Electronics Industry Sentiment Dips in December

IPC releases December 2024 Global Sentiment of the Electronics Manufacturing Supply Chain report

The electronics industry faced a dip in sentiment this December, as the Demand Index declined 1.8 percent according to IPC’s December Sentiment of the Global Electronics Manufacturing Supply Chain Report. It remained below 100 for the fourth consecutive month, signaling continued contraction. 

 

Cost pressures continue to challenge operations. The Labor Costs Index climbed two percentage points from its all-time low, while the Material Costs Index dropped four percentage points. The majority of firms continue to report ongoing increases in both labor and material costs, straining operations. 

 

In response to special questions regarding the electronics industry’s concern with proposed tariffs, trade concerns loom large for 2025. A majority (68 percent) of electronics manufacturers and suppliers express at least a moderate concern about the impact of potential tariffs on the electronics industry. A significant portion (38 percent) plan to pass the full cost increase of any tariffs on to their customers. Another 19 percent intend to share the burden, passing along past of the expense while absorbing some internally. Only a small majority (4 percent) expect to absorb the entire cost without raising prices. “These strategies suggest that most firms view transferring at least a portion of tariff-related costs to end-users as unavoidable,” said Shawn DuBravac, Ph.D., IPC chief economist and report author.

 

Additional survey data show:

  • North American electronics manufacturers, along with those operating globally, are experiencing rising backlogs more so than European manufacturers.
  • Material costs are declining more among electronics manufacturers in Europe and APAC vs. firms in North America. 
  • 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 November 15 and November 30, 2024.

Read the full report.

North American EMS Industry Up 10.6 Percent in November

IPC releases EMS industry results for November 2024

IPC announced today the November 2024 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.18.

Total North American EMS shipments in November 2024 were up 10.6 percent compared to the same month last year. Compared to the preceding month, November shipments were up 4.0 percent.

EMS bookings in November increased 8.1 percent year-over-year and decreased 2.7 percent from the previous month.

“EMS order volumes have slowed in recent months, but the year-to-date trend remains steady. This slowdown could signal a short-term pause as businesses wait for better clarity following the inauguration,” said Shawn DuBravac, IPC’s chief economist. 

November 2024 EMS book to bill ratio chart

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. 

 

North American PCB Industry Sales Up 4.7 Percent in November

IPC releases PCB industry results for November 2024

IPC announced today the November 2024 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.15.

Total North American PCB shipments in November 2024 were up 4.7 percent compared to the same month last year. Compared to the preceding month, November shipments were down 1.4 percent.

PCB bookings in November were up 29.1 percent compared to the same month last year. November bookings were down 13.7 percent compared to the preceding month.

“A jump in November orders pushed the PCB book-to-bill to the highest level in over two years. All eyes are now on whether this momentum carries forward into the new year,” said Shawn DuBravac, IPC’s chief economist. 

November 2024 PCB book to bill ratio chart 1
November 2024 PCB book to bill ratio chart 2

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 Canda. IPC publishes the PCB book-to-bill ratio by the end of each month. 

 

 

 

IPC/WHMA Launches Groundbreaking Online Course on Wire Harness Design

IPC/WHMA is excited to announce the launch of its new online instructor-led training course, "Introduction to Wire Harness Design I," available now through the IPC EDGE Learning Management System. This two-week course provides advanced training in wire harness design, an essential skill in today's competitive wire harness assembly industry.

 

Led by Didem Üstün, a seasoned IPC/WHMA-certified expert with over a decade of industry experience, the course offers participants a deep dive into the complexities of designing, assembling, and troubleshooting wire harnesses. Üstün's expert guidance, combined with a robust curriculum that includes foundational concepts and practical, hands-on techniques, ensures that learners acquire the knowledge and skills they need to excel.

 

Course Details:

  • Duration: 2 weeks

  • Format: Online, featuring live sessions twice weekly, recorded for on-demand recorded sessions.

Learning and Performance Objectives:

  • Master fundamental and advanced aspects of wire harness design, including materials selection and troubleshooting.

  • Gain practical experience through project-based learning that mimics real-world challenges.

Who Should Enroll:

  • Designers new to the field of wire harness technology.

  • Operators preparing to work with wire harness designs.

  • Industry professionals are seeking to deepen their cable and wire harness assembly expertise.

Carlos Plaza, IPC senior director of education development said, "This program is specifically designed to address the growing demand for skilled wire harness designers who can innovate and excel in an evolving industry."

Benefits of Enrolling:

  • Learn from an industry leader and become proficient in the latest industry standards, including IPC/WHMA-A-620.

  • Enhance career opportunities and readiness for industry-specific challenges.

 

Enrollment is now open, and spots are limited. To register or find more information about "Introduction to Wire Harness Design I," visit IPC's course page.

Explore our latest blog post on IPC's website to learn more about the exciting new Wire Harness Design course.

IPC Hand Soldering Competition 2025 Regional Qualification - France

Date
- (3:00 - 9:30am CDT)

Join the Regional Qualification France for the IPC Hand Soldering Competition (HSC) at Global Industrie Lyon on 11-13 March 2025.

Skilled soldering experts (F/M) will compete for 60 minutes on a complex circuit board assembly to win the 2025 National title, earn a cash prize, and compete for a coveted spot at the IPC Hand Soldering World Championship later this year.

Competition for Professionals

The professional competitors will be judged by IPC Master Instructors (MIT) on soldering a complex printed circuit board with a maximum time of 60 minutes under IPC-A-610 Class 3 criteria. Additional criteria will include the quality of the results achieved and of the assembly process, the overall electrical functionality, and the speed at which the assembly was produced.

Prizes for Professionals

The professionals will receive cash prizes: the winner and two runners-up.

  • 1st place – 300 €
  • 2nd place – 200 €
  • 3rd place – 100 €

IPC Hand Soldering World Championship: The winner will be invited by IPC (all expenses covered by IPC) to compete in the HSC World Final in November at productronica tradeshow in Munich, Germany.

Hand Soldering Best Company Team Award: This year again, nominate a team to win the Hand Soldering Best Company Team Award. For any company enlisting 2 or 3 competitors, the highest combined scores of competitors from the same company will determine which company will receive the HSC Best Company Team Award.

Registration is free of charge.

You do not need to be an IPC member to take part.

You do not need to be IPC-certified to take part.

How to register?

Fill in the registration form and book your competition slot.

The registration deadline is Friday 7 March 2025.

You will receive a confirmation email specifying your date and time to compete.

For more information, please get in touch with Philippe Léonard, IPC Europe director (PhilippeLeonard@ipc.org).

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