New U.S. Tariffs on Mexican Imports Would Harm U.S. Electronics Companies and Their Customers

IPC, the global trade association for the electronics industry, supports the Trump administration’s efforts to pass the U.S.-Mexico-Canada Agreement (USCMA) but believes the imposition of new tariffs on Mexican imports to address immigration issues at the U.S.-Mexico border will harm U.S. electronics companies and their customers.  

“New and escalating tariffs would make it harder and more costly for electronics companies and their customers to operate in the United States and add to already-heightened economic uncertainties,” said IPC President and CEO John Mitchell.  

“Placing tariffs on Mexican imports would essentially be a new tax on U.S. companies that have invested in North American supply chains and would weaken their ability to compete globally in an industry notorious for thin margins,” Mitchell added.

According to a new report commissioned by IPC to examine the proposed U.S.-Mexico-Canada Agreement (USCMA), U.S. Electronics manufacturers and their customers have developed extensive North American supply chains over the last 25 years. These supply chains, which leverage the strengths of all three countries, have allowed U.S. manufacturers to grow domestically and better compete internationally.

Among its findings, IPC’s report noted:

  • Bilateral trade between the United States and its North American counterparts is now six times larger than it was prior to NAFTA.
  • The total value of U.S. electronics trade with Canada and Mexico was $155.5 billion in 2017.
  • Electronics are a large share of U.S. exports to Mexico and Canada: 31 percent of all U.S. Exports of manufactured goods, natural resources and energy exports to Mexico, and 18 percent of such exports to Canada.
  • Within the computer and electronics product manufacturing sector, inter-firm trade between the U.S. and Mexico is significant. Approximately 78 percent of all electronics imported from Mexico and 47 percent of all electronics exported to Mexico are between parent companies and their affiliates.
  • Mexico imports 34 percent of U.S. printed circuit board production—larger than the next four largest markets combined.

IPC also believes the proposed tariffs would complicate efforts to win approval for USMCA in Congress.

North American PCB Sales and Orders Continue to Outpace 2018

IPC Releases PCB Industry Results for April 2019

IPC announced today the April 2019 findings from its North American Printed Circuit Board (PCB) Statistical Program. Year-over-year growth in April was positive for sales and orders, and the book-to-bill ratio strengthened to 1.02.

Total North American PCB shipments in April 2019 were up 6.6 percent compared to the same month last year. Year-to-date sales growth as of April was 14.0 percent. Compared to the preceding month, April shipments decreased 23.1 percent.

PCB bookings in April increased 9.4 percent year-over-year, bringing year-to-date order growth up to 4.0 percent. Bookings in April were down 14.0 percent from the previous month.

“A return to solid year-over-year order growth for the North American PCB industry in April moved the book-to-bill ratio from parity (1.00) to 1.02,” said Sharon Starr, IPC’s director of market research. “The ratio has been at or above parity for the last 28 months, which is an unusually long stretch for this leading indicator. Recent ratios indicate continued but slower growth in the coming months.” She added, “April’s negative month-to-month growth rates are not a cause for concern, as they reflect normal seasonal patterns.”


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


Note: The November 2018 and January 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 second-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-August. 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's Validation Services Program Awards MarVac Assemblies PC the Qualified Manufacturers Listing (QML)

IPC's Validation Services Program has awarded an IPC/WHMA-A-620 Qualified Manufacturers Listing (QML) Class 2, to MarVac Assemblies, a value-added division of Marsh Electronics, Inc., located in Milwaukee, Wis. Following an initial audit by IPC, MarVac Assemblies becomes one of the IPC trusted sources and suppliers meeting the stringent requirements of the Qualified Manufacturing Listing (QML) based on one of IPC's foremost standards: IPC/WHMA-A-620, Requirements and Acceptance for Cable and Wire Harness Assemblies.

MarVac Assemblies contacted IPC to review its manufacturing processes using the IPC Standard Gap Analysis (SGA) program in December 2018. Through the SGA program, the wire assembly manufacturer looked to improve its production methods before moving to the IPC Validation Services QML recognition program.

During the IPC Validation Services QML audit in May 2019, MarVac Assemblies met or exceeded the requirements for the electronics industry’s rigorous classification, Class 2, which is intended for dedicated service electronics products. The company is now listed and recognized as an IPC trusted source capable of manufacturing in accordance with industry best practices.

“MarVac Assemblies is excited to have achieved the QML recognition from IPC,” said Steve Banovich, MarVac Assemblies manager. “Beginning with the IPC SGA, we looked at going through the validation process not only as another way to bring value to our current customers, but that same value to our new customers. IPC Validation Services has helped us achieve the value our customers expect to see.”

IPC's Validation Services QPL/QML Program was developed to promote supply chain verification and recognition. It also provides auditing and certification of electronics companies' products, and identifies processes which conform to IPC standards.

"Different from other audit programs, IPC's Validation Services Programs uniquely provides technical and in-depth assessments of products and processes in accordance with IPC standards," said Randy Cherry, IPC director of Validation Services. "We are pleased to especially recognize MarVac Assemblies for becoming a member of IPC's network of trusted QML suppliers."                                                                                

For more information about IPC's Validation Services QPL/QML Program, visit www.ipcvalidation.org or contact Randy Cherry at RandyCherry@ipc.org or +1 847-597-2806.   

Tempo Automation Earns IPC Qualified Manufacturers Listing (QML)

IPC's Validation Services Program has awarded an IPC-A-610 and IPC J-STD-001 Qualified Manufacturers Listings (QML) Class 3 and IPC J-STD-001 Space QML, to Tempo Automation for its location in San Francisco, Calif.

Following an initial audit by IPC, Tempo Automation becomes one of the trusted sources and suppliers meeting the stringent requirements of the Qualified Manufacturing Listing (QML) based on two of IPC's foremost standards: IPC-A-610, Acceptability of Electronic Assemblies, and IPC J-STD-001, Requirements for Soldered Electrical and Electronic Assemblies. Tempo Automation also obtained the QML for IPC J-STD-001GS, Space and Military Applications Electronic Hardware Addendum to IPC J-STD-001G Requirements for Soldered Electrical and Electronic Assemblies.

Tempo Automation is known for its rapid delivery and high-quality built products. During the IPC Validation Services QML audit, Tempo Automation met or exceeded the requirements for the electronics industry’s most rigorous classification, Class 3, which is intended for high-performance electronics assemblies. The company is now listed and recognized as an IPC trusted source capable of manufacturing in accordance with industry best practices.

“Tempo Automation utilizes the IPC standards as the foundation for building a world-class manufacturing company,” said Dan Radler, director of factory technology at Tempo Automation. “Those industry standards help us by framing internally a common understanding of quality requirements with our customers and vendors.  IPC Validation Services has been invaluable in that formation and to authenticate our quality excellence claims through their certification program.” 

IPC's Validation Services QPL/QML Program was developed to promote supply chain verification and recognition. It also provides auditing and certification of electronics companies' products, and identifies processes which conform to IPC standards.

"Different from other audit programs, IPC's Validation Services Programs uniquely provides technical and in-depth assessments of products and processes in accordance with IPC standards," said Randy Cherry, IPC director of Validation Services. "We are pleased to especially recognize Tempo Automation for becoming a member of IPC's network of trusted QML suppliers." 

For more information about IPC's Validation Services QPL/QML Program, visit www.ipcvalidation.org or contact Randy Cherry at RandyCherry@ipc.org or +1 847-597-2806.   

Electronics Industry Endorses U.S.-Mexico-Canada Pact; Leaders Call on U.S. Government to Promote Pro-Manufacturing Policies

Top executives from electronics companies across the United States are in Washington, D.C., this week to endorse the proposed U.S.-Mexico-Canada Trade Agreement (USMCA) and call on the Trump Administration and Congress to support policies that will drive advanced manufacturing.

IPC – Association Connecting Electronics Industries®, which represents more than 5,300 member facilities across the $2 trillion electronics supply chain, is hosting its annual U.S. advocacy event, IMPACT Washington, D.C.

In a newly released report, commissioned by IPC and written by economist Shawn DuBravac, the group says it believes the USMCA is a positive step for the electronics sector and should be approved by the U.S. Congress this year.

“Many of our members have deep investments and thousands of employees in the United States, Mexico and Canada,” said IPC President and CEO John Mitchell. “Building a stronger U.S. electronics industry will depend in no small measure on building a stronger North American supply chain. That, in turn, will improve the region’s stature as a bastion of strength, stability, and jobs creation in an uncertain world.”

The report notes the total value of U.S. electronics trade with Canada and Mexico was $155.5 billion in 2017. Electronics exports are 31 percent of all U.S. exports of manufactured goods, natural resources and energy to Mexico, and 18 percent of all U.S. exports of manufactured goods, natural resources and energy exports to Canada.

Beyond the underlying economics, several specific provisions of USMCA would benefit the industry, including the inclusion of chapters on small and medium-sized enterprises, digital services, and intellectual property protection. On the other hand, IPC is concerned about the sunset clause and proposed changes in regional content requirements for automobiles, both of which create uncertainties.

The IPC member-company executives are meeting today with Daniel Watson, the Deputy Assistant U.S. Trade Representative for North America and one of the chief negotiators for the USMCA, to express the industry’s support. The group will meet tomorrow with senior staff of the Senate Finance Committee and the House Ways and Means Committee, both of which oversee trade policy.   

In addition to advocating for the USMCA, the C-suite executives are meeting with leaders in Congress and the Executive Branch to discuss other issues including defense electronics, EPA regulations, and workforce education and training. IPC members will meet with 20 congressional offices; Eric Ueland, Deputy Director of the White House Domestic Policy Council; Mike Molnar, Director of the Office of Advanced Manufacturing (OAM) at the National Institute of Standards and Technology (NIST); Henry Darwin, Acting Deputy Administrator of the U.S. Environmental Protection Agency (EPA); and Scott Stump, Assistant Secretary for Technical, Career and Adult Education at the U.S. Department of Education.  

Participating member companies include Calumet Electronics Corp. of Calumet, Mich.; Chemcut Corporation of State College, Penn.; Eagle Circuits of Dallas, Tex., Juki Automation Systems, Inc. Of Fremont, Calif.; Heller Industries Inc. of Florham, N.J.; Lockheed Martin of Orlando, Fla.; Summit Interconnect of Anaheim, Calif.; STI Electronics of Madison, Ala.; TTM Technologies of Sterling, Va.; Uyemura International Corporation of Ontario, Calif.; VirTex Enterprises of Austin, Tex.; and Zentech Manufacturing of Windsor Mill, Md.

More information on IMPACT Washington, D.C. can be found at www.ipc.org/IMPACT-2019. For live updates, follow Chris Mitchell on Twitter: @Cmitchell_IPC. Executives from IPC and several member companies are available for interviews. 

Fast Facts About the Electronics Industry

  • Electronics are at the heart of almost all industries today, from aerospace/military to automotive, information technology, telecom, manufacturing, retail, and healthcare.
  • About 80 percent of IPC members are small- and medium-sized businesses, but some are large household names.
  • The sector employs more than 2 million Americans in well-paid jobs.

IPC Welcomes New Senior Director of Sales

IPC -- Association Connecting Electronics Industries® announces the addition of Michael Stone as senior director of sales to its staff at IPC headquarters in Bannockburn (Chicago), Ill.

As IPC’s senior director of sales, Stone is responsible for managing IPC’s sales efforts and growth goals. Essential functions of his role include planning, reporting, sales process optimization, sales training, sales program implementation, and recruiting and selection of IPC’s sales team talent.

A seasoned leader with more than 25 years of experience in sales management, account development and building highly effective sales teams, Stone was most recently vice president, non-profit sales at Liturgical Publications Inc. where he was responsible for leading all facets of the non-profit sales department to promote revenue growth and account level profitability.

“Mike is a passionate sales leader who has built and developed highly effective sales teams during the course of his career,” said Brian Knier, IPC vice president of member success and chief marketing officer. “Mike has embraced the successful sales leader philosophy of clearly understanding his organization’s mission, and dedication to providing the exceptional customer value with every interaction. We are thrilled to welcome Mike to the IPC team.”    

Stone can be reached at MikeStone@ipc.org or + 1 847-597-2866.

IPC and ITI to Host Conference on Critical and Emerging Environmental Product Requirements

IPC – Association Connecting Electronics Industries® and the Information Technology Industry Council (ITI) will host a conference series on “Critical and Emerging Environmental Product Requirements” in Boston, the Chicago area and San Jose on June 3, 5, and 7, respectively. The series will feature well-known United Kingdom (UK) regulators Carl Magness, product safety enforcement team leader, and Paul Tennant, product safety enforcement manager, both within the UK Office of Business, Energy and Industrial Strategy (BEIS), and Giuseppina Luvara, a policy officer within the European Commission’s Directorate General of Environment.

Magness and Tennant, who oversee enforcement of European Union (EU) regulations affecting the electronics industry, will provide an update on the EU’s Restriction of Hazardous Substances (RoHS) Directive exemptions, implementation and enforcement, new chemicals, and more. Luvara, an expert on Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) legislation and responsible for REACH review coordination, will cover EU chemicals management issues including REACH review, implementation, enforcement, and REACH/RoHS interface. She will also discuss new chemicals that the REACH regulation is reviewing, including phthalates and bisphenol A.   

“Global environmental compliance requirements constantly evolve, which can make adherence extremely difficult for companies,” said Chris Cleet, ITI’s senior director, environment and sustainability. “Misunderstanding these changes and their effect could have a disastrous impact for business. ITI and IPC’s conference will provide the information compliance professionals and officers need to be up to date with legal, regulatory, and customer requirements.”

The conference will include a U.S. Regulatory wrap-up by Cleet and presentations on Asia environmental issues by Alexa Lee, ITI’s senior manager of policy at ITI, at the Boston and Chicago-area events, and by Jennifer McLaughlin, Oracle’s product environmental compliance manager, at the San Jose event.

For detailed information on the agenda, specific speakers and the dates and locations of their participation, or to register for the “ITI and IPC Conference on Critical and Emerging Environmental Product Requirements,” visit www.ipc.org/ITI-IPC-Conference-2019.

North American PCB Sales Growth Stays Strong, Order Growth Slows

IPC Releases PCB Industry Results for March 2019

IPC announced today the March 2019 findings from its North American Printed Circuit Board (PCB) Statistical Program. Year-over-year growth in March was strong for sales but slipped into negative territory for orders, while the book-to-bill ratio retreated to parity at 1.00.

Total North American PCB shipments in March 2019 were up 19.1 percent compared to the same month last year. Year-to-date sales growth as of March was 16.4 percent. Compared to the preceding month, March shipments jumped 32.9 percent.

PCB bookings in March decreased 0.9 percent year-over-year, bringing year-to-date order growth down to a positive 2.4 percent. Bookings in March were up 10.1 percent from the previous month.

“Strong sales for the North American PCB industry in March, combined with lackluster order growth, brought the book-to-bill ratio down to 1.00, its lowest level in more than two years,” said Sharon Starr, IPC’s director of market research. “Year-over-year sales growth has outpaced order growth for the past 10 months, indicating the likelihood of slowing sales growth in the coming months.”


Note: The March 2018 and January 2019 ratios have been revised since their original publication due to updated data from statistical program participants.


Note: The March 2018, November 2018 and January 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 first-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-May. 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 Assembly Quality Benchmark Survey Open to Participants Worldwide

The 2019 Study of Quality Benchmarks for Electronics Assembly, one of IPC’s most popular annual studies, is currently underway. The survey is online and available in both English and Mandarin Chinese. The deadline for participation is May 17.

This confidential survey is open to all companies that do electronics assembly worldwide, including OEMs and contract electronics manufacturing service (EMS) companies. Participants who complete the survey will receive the report on the findings at no cost.

The study covers the industry's most widely used and important quality measurements, including yields, defect rates, cost of poor quality, rework, test and inspection methods used, inventory accuracy, customer returns, supplier performance, certifications and more. Companies use the results to benchmark their operations to world-class quality measurements.

The report will show industry averages and percentile data by product type, region and company size tier. Product types covered in the survey include electronic end-products and systems, rigid PCBs, flexible circuits and rigid flex, rigid backplanes, molded boards, MCM-C-L-D, mechanical assembly, cable and wire harnesses, and discrete wiring terminals and connectors. The report will be published in English and Chinese in August of this year.

IPC protects the confidentiality of participants’ data using a secure survey platform and server. IPC publishes only aggregate results and does not share any company-specific information. The survey asks for the participants’ IPC company ID number, which is used to provide additional data security.

Participants can access the survey in English at 2019QualityBenchmarkSurvey and in Chinese at 2019年IPC电子组装质量标杆调研项目. For assistance or to obtain the required company ID number, participants may contact IPC at +1 847-597-2868 or MarketResearch@ipc.org.

IPC-4101 Now Includes Validation Services Qualified Products List Requirements for Materials Specification Sheets

The IPC Technical Activities Executive Committee (TAEC) and the IPC Board of Directors approved by vote, the introduction of a Qualified Products List (QPL) requirement within IPC-4101, Specification for Base Materials for Rigid and Multilayer Printed Boards. The intent of the new requirement is to enhance supply chain verification of materials specification sheets, minimize nonverified submissions of specification sheets and give support to the committee evaluations of the new materials specification sheets.

Prior to submitting new material specification sheets, companies will be required to receive the IPC Validation Services Qualified Products List (QPL) certification. The QPL will ensure that the company is meeting the stringent requirements of IPC-4101 and delivering materials based on those requirements.

Companies who have submitted materials specification sheets for the proposed Amendment 1 to the current IPC-4101E, will be required to obtain the required QPL listing. The material specification sheets will not be accepted for review until the QPL listing is met.

IPC's Validations Services QPL/QML Program was developed to promote supply chain verification. It also provides auditing and certification of electronics companies' products and identifies processes which conform to IPC standards.

"IPC realizes that many companies use the inclusion of their products specification sheets in the IPC-4101 standard to provide some validity of their products in the marketplace," said Dave Bergman, IPC vice president standards and technology. "At the same time, a significant amount of IPC resources and volunteer time are used in the standards development process in adding these materials specification sheets to the standard. The Validation Services QPL program for IPC-4101 has proven to be of great value to the marketplace and adding material specification sheets will further enhance the program."

For more information about IPC's Validation Services QPL/QML Program, visit www.ipcvalidation.org or contact Randy Cherry at RandyCherry@ipc.org or +1-847-597-2806.  

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