M-EXPO Wire Processing Technology 2019 Exceeds Expectations

The third annual M-EXPO Wire Processing Technology event held in Ciudad Juárez, México at the Cuatro Siglos Convention Center on October 9-11, 2019, exceeded expectations. This event was co-located with the ninth annual EXPO-MRO. These two events hosted more than 6,500 attendees.

M-EXPO 2019 sold out of event space a month before the event with more than 45 exhibitors which doubled its event space from 2018. This event showcases the latest equipment, tools, materials and technologies within the wire and cable industry from leading industry suppliers such as Komax, Schleuniger, Cirris, HellermannTyton, HST, Identco, Immsa, Lakes Precision, Lone Star, Schaefer Megomat, IPC/WHMA, Wiring Harness News, BiTech, Cami, Curti, ETCO, Schunk, Ricardo & Barbosa, and many more.

“This show is fantastic, haven’t seen anything like this in over a decade – you can smell business here!” said Edgar Bonilla, key account manager at Henkel Corporation/Adhesives Technologies.

In addition to the sold-out exhibit floor, the show sponsored by IPC/WHMA, included an exciting lineup of conferences and training sessions. These free sessions held throughout the three-day event covered many relevant industry topics and generated numerous insights into the wire and cable industry. M-EXPO held a hands-on workshop, “IPC/WHMA-A-620 Emerging Needs for Criteria – Repair/Rework, Design for Manufacturing (DFM) Issues, High Voltage Electric Mobility,” presented by IPC/WHMA. In this workshop, the attendees actively participated and interacted with industry expert, Constantino Gonzalez, on real-life repair/rework examples and discussed procedures involving discrepancies in different areas such as labeling, crimping and moisture and corrosion.

M-EXPO 2019 Presentations

  • What is IPC/WHMA? What Can IPC/WHMA Do for You? -- Presented by IPC/WHMA
  • Managing the Risks of your Supply Chain -- Presented by APICS
  • Crimping Beyond the Basics -- Presented by Crimping & Stamping Technologies
  • IPC/WHMA-A-620 Emerging Needs for Criteria – Repair/Rework, Design for
  • Manufacturing (DFM) Issues, High Voltage Electric Mobility -- Presented by IPC/WHMA
  • Arcadia Wire Harness Software -- Presented by Cadonix
  • Ultrasonic Welding -- Presented by Schunk Sonosystems

“M-EXPO brings a focused and exclusive show for the wire and cable processing industries to the El Paso/ Juárez region and introduces large CMs and OEMs with the top industry suppliers of wire processing technology, equipment and tooling in all market segments,” said David Bergman, WHMA executive director. “We would like to thank all our exhibitors and presenters for making this year’s event so successful.”

M-EXPO 2020 will take place October 14–16 with plans to increase the number of booths/exhibitors to 75. For companies interested in exhibiting at M-EXPO 2020, contact Ricardo Aguirre at 915-304-4291 or contact.us@mexpowire.com.

Wage and Salary Survey for North American Electronics Assembly Companies Open Until November 1

IPC's biennial wage rate and salary survey for the North American electronics assembly industry is open with a response deadline of November 1. The confidential survey covers compensation for 40 hourly and salaried technical, manufacturing and sales positions at original equipment manufacturers (OEMS) and contract electronics manufacturing services (EMS) companies in North America. It also covers salary budget growth, planned increases for 2020, and employee benefits and policies.

Companies can use this study to assess their competitiveness in today’s labor market. The data will be segmented by company type, size and region, enabling companies to assess their competitive position as employers within their region and company-size tier. The study also enables companies to benchmark their compensation, benefits and policies against industry norms, and update their human resource management strategies. It is unique in in its focus on the North American electronics assembly industry.

The survey is intended for HR professionals and executives who can provide data on a range of positions and policies. Survey participants will receive the report on the findings at no cost. The survey can be accessed at www.ipc.org/WageSurvey2019.

Participants are asked for their IPC company code to start the survey. They can obtain their codes by contacting IPC’s market research team at marketresearch@ipc.org or calling +1 847-597-2868. The company code is used to protect the confidentiality of participants’ data. IPC publishes only aggregate numbers and maintains strict confidentiality. The report will not identify participating companies.

For additional information on IPC’s market research services, visit www.ipc.org/industrydata or  www.ipc.org/market-research-reports.

North American PCB Business Growth Continues

IPC Releases PCB Industry Results for September 2019

IPC announced today the September 2019 findings from its North American Printed Circuit Board (PCB) Statistical Program. Sales and orders continued to outpace last year and the preceding month in September. The book-to-bill ratio strengthened to 1.04.

Total North American PCB shipments in September 2019 were up 3.8 percent compared to the same month last year. Year-to-date sales growth as of September remained positive at 7.0 percent. Compared to the preceding month, September shipments increased 10.2 percent.

PCB bookings in September increased 12.2 percent year-over-year, pushing year-to-date order growth up to 3.0 percent. Bookings in September were up 2.5 percent from the previous month.

“Business growth is continuing in the North American PCB industry, based on uniformly positive September results in both sales and orders, as well as an increase in the book-to-bill ratio,” said Sharon Starr, IPC’s director of market research. “The growth cycle that began in mid-2017 has continued for over two years, although year-on-year growth rates have been modest in recent months. The strengthening book-to-bill ratios in the last two months are good news, but they were preceded by three months at or below parity. This indicates the likelihood of slow but mostly positive sales growth in the next two quarters.”


Note: The January 2019 ratio has been revised since its original publication due to updated data from statistical program participants.


Note: The November 2018, January 2019 and June 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

The third-quarter 2019 edition of IPC’s North American PCB Market Report, containing detailed data from IPC’s PCB Statistical Program, will be published by mid-November. 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.

U.S. Electronics Manufacturers Grappling with Higher Costs from U.S. and Chinese Tariffs; U.S. Jobs and Investments at Risk

Almost 90 percent of U.S. electronics manufacturers are troubled by the higher tariffs imposed by the United States and China on each other’s imports, and some are investing less in the United States and hiring fewer workers as a result.

These are among the results of a survey conducted by IPC, a global association representing the electronics manufacturing industry, which queried its U.S. members between September 25 and October 2, 2019. Among the survey results:

  • On average, companies report they have seen tariff increases on 31 percent of the total dollar value of the products they import. Twenty-five percent of companies report over half of the dollar value of the products they import are facing higher tariffs.
  • Some 69 percent of companies report lower profit margins as a result of increased tariffs, with a ripple effect of negative consequences: 21 percent report they are reducing investment in the United States, and 13 percent say they are cutting back on hiring and/or reducing headcount.
  • More than a third of companies report they cannot increase their prices to cover the cost of higher import tariffs, due to various factors.  
  • Fifty-one percent of responding companies report they are now sourcing from countries other than China as a result of increased tariffs on Chinese imports.

“As the IPC research documents, rising tariffs are putting a painful squeeze on many U.S. electronics manufacturers,” said IPC Chief Economist Shawn DuBravac. “Many are facing supply-chain disruptions and steeper costs from the tariffs that have been imposed to date, and the impacts will grow as the trade war drags on.”

“Our industry has longstanding concerns about some of China’s industrial policies, including government subsidies and intellectual property violations,” said IPC President and CEO John Mitchell. “But addressing unfair trade practices by ratcheting up tariffs is like using a sledgehammer to make orange juice. In both cases, it’s the wrong tool and makes a mess of the job.”

“We call on the governments of the United States and China to de-escalate the tariffs, focus on results at the negotiating table, and conclude agreements that address long-standing issues of concern to both sides,” Mitchell added. “We also call on all members of the World Trade Organization to restore that body’s ability to play its role as arbiter of international trade disputes, so that nations won’t feel a need to resort to tariffs to resolve trade disputes,” Mitchell said.

IPC Joins European Partnership for Responsible Minerals

IPC today announced it has joined the European Partnership for Responsible Minerals (EPRM) as part of its continuing efforts to help IPC members navigate the complex challenge of responsible minerals sourcing.

The EPRM is a multi-stakeholder partnership aiming to break the links between minerals extraction, conflict, and human rights violations and to increase the proportion of responsibly produced minerals in war-torn regions such central Africa and Colombia. The organization builds partnerships and shares knowledge about due diligence regarding four minerals – tin, tantalum, tungsten and gold – which are used in many electronic components in key sectors such as automobiles, health care, ICT, aerospace and defense. The group is especially focused on assisting small- and medium-sized enterprises with their due diligence requirements. 

The EPRM is preparing to launch an initiative in November called “Due Diligence Ready,” through which companies will be able to access information, tools, and training materials to prepare for a new EU regulation that is coming into effect on January 1, 2021.

IPC has been involved in the conflict minerals dialogue for years, representing electronics manufacturers in meetings and negotiations with policymakers; developing standards and guidance to promote industry compliance; and participating in the Organization for Economic Cooperation and Development (OECD) as it developed international guidance. The IPC Conflict Minerals Data Exchange standard is currently undergoing revisions to incorporate the OECD’s guidance, with a revised version expected in early 2020.

“IPC and its members deplore the violence and human rights abuses that are related to minerals extraction in some parts of the world, and we want to be part of the solution,” said Chris Mitchell, IPC’s vice president of global government relations. “At the same time, we are opposed to heavy-handed regulations that impose undue burdens on our members with little or no results to show for their efforts. This is why we have put so much effort into IPC’s conflict minerals task group and our global industry standard, which are the best sources of guidance for electronics manufacturers. Our new membership in the EPRM will provide another helpful resource for our members, especially those who do a significant amount of business in Europe.”  

“EPRM warmly welcomes IPC as a new EPRM member,” said Boukje Theeuwes, Chair of EPRM. “We are excited about the potential of IPC and its members to contribute to EPRM’s objective of increasing both the demand and supply of responsibly produced minerals from conflict-affected and high-risk areas. We will join forces to increase knowledge and implementation of due diligence in international supply chains, and support companies in the journey of responsible mineral sourcing. We are looking forward to a fruitful cooperation with IPC and its member companies.”  

IPC Hand Soldering Competition Winner Crowned at NEPCON Japan

The 2019 IPC Hand Soldering Competition Japan concluded at NEPCON Japan in Nagoya September 20, celebrating the outstanding skills and professional achievements of talented manufacturing floor workers. Thirty-two competitors from renowned companies such as Panasonic, Mitsubishi Electronics, Advantest, NEC Space Technology and others participated in the event.

After eight rounds of intense competition, Shota Kawano, Mitsubishi Electric Corporation, was named regional champion. Kawano will represent Japan at the IPC Hand Soldering World Championship at productronica in Munich, Germany in November. Second place went to Moe Nishiduma, Advantest Corporation, followed by Kazuya Ganeko, Mitsumine Denshi, who took third place.

“The IPC Hand Soldering Competition highlights the skills of the best hand soldering talent in the world,” said Dave Bergman, vice president, IPC standards and training. “The competition provides members of the electronics industry a chance to demonstrate their know-how to their customers as well as to champion and reward their skilled workers internally. Hand soldering competitions foster a successful work dynamic, fully compliant with stringent IPC requirements, on their manufacturing floor. We thank our sponsors, Japan Unix, JBC, Nihon Superior and SMIC for supporting this exciting event.”

For more information on upcoming IPC hand soldering competitions, visit www.ipc.org/events.

IPC Pulse Survey Shows Positive but Moderating Industry Outlook

Third-quarter 2019 results from IPC’s Pulse of the Electronics Industry global data service show that the global electronics industry continues to thrive in a positive business environment and still predicts continued growth over the next year. The results are somewhat less optimistic than in earlier quarters this year and there are some sharp contrasts between regions.

The industry’s view of the current direction of the business environment worldwide remained positive this quarter but just barely. The composite score on the current state fell to its lowest level since the Pulse survey began in mid-2017.

Most participating companies reported the current direction for sales, orders and order backlogs as moving in a positive direction but with less strength than in previous quarters. Meanwhile, while rising labor and material costs and recruiting challenges continued to affect the business environment negatively. Yet, some regional results deviated from that pattern this quarter. Ease of recruiting, which has typically had a negative impact on the current business environment, is now having a net positive impact according to participating companies in Asia. The direction of profit margins has been positive for most segments this year, but it shifted to a mildly negative factor this quarter for companies in the Americas, indicating that margins are shrinking. 

The companies’ average outlook for the next six months remains solidly positive on a global level but has weakened since the beginning of 2019. Europe is the only region reporting a net negative composite score on the industry’s six-month outlook. In the six-month outlook for Asia, only exports were rated as a negative driver this quarter, due to the trade war between China and the U.S.

The 12-month business outlook as of third quarter 2019 remains strong globally, with 87 percent of responding companies indicating a positive outlook. Only Europe reported a mixed outlook, reflecting the current uncertainty about the impact of Brexit and the region’s slowing economic growth.

Respondents comment every quarter on the trends or conditions that are driving or limiting their business growth and where they are seeing significant cost increases. Based on this quarter’s comments, economic and market demand growth is the main driver of their sales growth. Of the conditions limiting growth, the number-one driver is workforce issues, followed closely by tariffs and regulatory issues. The component shortage still gets a few mentions, but it appears to have eased. The industry’s biggest concern about rising costs is in recruiting, training and labor costs, followed closely by tariffs and trade-related costs.

The fourth-quarter 2019 survey will be online October 1 with a deadline of October 18. The confidential survey is brief and easy to answer for company executives with broad knowledge of their companies’ performance. All eligible participants who complete the survey by the deadline will receive the report on the findings. More information is at www.ipc.org/IndustryData.

North American PCB Industry Returns to Positive Growth

IPC Releases PCB Industry Results for August 2019

IPC announced today the August 2019 findings from its North American Printed Circuit Board (PCB) Statistical Program. Sales and order growth rebounded in August and the book-to-bill ratio strengthened to 1.02.

Total North American PCB shipments in August 2019 were up 0.6 percent compared to the same month last year. Year-to-date sales growth as of August remained positive at 7.4 percent. Compared to the preceding month, August shipments increased 11.4 percent.

PCB bookings in August increased 7.6 percent year-over-year, pulling year-to-date order growth up to 1.9 percent. Bookings in August were up 19.8 percent from the previous month.

“After a lack-luster summer for the North American PCB industry, the August results brought welcome news,” said Sharon Starr, IPC’s director of market research. “Sales and order growth have both returned to positive territory and orders outpaced sales, which brought the book-to-bill ratio back to the positive range after a three-month slump. Recent book-to-bill ratios indicate the probability of flattening sales growth but with some hope for positive growth rates in the next two quarters.”


Note: The January 2019 ratio has been revised since its original publication due to updated data from statistical program participants.


Note: The November 2018, January 2019 and June 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

The third-quarter 2019 edition of IPC’s North American PCB Market Report, containing detailed data from IPC’s PCB Statistical Program, will be published by mid-November. 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 Hand Soldering Competition Winner Crowned at What's New in Electronics Live 2019

IPC, in conjunction with What’s New in Electronics Live and ART-- Advanced Rework Technology Ltd., conducted the IPC Hand Soldering Competition in Warwickshire, United Kingdom, on September 18-19, 2019. Twenty competitors demonstrated their soldering skills with the hope of winning the coveted hand soldering competition crown.

Participants were tasked with building a functional electronics assembly with more than 400 components, within a 60-minute time limit. The completed assembly was judged not only on speed of completion, but on workmanship, overall functionality and compliance with IPC-A-610G Class 3 criteria. Taking first place with a cash prize of £300 and new soldering stations from JBC and Hakko was Justyna Mikolajczyk, Zettlex. Mikolajczyk, who completed a functional board in 52 minutes and 42 seconds, and earned 440 points out of a possible 445, is eligible to compete at the IPC Hand Soldering World Championship at productronica in Munich this November.

Second place went to Phillip Smith, CIL, who completed his board in 60 minutes, earning 421 points. Smith, a former UK champion in hand soldering, received a cash prize of £200.

Third place went to Przemyslaw Marzalek, MSF Technologies, who completed his board in 56 minutes, 30 seconds, earning him 405 points and a cash prize of £100. Przemyslaw was the UK Champion last year and competed for the world championship title at the World Championship held at IPC APEX EXPO in San Diego, Calif earlier this year.

“It was evident that the best hand soldering talent in the United Kingdom came to compete at What’s New in Electronics Live,” said David Bergman, IPC vice president of standards and training. “The competition was tough, but each competitor rose to the challenge. We look forward to hosting more hand soldering competitions across the globe.”

Bergman added, “IPC would like to thank hand soldering competition sponsors: JBC, Hakko, Thalès, Optilia, The Daylight Company, NCAB, Almit, Electrolube, Zestron, and ART-Advance Rework Technology Ltd. For their support.”

All 2019 regional winners will take their hand soldering skills to the IPC Hand Soldering World Championship which will be held at productronica in Munich on November 14-15. For more information on upcoming IPC hand soldering competitions, visit www.ipc.org/events.

North American PCB Industry Turnaround Shown in New IPC Report

IPC’s 2019 Annual Report on the North American PCB Industry, published last week, shows that the PCB industry in North America has turned a corner. For the first time in five years, domestic PCB production grew in 2018. North America’s PCB market also grew last year by nearly eight percent, solidifying the turnaround that began in 2017.

Other key findings include the breakdown of vertical markets for PCBs, showing that PCBs for military and aerospace, and medical devices and instrumentation markets make up the lion’s share of both rigid PCB and flexible circuit markets in North America.

The report contains current estimates of PCB domestic production value from Prismark Partners and shows historical trends in the size and growth of PCB markets. Data from IPC’s North American PCB Statistical Program cover 2018 sales and order growth by board type and company size tier, vertical market sizes, prototype sales growth and percentages of PCBs with special technologies including RF, metal core and embedded components. Other industry data include revenue per employee, capacity utilization, production capacity expansion and planned 2019 expansion, inventory turns and lead times.

PCB fabricators use this annual report to see what product types are gaining or declining in the marketplace, update estimates of their market share and compare their business performance to industry averages. For PCB industry suppliers and customers, the PCB market is a useful gauge of trends and growth in electronics manufacturing.

The 2019 Annual Report on the North American PCB Industry, priced at $450 for IPC members and $900 for nonmembers, is available for download in IPC’s online store. Information about IPC market research reports and services is at www.ipc.org/market-research-reports.

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