As revealed this week by an annual survey conducted by in4ma and sponsored by IPC, the electronics manufacturing services (EMS) industry in Europe experienced negative 14 percent growth in printed circuit board assembly (PCBA) production in 2024.

“While it was a very challenging year for the industry, Dieter Weiss, founder and president of in4ma, and lead architect of the survey, was able to motivate 427 companies to contribute data to this year’s survey, which was a record level of participation and represented a doubling of overall participants and a tripling in non-DACH participants in just three years,” stated Sanjay Huprikar, president, Europe and South Asia operations.” 

Key industry takeaways and extrapolations from this survey and analysis included:

• The top 136 companies made up only 7 percent of the overall companies, but were responsible for 81 percent of the European market

• 50 percent of all the EMS sites in Europe were in Germany, France, and the United Kingdom

• Nearly 67 percent of the participating companies experienced lower revenues in 2024 vs. 2023

• Germany’s EMS industry experienced negative 18 percent growth overall driven mainly by the automotive, industrial, and measuring and instrumentation electronics verticals, but also showed positive double-digit growth in the aerospace, agriculture, and household electronics verticals

• On average, headcount across the European EMS industry was down two percent

• Overall prognosis for 2025 is that the European EMS market could grow by three percent 

The 88-page report contains country specific detailed data and metrics on order backlog, inventory, revenue per head, export ratios, and much more. Weiss plans to formally share his findings and analysis in detail at two live presentations in June:

• IPC UK EMS Executives Meeting – London, UK – June 12

• in4ma EMS & PCB Forum – Bonn, Germany – June 26

The full report “Annual Survey of the European EMS Industry 2025” authored by Dieter G. Weiss and Dr. Mareike Haass can be purchased directly from in4ma at www.in4ma.de. Contact Weiss or Dr. Haass at weiss@in4ma.de or haass@in4ma.de for additional information. 

IPC, the global electronics association, fully champions the Pan-European EMS industry by focusing on standards, education, training and certification, advocacy, technology solutions, industry intelligence, and networking events. You can learn more about how to participate in these initiatives by contacting Philippe Leonard, senior director, IPC Europe, at philippeleonard@ipc.org.

Orders, capacity utilization, and backlogs all increased in the past month, pushing electronics industry demand higher according to IPC’s February Sentiment of the Global Electronics Manufacturing Supply Chain Report. The Demand Index is at its highest level since May 2024. Profit margins remain under pressure, but the Profit Margin Index has risen for the second consecutive month.

Though labor and material costs continue to rise and labor challenges persist as labor markets remain tight, the outlook for shipments, orders, backlogs and capacity utilization is expected to improve, reflecting strong optimism. 

In response to special questions regarding companies pulling forward shipments as a result of the potential risk of tariffs, about 65 percent of manufacturers report they are not pulling forward shipments due to tariff risks, though 18 percent are adjusting less than 10 percent of shipments. “The majority of electronics manufacturers are maintaining their current shipment schedules, opting not to expedite deliveries despite potential tariff implications,” said Shawn DuBravac, Ph.D., IPC chief economist and report author. When asked about shipping surcharges 72 percent of respondents stated they have not experienced shipping surcharges beyond expectations, and 70 percent do not anticipate new surcharges in the next 60 days.

Additional survey data show:

• Nearly three-fifths (56 percent) of electronics manufacturers are currently experiencing rising labor costs, with half (50 percent) reporting rising material costs.
• Labor and material costs remain elevated across all regions, with the highest diffusion index in North America.
• The ease of recruiting skilled labor remains a persistent challenge across all markets and has worsened in the past month.

These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between January 16 and January 31, 2025.

Read the full report.

IPC announced today the January 2025 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.24.

Total North American PCB shipments in January 2025 were up 19.9 percent compared to the same month last year. Compared to the preceding month, January shipments were up 10.1 percent.

PCB bookings in January were up 44.1 percent compared to the same month last year. January bookings were up 1.1 percent compared to the preceding month.

“Sustained booking momentum into the new year signals strong underlying demand, reinforcing confidence in demand,” said Shawn DuBravac, Ph.D., IPC 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 January 2025 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.27.

Total North American EMS shipments in January 2025 were down 2.4 percent compared to the same month last year. Compared to the preceding month, January shipments were down 1.8 percent.

EMS bookings in January decreased 1.2 percent year-over-year and decreased 15.6 percent from the previous month.

“January’s performance reflects a stable demand environment,” said Shawn DuBravac, Ph.D., IPC chief economist. “We expect the broader trend to remain positive in the coming months, with key indicators pointing toward healthy demand.”

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.