Demand in the electronics industry recovered to 100 in December, marking the threshold between contraction and expansion after four consecutive months below this level according to IPC’s January Sentiment of the Global Electronics Manufacturing Supply Chain Report. Of the four demand components, the Backlog Index remained below 100 and was the only component unchanged over the past month. The New Orders Index rose by four points to 102, moving marginally into expansion territory. Similarly, the Shipment Index increased by four points, reflecting broader improvements in volume indicators.

Cost pressures continue to challenge operations. The Labor Costs Index held steady this month, while the Material Costs Index climbed three points, recovering slightly from its all-time low. However, aggregated cost indicators reached a four-month high, signaling persistent cost pressures on operations.

In response to special questions regarding companies’ current work from home practices, minimal changes are expected in 2025 work arrangements. Factory floor policies remain rooted in traditional on-site requirements, reflecting the operational challenges and technical demands of these roles. Europe stands out with the largest flexibility increase, as hybrid arrangements are projected to grow by 5 percent.

“While 2025 work-from-home policies suggest incremental shifts toward flexibility, particularly in APAC and Europe, these changes are more pronounced for non-factory employees,” said Shawn DuBravac, Ph.D., IPC chief economist and report author. “For factory floor employees, minor increases in hybrid work are anticipated, but on-site roles remain the overwhelming standard, underscoring the rigidity of these positions,” Dr. DuBravac added. 

Additional survey data show:

• Half of electronics manufacturers are currently experiencing rising labor (52 percent) and material (51 percent) costs.
• European electronics manufacturers, along with those operating globally, anticipate a decline in material costs over the next six months more so when compared to North American electronics manufacturers.
• Over the next six months, electronics manufacturers expect labor and material costs to remain high, with ease of recruitment likely to remain challenging. 

These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between December 11 and December 31, 2024.

Read the full report.

IPC announced today the December 2024 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.19.

Total North American PCB shipments in December 2024 were down 0.3 percent compared to the same month last year. Compared to the preceding month, December shipments were down 3.9 percent.

PCB bookings in December were up 59.6 percent compared to the same month last year. December bookings were up 6.2 percent compared to the preceding month.

"PCB orders jumped in December, landing in the top one percent of orders relative to shipments. This uptick is largely due to orders being pulled forward amidst ongoing tariff uncertainties,” said Shawn DuBravac, Ph.D., IPC’s chief economist. 

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.

IPC announced today the December 2024 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.26.

Total North American EMS shipments in December 2024 were down 7.8 percent compared to the same month last year. Compared to the preceding month, December shipments were down 8.3 percent.

EMS bookings in December increased 28 percent year-over-year and increased 16.9 percent from the previous month.

“Strong bookings in December elevated the North American EMS book-to-bill ratio. While shipments are expected to catch up, this surge in orders was likely influenced by tariff uncertainties,” said Shawn DuBravac, Ph.D., IPC’s chief economist. 

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.