonard, senior director of European Operations for IPC stated, “We have been closely following Dieter’s work for some time – he is a true champion for the industry. We are looking forward to working with him to develop programs to help our members become more financially successful.”

“We are very fortunate to be working with Dieter,” said Sanjay Huprikar, vice president of solutions for IPC. “His incredible work in fostering meaningful and timely statistical analysis, market surveys and networking for the industry will be instrumental in helping us define new product offerings to help the EMS industry build electronics better.”

For more on in4ma and their work, including Weiss’s new reports on the impact of COVID-19 on EMS companies in Europe, visit www.in4ma.de.

North American PCB Industry Sales up 1.0 Percent in May

IPC Releases PCB Industry Results for May 2020

IPC announced today the May 2020 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.10.

Total North American PCB shipments in May 2020 were up 1.0 percent compared to the same month last year. Compared to the preceding month, May shipments fell 3.0 percent.

PCB bookings in May increased 0.4 percent year-over-year but fell 20.2 percent from the previous month.

“Orders continue to outpace shipments as supply chains adjust to disruptions and demand shocks caused by COVID-19. Strong orders for North American PCBs in recent months have led to longer lead times,” said Shawn DuBravac, IPC chief economist. “Orders in May suggest global supply chains might now be recalibrating to adjusted levels of demand.”


Note: The December 2019 ratios have been revised since their original publication due to updated data from statistical program participants


Note: The June, October, and December 2019 growth rates have been revised since their original publication due to updated data from statistical program participants

View Chart 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.

Editors:  See attached graphs in PDF.

View all Book-to-Bill Ratios