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By Kelly Scanlon, IPC lead sustainability strategist
Many company executives, whether in the electronics industry or other manufacturing industry sectors, have sustainability at the top of their minds and agendas. Defining what it means for their company to be sustainable and setting out and achieving goals related to sustainability has become a critical part of CEO leadership actions.
Recently, John Mitchell, IPC’s President and CEO, asked executives Greg Maxwell, Northrop Grumman Corporation, and Tom Edman, TTM Technologies, about how they prioritize sustainability in their companies. In a series of videos, we learn about their challenges—and solutions—for issues such as reporting and disclosure of energy, water, and chemical data, workforce development and retention, regulatory obligations, supplier demands, and customer needs. It’s not a quest for what to do but how to do it.
These include evaluating the energy needs of their facilities, ensuring workers are keeping up with regulatory obligations, and meeting their customers’ needs while also meeting their own needs.
Hearing from executive decision makers about their successes, their challenges, their ambitions, and their worries provides all of us – including engineers and manufacturing line workers – with a path forward and a set of best practices that we can learn from so that we can all build electronics better.
VIDEO LINKS:
IPC wants to help you broadcast your best practices and tell your stories about how you got to where you are today. Please let us know what you think about the videos in the comment section.
IPC just released another video in its series of short explainers supporting its chips-related advocacy campaign – this one focuses on the need to take a complete “silicon to systems” approach to investing in Europe’s electronics industry.
With fresh animation and graphics, the video takes a common sense approach to explaining that electronic systems are at the heart of many critical products and services from cars to computers, phones, and medical devices. With so much at stake, focusing on only one part of the electronic system – semiconductor chips – isn’t enough to ensure Europe’s innovation, resilience, and security. Instead, the EU should take a comprehensive, “silicon-to-systems” approach to the European Chips Act and to its digital and green transitions, the video says.
In Brussels and around the world, IPC is urging policymakers to take a broad approach to electronics manufacturing, including investing in R&D and manufacturing capacity for printed circuit boards (PCBs), IC substrates, and advanced packaging technology. IPC has called for establishing a continent-wide Electronics Manufacturing Strategy; enacting tax incentives for purchases of domestic PCBs; and developing more skilled workers and career pathways in electronics in the EU.
Earlier this year, IPC released a U.S.-focused video focused on the need for a “silicon to systems” approach to electronics manufacturing. IPC is promoting the videos through its social media accounts, newsletters, magazines, and other channels. IPC members and partners are invited to help IPC spread the word by sharing the U.S. or European video with professional networks, partners and elected officials.
IPC is teaming up with the U.S. Partnership for Assured Electronics (USPAE) to offer an expert-led discussion on the legal risks related to compliance with the Cybersecurity Maturity Model Certification (CMMC). This discussion will be held on November 19, 2024 at 1pm ET and will be led by Eric Crusius, a Partner at Holland & Knight.
Earlier this month, the DoD published its final rule on CMMC. CMMC is designed to ensure that federal contractors are taking appropriate safeguards on their nonfederal systems to protect sensitive unclassified information. In complying with CMMC, federal contractors and subcontractors face risk under the False Claims Act (FCA). The FCA can be used to pursue cybersecurity-related fraud by entities that do business with the DoD and do not comply with the CMMC standards.
Please note that this meeting is for IPC members and USPAE alliance partners only. Moreover, this event is intended for DoD contractors and subcontractors. If you have questions about the event, please contact Jim Will at JimWill@uspae.org.
Industry sentiment in the electronics sector improved marginally in October after a sharp decline in September. Improvements in demand and costs combined to help lift sentiment according to IPC’s October Sentiment of the Global Electronics Manufacturing Supply Chain Report.
The Demand Index rose 1.3 percent in October, but demand sentiment remains muted for the second consecutive month. The Backlog Index, already in contraction, dropped another two points to its lowest level in a year. Capacity Utilization fell into contractionary territory, while the New Orders Index remained there for the second consecutive month. The Shipment Index rose from an all-time low last month, bouncing back into expansionary territory.
In response to special questions on interest rate cuts in Europe and the United States, electronics manufacturers expect interest rate cuts in Europe and the United States to have a moderate to minimal impact on the industry overall, with the greatest effect likely on capital investment, financing, and sales growth.
According to Shawn DuBravac, IPC chief economist and report author, industry outlook remains positive this month despite cooling demand sentiment. “Despite some easing in cost pressures, the outlook for costs actually increased in October as more manufacturers reported an expectation for higher labor costs in the coming months.”
Additional survey data show:
These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between September 16 and September 30, 2024.
Read the full report.
In the face of numerous challenges, the global economy has demonstrated remarkable resilience, especially in regions like South Asia and the United States, where growth has exceeded expectations. As we look to 2025, vulnerabilities remain. Central banks are easing rates, yet the pace varies significantly across regions, casting uncertainty over economic activity. Geopolitical tensions and persistent inflationary pressures are also key concerns that could influence monetary policy and impact markets.
The global growth landscape continues to present a mixed outlook, with downside risks amid lingering inflation pressure and geopolitical uncertainties, such as escalating tensions in Ukraine. In Europe, certain economies continue to face headwinds, and in Asia, China faces its own challenges. However, opportunities for growth in the electronics industry persist as sectors like defense and renewable energy remain resilient in the face of broader manufacturing slowdowns.
Join IPC on November 19 at 4:00 pm EST for a free live event, Economic Outlook 2025, led by IPC Chief Economist Shawn DuBravac. This session is an opportunity to stay informed about the latest economic trends and prepare for the coming year with expert insights.
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IPC announced today the September 2024 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.08.
Total North American PCB shipments in September 2024 were down 24.1 percent compared to the same month last year. Compared to the preceding month, September shipments were down 23.8 percent.
PCB bookings in September were down 4.4 percent compared to the same month last year. September bookings were down 2.8 percent compared to the preceding month.
“The North American PCB book-to-bill rose notably in September, but this rise masks overall weakness in the sector. The decline is primarily driven by a steep decline in shipments that outpaced a drop in orders,” said Shawn DuBravac, IPC’s chief economist. “Year-to-date trends highlight a negative trajectory in shipments alongside a narrowly positive trend in orders.”
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 September 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 September 2024 were up 10.3 percent compared to the same month last year. Compared to the preceding month, September shipments up 2.0 percent.
EMS bookings in September increased 19.6 percent year-over-year and decreased 10.8 percent from the previous month.
“The North American EMS book-to-bill ratio remains near the midpoint for the year, underscoring stable demand within the sector,” said Shawn DuBravac, IPC’s chief economist. “While September orders reflect a dip from the previous month, they indicate sustained resilience in bookings.”
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.
By Kate Koger, IPC public affairs coordinator
This week, I had the exciting opportunity to visit Detex's New Braunfels, Texas plant for a tour with two staffers from Senator John Cornyn’s (R-TX) office: Andi Dooley, regional director, and Jacob Smith, policy advisor for commerce, science, and technology. What made this visit even more special was how it specifically highlighted IPC’s apprenticeship program and how Detex is implementing it to address workforce challenges.
The tour started with a warm welcome at Detex, where we discussed the company’s history, workforce, and their unique role in the electronics manufacturing landscape. As we walked through the plant, I was able to see firsthand how Detex’s products contribute to local security, infrastructure, and even broader markets.
As the key focus of the tour was Detex's implementation of IPC’s Registered Apprenticeship program, we were able to see firsthand how Detex has worked to recruit, retain, and upskill workers. With the electronics industry facing a widening skills gap and an aging workforce, apprenticeship programs are vital to developing the next generation of skilled professionals. We had the chance to meet several apprentices and watch them in action. It was inspiring to see their high level of mastery of these complex skills with a degree of precision and confidence that underscored the power of hands-on learning.
Hearing their stories highlighted not just the success of the program but the importance of structured training in an industry where knowledge transfer and skill development are critical. The apprenticeship model helps fill the gap between the classroom and the production floor, offering a direct pathway into good careers while helping companies like Detex stay competitive.
It was especially important to see the success of these programs with government staffers like Andi and Jacob present. It’s one thing to talk about the importance of workforce development on Capitol Hill, but it’s another to see it up close! I was excited that they were able to not only witness the dedication of these apprentices, but also better understand the complexity of manufacturing processes. I believe this is the best way to better appreciate the need for policy that supports initiatives like apprenticeships. Their visit to Detex provided an opportunity for meaningful dialogue about the barriers we face in the workforce, from skills shortages to outdated training methods. By seeing these challenges firsthand, policymakers can better advocate for solutions that will benefit the entire electronics industry.
Visits like this make a real difference, especially as we approach this year’s National Apprenticeship Week (November 17-23). It's essential to get more policymakers on the ground and into factories so they can see what’s at stake. The electronics manufacturing industry is a vital part of our economy and national security, and addressing workforce challenges requires practical, well-informed solutions. Apprenticeship programs can be a game-changer, but they need strong support from government leaders.
To our IPC member companies, if you’d like to host a tour, we’re here to help make it happen. And for members of Congress and their staffers, come see the incredible work being done at manufacturing sites across the country. There’s no better way to understand the industry’s needs and the policies that will drive us forward.
Learn more about Detex and their apprenticeships in this IPC Community article: https://iconnect007.uberflip.com/i/1523888-community-q324/73
The 2024 IPC CEMAC China Electronics Manufacturing Annual Conference, co-organized by IPC and the Shanghai Pudong New Area Quality Technology Association, kicked off today with a grand opening ceremony in Shanghai. Themed "Making Your Imagination Reality," the event has brought together leaders, technical experts, and corporate representatives from the global electronics manufacturing industry to explore future trends and opportunities. This year's conference has attracted over 400 companies and more than 600 industry professionals, highlighting its influence as a significant gathering in the electronics manufacturing sector.
Sydney Xiao, president of IPC Asia, delivered a keynote speech at the opening ceremony, emphasizing the crucial role of the electronics manufacturing industry as a pillar of global economy. She noted that the industry is at a pivotal moment, with profound changes underway, including the reshaping of supply chains, the strategic enhancement of the semiconductor industry, and a growing focus on sustainable development by both society and businesses. The rapid advancement of cutting-edge technologies such as artificial intelligence, 5G/6G communications, the Internet of Things, and new energy sources is also redefining the industry landscape. IPC aims to use this conference as a platform to delve into how innovative concepts can be translated into actionable steps, driving the transformation and upgrade of the electronics manufacturing industry.
The two-day conference features keynote speeches and technical forums as the main attractions. Industry experts from both domestic and international fields will provide in-depth analyses of global electronics industry trends, discuss strategies for supply chain evolution, and promote the practical implementation of innovative technologies. During the technical forums, IPC will share the latest research findings and updates on standard development, offering practical solutions for attendees. The conference will also focus on hot topics like advanced packaging, factory of the future, electronic design, and e-mobility, IC substrate and advanced PCB manufacturing, with experts from various fields discussing the integration of industry standardization and technical practices to foster efficient industry growth.
A special session on sustainable development strategies and green manufacturing within the industry will delve into how the electronics manufacturing sector can balance the pursuit of economic benefits with social responsibilities, aiming for a win-win outcome.
As a leading standardization organization in the global electronics manufacturing industry, IPC will convene several technical group A-Team meetings during the conference, covering critical areas such as SIP system-level packaging, CFX connected factory data exchange, IGBT high-power semiconductors, and ESG management systems. Participants will have the opportunity to gain insights into the latest standards and participate in shaping global standards. Additionally, IPC China's standards, education, automotive electronics, and intelligent manufacturing steering committees will hold their annual meetings, ensuring that IPC initiatives remain responsive to the rapidly changing industry demands.
IPC is always committed to promoting innovation and sustainable development in the global electronics industry and has made continuous breakthroughs in standards setting, certification training, and industry intelligence through close cooperation with more than 3000 member companies worldwide. This annual conference is not only a platform for showcasing the latest innovative achievements in the industry but also a bridge for gathering global resources and achieving win-win cooperation. IPC, through its rich agenda, strives to transform advanced technology and development concepts into practical results, promoting technological innovation and upgrading in the electronics industry, helping the electronics manufacturing industry to move towards a more brilliant future.
For additional information on IPC CEMAC, 2024, visit https://cemac.ipc.org.cn.