USMCA is Just the Start

Jul 09, 2020

By Shawn DuBravac, IPC Chief Economist

The United States-Mexico-Canada Agreement (USMCA) went into effect on July 1, replacing and modernizing the 26-year-old North America Free Trade Agreement (NAFTA). In many ways, the USMCA reinforces our continent-wide commitment to some $1.3 trillion in trilateral trade flows, while adding key provisions to bring the agreement into the 21st century.

The pact will be a net positive for America increasing both the size of the economy and U.S. employment. Diverse industries are likely to benefit, while manufacturing is expected to see the largest percent gains in production, wages, employment and exports.

The USMCA comes at a time when many companies are rethinking thin, globally dispersed supply chains amid rising trade tensions and COVID-19-induced disruptions. Both ongoing trade wars and COVID-19 have revealed the fragility embedded in modern manufacturing philosophies.

The USMCA also comes at a time when regional trade agreements are taking a larger role in defining the course of global commerce and the cost of doing business in the years to come. There are 303 regional trade agreements in place today, and that number is likely to rise in the aftermath of COVID-19.

The USMCA and other regional trade agreements are strengthening the economics of regionalization, and COVID-19 is accelerating the move towards a new equilibrium. Strengthening domestic production capabilities in the 21st century requires strengthening regional supply chains. It isn’t enough to focus solely on domestic capacity. COVID-19 revealed life-or-death shortcomings in our supply chains. If we are serious about revitalizing U.S. manufacturing, we must also be serious about manufacturing in Canada and Mexico.

This commitment requires a North American Manufacturing Initiative to focus on coordinating pandemic response and strengthening the region’s manufacturing competitiveness. Specifically, the three North American governments should grow regional capacity for manufacturing and create systems to measure and monitor industrial base resiliency. They also should determine a regional definition of “essential activity,” which would help drive the production of crucial materials, parts or products across multiple borders.

Now is the time for all nations to work with their neighbors to ensure the strength and resiliency of regional supply chains for critical industries, and in so doing, to strengthen each country individually. Greater coordination across regions will help ensure our supply lines can bounce back from further disruptions in the decades to come.

North American PCB Sales and Orders Decreased in November

PC Releases PCB Industry Results for November 2018

IPC announced today the November 2018 findings from its North American Printed Circuit Board (PCB) Statistical Program. Year-over-year sales and order growth turned negative in November, and the book-to-bill ratio declined to 1.01.

Total North American PCB shipments in November 2018 were down 3.0 percent compared to the same month last year. This year to date, shipments are 8.6 percent above the same period last year. Compared to the preceding month, November shipments decreased 9.9 percent.

PCB bookings in November were down 12.5 percent year-over-year. Year-to-date order growth was 6.6 percent above the same period last year. Bookings in November were down 16.6 percent from the previous month.

“North American PCB industry sales growth in November fell into negative territory for the first time in 16 months, and orders also decreased sharply compared to the same month last year,” said Sharon Starr, IPC’s director of market research. “The decrease in orders brought the PCB book-to-bill ratio down to its lowest level in almost two years. It is still in positive territory, but just barely. The 22-month run of positive ratios may be nearing its end, but it still offers an indication of potential sales growth for a few more months at least.”


Note: The January 2018-March 2018 ratios have been revised since their original publication due to updated data from statistical program participants.


Note: The January 2018-March 2018 growth rates have been revised since their original publication due to updated data from statistical program participants.

View Chart in PDF

Detailed Data Available

The next edition of IPC’s North American PCB Market Report, containing detailed fourth-quarter 2018 data from IPC’s PCB Statistical Program, will be available in February 2019. The quarterly report presents 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. This report is available free to current participants in IPC’s PCB Statistical Program and by subscription to others. PCB companies that are IPC members doing business in North America are invited to contact marketresearch@ipc.org for information about participating. More information about this report can be found at www.ipc.org/market-research-reports.

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 at the end of each month. Statistics for the current month are normally available in the last week of the following month.

IPC Commends Passage of FIRST STEP Act

John Mitchell, president and CEO of IPC issued the following statement on the U.S. Senate’s vote this week to enact a criminal justice reform bill called the FIRST STEP Act.

“IPC applauds the U.S. Senate for coming together in a bipartisan manner to address criminal justice reform with the passage of the FIRST STEP Act, which includes an important provision to build up the high-tech workforce while reducing recidivism. Specifically, the bill calls for partnerships with schools and industry organizations to offer vocational training and certifications to help inmates transition into the workforce. Providing more workforce development opportunities in the electronics industry is among IPC’s top priorities, and thus we look forward to continuing to work with governments and partners at all levels to implement this provision.”

IPC Announces the Student Soldering Hands-on Experience at IPC APEX EXPO 2019

IPC’s new Education Foundation increases involvement in STEM programs

Following a successful STEM Outreach program introduced at IPC APEX EXPO 2018, IPC will build on last year’s program for high school students by introducing a hands-on soldering experience to students from the San Diego, Calif. Region at IPC APEX EXPO 2019.

The IPC Education Foundation will host approximately 100 students for a day-long event including a panel session of industry leaders who will provide detailed information on the electronics manufacturing industry, as well as a tour of the show floor, focusing on the high-tech aspects of the IPC CFX showcase/working production lines. For the first time, students will be able to experience hands-on soldering at world championship solder stations with the support of IPC trainers teaching them the purpose, design, and fundamentals of a printed circuit board (PCB). Local San Diego-area schools attending the event include Morse, Mission Hills, Otay Ranch, San Marcos, e3 Civic, and North County Trade Tech High Schools.

“The goal of the program is to expose students to see, feel, touch and experience what this industry is all about,” said Colette Buscemi, IPC’s senior director of education programs, “and there is no better way to do that than putting tools in their hands, so they can see up close just how the equipment works.”

IPC’s STEM Outreach program is designed to encourage students to consider a career in the electronics industry by spreading awareness of electronics manufacturing as a career choice. The IPC Education Foundation expects to engage the emerging workforce, improve the perception of the manufacturing industry, prepare the talent pipeline, and to offer scholarships to deserving students, “It is an effort to expose a new generation to the potential of rewarding careers in an industry that requires workers with critical skills,” added Buscemi.

Sponsors of the STEM Outreach program/Student Soldering Hands-on Experience are Blackfox Training Institute, I-Connect007, ITW EAE, Mycronic, Nordson, Panasonic and Weller Tools. “This program is subsidized by generous donations from scholarships and membership contributions,” said Alicia Balonek, IPC senior director of trade shows and events, “Staff from these companies will provide live demonstrations of the working equipment in their booths during the tour of the show floor and participate in panel discussions. It’s truly a community of people coming together to make this happen.”

For more information on the Student Soldering Hands-on Experience and other activities taking place at IPC APEX EXPO 2019, visit www.ipcapexexpo.org. For more information on the IPC Education Foundation and exciting future programming, contact Buscemi at ColetteBuscemi@ipc.org.

Best Technical Paper at IPC APEX EXPO 2019 Selected

The best technical conference paper of IPC APEX EXPO® 2019 has been selected. Voted on through a ballot process by members of the IPC APEX EXPO Technical Program Committee, the paper authors will receive their awards during the opening keynote session on Tuesday, January 29, 2019.

Taking top honors, the winning paper is, “Reducing Dust Deposition on Electronic Equipment by Optimizing Cooling Air Flow Patterns” by Chen Xu, Nokia. His co-author was: Jason Stafford, Imperial College London. This paper will be presented during Technical Conference Session 36 (Surface Finish Reliability/ Gold Brush Plating Repair/ Creep Corrosion) on Thursday, January 31.

This year, two papers were selected in the honorable mention category. Honorable mention went to, “Head-on-Pillow Defect Detection – X-ray Inspection Limitations” by Lars Bruno, Ericsson AB. His co-author was: Benny Gustafson, Ericsson AB. This paper will be presented during Technical Conference Session 3 (Assembly/Inspection -- BTC/ BGA) on Tuesday, January 29.

Honorable mention also goes to “Analyzing a Printed Circuit Board with Oxide Residue Contamination” by Wade Goldman, The Charles Stark Draper Laboratory, Inc. His co-authors were: Andrew Dineen; Hailey Jordan; Curtis Leonard, The Charles Stark Draper Laboratory, Inc.; and Edward Arthur, Raytheon Company, Space and Airborne Systems. This paper will be presented during Technical Conference Session 25 (Failure Analysis) on Wednesday, January 30.

The papers were evaluated on their technical content, originality, test procedures and data used to deduce conclusions, quality of illustrations and the clarity and professionalism of writing as well as value to the industry.

To register for the IPC APEX EXPO technical conference or for more information on all the activities taking place including standards development committee meetings, professional development courses, the exhibition and more, visit www.IPCAPEXEXPO.org.

The Smart Factory is Becoming a Reality as IPC APEX EXPO 2019 Hosts Two Live Production Lines

Collaboration between IPC CFX and HERMES Standards to be highlighted

Creating the next generation of digital Industry 4.0 technology standards, IPC will again take a major step forward at IPC APEX EXPO 2019, featuring two live production lines, at which visitors can see and experience achievements made in digital standards development over the past year.

The first line will feature both the HERMES standard (IPC-9852) and IPC’s Connected Factory eXchange (CFX) IoT messaging standard (IPC-2591), working seamlessly together to deliver SMT automation value. The second line will feature the wider application of IPC CFX across multiple technologies of assembly production, including manual processes. Both lines feature machines from different vendors, all speaking the same language, creating demonstrable value from machine-to-machine communication, creating a simple to operate, practical, smart and fully connected manufacturing environment. Both standards are currently out for ballot and are expected to be approved and released prior to IPC APEX EXPO.

“Last year at IPC APEX EXPO, we started with a groundbreaking, virtual demo,” said David Bergman, vice president, standards and training, “and this year we will manufacture actual assemblies on the show floor. The CFX/Hermes line will run different board sizes to visibly demonstrate how the two standards complement each other, providing unprecedented automation of production. We are excited to have the collaboration of so many fantastic companies working together to reach Industry 4.0. This is truly an exciting time to be in electronics manufacturing.”

The following companies will be participating in the show floor production lines:

  • Aegis Software
  • ASM Assembly Systems
  • Asys
  • Cogiscan
  • Creative Electron
  • FlexLink
  • Fuji
  • Heller
  • Keysight
  • KIC
  • Koh Young
  • Kulicke & Soffa
  • Nutek
  • OK International
  • Pemtron
  • Saki
  • Test Research, Inc.
  • Vayo

In addition to the show floor production lines, IPC will host an Industry 4.0 Buzz Session, “How IPC-2581 Enables Industry 4.0” on Wednesday, January 30. The Buzz Session will feature short presentations, a panel discussion and opportunities for attendees to ask questions.

For more information on the IPC CFX Production Line Showcase or Buzz Session on Industry 4.0, visit www.ipcapexexpo.org and for more information on the CFX standards, visit, www.ipc.org/Connected-Factory-Initiative.

North American PCB Sales Growth Continues but at a Slower Pace

IPC Releases PCB Industry Results for October 2018

IPC announced today the October 2018 findings from its North American Printed Circuit Board (PCB) Statistical Program. Year-over-year sales and order growth were positive in October, and the book-to-bill ratio held steady at 1.04.

Total North American PCB shipments in October 2018 were up 5.3 percent compared to the same month last year. This year to date, shipments are 9.7 percent above the same period last year. Compared to the preceding month, October shipments decreased 11.9 percent.

PCB bookings in October were up 2.2 percent year-over-year. Year-to-date order growth was 8.5 percent above the same period last year. Bookings in October were up 0.4 percent from the previous month.

 “The North American PCB industry sales growth trend continued for the 14th consecutive month and order growth rebounded, but the downward trend in order growth rates seen in recent months is now reflected in slower sales growth” said Sharon Starr, IPC’s director of market research. “We have seen a long period of growth. Book-to-bill ratios have been above parity for 21 straight months, which indicates the likelihood of continued sales growth at least for the rest of this year.”


Note: The January 2018-March 2018 ratios have been revised since their original publication due to updated data from statistical program participants.


Note: The January 2018-March 2018 growth rates have been revised since their original publication due to updated data from statistical program participants.

View Chart in PDF

Detailed Data Available

The next edition of IPC’s North American PCB Market Report,containing detailed fourth-quarter 2018 data from IPC’s PCB Statistical Program, will be available in February 2019. The quarterly report presents 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. This report is available free to current participants in IPC’s PCB Statistical Program and by subscription to others. PCB companies that are IPC members doing business in North America are invited to contact marketresearch@ipc.org for information about participating. More information about this report can be found at www.ipc.org/market-research-reports.

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 at the end of each month. Statistics for the current month are normally available in the last week of the following month.

Award-winning Entrepreneur in Women’s Leadership, Dr. Cortney Baker, to Keynote Women in Electronics Reception at IPC APEX EXPO 2019

Dr. Cortney Baker, nationally recognized authority on women in leadership, will speak at the IPC APEX EXPO Women in Electronics reception on Wednesday, January 30, 2019, 6:00-7:00 p.m.

Her keynote, “Closing the Gender Gap and Conquering the Mythical Glass Ceiling” will cover the progress women have made in workplace equality despite the continuing gender wage gap, and the underrepresentation of women in executive positions in various industries. Dr. Baker will discuss the challenges women face when advancing their careers, as well as strategies to implement to get beyond these challenges. Participants will gain knowledge of how their organizations can support and promote high potential women into higher level leadership roles.

Host of the talk show “Conquering the Glass Ceiling with Dr. Cortney” and author of “Unlimited: Conquering the Myth of the Glass Ceiling,” Dr. Baker was named the 2016/2017 Texas Business Woman of the Year. A researcher, author, trainer, and TEDxspeaker, Dr. Baker is the founder and CEO of KidsCareHome Health, a multi-million-dollar healthcare organization in Texas and Colorado. She holds an Ed.D in organizational leadership from Pepperdine University.

The Women in Electronics reception, sponsored by Indium Corporation, invites women in the electronics industry to join their colleagues across the supply chain to network, share ideas, and discuss career experiences.

“We are thrilled to welcome Dr. Cortney Baker to IPC APEX EXPO 2019,” said Alicia Balonek, senior director, trade shows and events. “We are eager to learn her insights on expanding women’s leadership roles and to share our experiences navigating a career in a male-dominated industry.”

The Women in Electronics reception and other special events as well as access to the exhibit hall are free to those who register in advance, a savings of $40 on-site. Attendees who register by December 21 will save 20 percent off registration fees. In addition, attendees who register for the All-Access Package will receive a significant percentage off a la carte options. Details, including dates, time and complete registration options, are available at www.IPCAPEXEXPO.org.

IPC APEX EXPO Innovation Awards Honor Outstanding Products and Services for the Electronics Industry

Members and exhibitors at the upcoming IPC APEX EXPO 2019 will have the opportunity to promote their new ideas in electronics by competing for the IPC APEX EXPO 2019 Innovation Awards, awards that recognize outstanding products and services for the electronics industry.

“The IPC Innovation Awards allow us to celebrate the top innovators and thought leaders who are changing the technological landscape of the electronics industry,” said John Mitchell, IPC president and CEO. “IPC APEX EXPO provides a one-of-a-kind opportunity for exhibitors to showcase the best-of-the-best of their products and services. We look forward to a rousing competition at APEX EXPO 2019.”

The IPC APEX EXPO Innovation Awards program recognizes honorees among the following categories:

  • Assembly
  • Assembly Materials
  • Environmental
  • Industry 4.0
  • PCB Design
  • PCB Fabrication
  • PCB Materials
  • Test & Inspection
  • Services
  • Software

Products and services will be reviewed, rated and scored by a panel of industry experts who will provide a numerical value based on the following criteria: How is this product innovative?  How is this product changing the manufacturing industry?  What value will customers experience with this new product?

Each product will receive a cumulative score with a baseline value derived from the cumulative scores in each category.  All scores above the baseline are designated as Honorees.

The Best of Innovation Award will be awarded to the highest-rated product or technology in each category, as long as that product surpasses a previously determined minimum score.

If the highest-rated product in a category does not surpass the minimum score, there will be no Best of Innovation Award for that category. All award designations by our panel are final.

To be eligible to apply for a product or service to be considered for the Innovation Awards, companies must be an exhibitor at IPC APEX EXPO 2019 and a member of IPC. 

There is a $150 non-refundable application fee to apply for the Innovation Awards.  Applications must be submitted by December 7, 2018. Winners will be notified by early-January and awards will be presented during the keynote presentation at IPC APEX EXPO on Tuesday, January 29, 2019.

For more information or to view the application, visit: http://www.ipcapexexpo.org/html/exhibit/already/innovation-awards.htm.

Executive Forum at IPC APEX EXPO Focuses on Advancing Automotive Electronics

Senior-level executives from across the global electronics industry supply chain will gather to discuss challenges and opportunities of the burgeoning and rapidly changing automotive electronics industry during the IPC Executive Forum on Advancing Automotive Electronics at IPC APEX EXPO 2019. Presented by IPC’s Hall of Fame Council on January 28, the forum will focus on automotive electronics costs, reliability and programs from concept to production.

The Forum will include speakers from the United States, Asia and Europe to join the discussion on the challenges and opportunities for IPC and the electronics industry. Speakers include representatives from MacDermid-Enthone, Microtek Labs China, Elga Europe, Robert Bosch GmbH Germany, Nexteer Automotive, APTIV, Optimal+ and Ventec International Group.

“As the automotive industry increasingly incorporates electronics into its manufacturing, this provides a unique opportunity for IPC and our members to participate in this continually evolving field,” said Gene Weiner, Executive Forum program chair. “This Forum provides us with a chance to hear from subject matter experts about the many ways for involvement of our industry in automotive electronics.”

Topics will include materials in automotive electronic packaging, PCB reliability testing for automotive electronics, developing film photoresist to meet automotive fine line circuit needs, cost models with suppliers and understanding costs of new technology, developing and getting approval of new material for automotive electronics.

“We are thrilled that the Hall of Fame Council has put together such an important event for our members’ executives,” said Sanjay Huprikar, vice president of Solutions at IPC. “Following our June Automotive Electronics Forum in Nuremberg and the September launch of our new Reliability Council in Frankfurt, this upcoming event in January at IPC APEX EXPO directly supports IPC’s efforts to engage heavily with the transportation vertical.” 

Information and registration for the Executive Forum on Advancing Automotive Electronics is available online at www.ipcapexexpo.org.

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