U.S. Economy Continues to Surpass Growth Expectations; European Outlook is Tepid

IPC Issues July Economic Outlook Report

Despite numerous risks – higher interest rates, tight monetary policy, persistent core inflation -- the U.S. economy continues to surpass expectations this year. The narrative is a bit cloudier in Europe. While inflation remains high, the underlying economy appears weaker which will cause the European Central Bank to move more cautiously, per IPC’s July 2023 Economic Outlook report. 

According to Shawn DuBravac, IPC’s chief economist, “Manufacturer sentiment remains subdued in both the U.S. and Europe according to Purchasing Managers' Index surveys in each region. But the U.S. is showing good resiliency and data over the last month should make us a bit more optimistic about the second half.”

Additional data in the July IPC Economic Outlook show:

  • U.S. manufacturers appear to be investing in capacity, setting a generally bullish tone for the years ahead. 
  • The U.S. labor market is also holding up well. Initial claims for state unemployment benefits fell by 7,000 to a seasonally adjusted 221,000 for the week ending July 22. This is the lowest level since February. Job growth eased in June to its slowest pace in 30 months, but the labor market is still tight.
  • Consumer sentiment is up sharply in the last two months. Sentiment rose 8.8 percent in June, further strengthening in the second half of the month. The short-run economic outlook surged 28 percent and the long-run outlook rose 11 percent.
  • The European economy fell during the first quarter of the year, edging down 0.1 percent in the euro area, but rising 0.1 percent in the EU. The economy is up 1.0 percent in both the Euro area and the EU compared to the first quarter of last year.
  • The unemployment rate for the euro area remained at 6.5% in May and the EU unemployment rate moved down one-tenth of a percentage point to 5.9 percent. Unemployment in Europe is at the lowest levels in 30 years.

View July 2023 IPC Economic Outlook. For more information on IPC’s industry intelligence program including current research and reports, visit www.ipc.org/advocacy/industry-intelligence.

Shipments, Orders and Capacity Utilization Indices Weaken This Month, But Industry Outlook Remains Upbeat

IPC Releases July Global Sentiment of the Electronics Supply Chain Report

Current conditions have receded with Shipments Index, Orders Index, and Capacity Utilization Index all weakening in July, but at the same time, the outlook for shipments, orders, and utilization all improved per IPC’s July 2023 Global Sentiment of the Electronics Supply Chain Report.

In addition, cost pressures continue to decline and the outlook for inventory availability continues to improve. “The majority of survey respondents are still reporting that labor costs and material costs are rising, but the number of companies experiencing rising costs declined again this month. The outlook for costs also improved this month,” said Shawn DuBravac, IPC chief economist. “Both outlook indexes looking at inventory availability improved this month,” DuBravac added.”

Per special questions asked about EMS market share, industry expects Mexico’s EMS market share to grow in the coming years. Survey data show:

  • Over the next 10 years, manufacturers expect North American EMS market share in the USA to steadily decline, while increasing in Mexico and remaining relatively stable in Canada.
  • Industry executives expect the global EMS share in North America will increase somewhat over the next 10 years. It is expected to increase significantly in Mexico, while declining across other markets.
  • Of interest, North American manufacturers anticipate a significantly higher 10-year increase in global EMS share in the North American market, with European manufacturers expecting a significantly higher 10-year increase in other markets.

For the report, IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain. View full report.

Electronics Industry Seeks Clarity from U.S. Commerce Secretary Raimondo on PCB Sector Funding

Dedicated funds would help ensure success of the CHIPS Act and Biden’s “Presidential Determination” on PCBs

IPC and the Printed Circuit Board Association of America (PCBAA) are calling on the U.S. Department of Commerce to clarify its plans for bolstering the domestic development and fabrication of advanced printed circuit boards (PCBs) as a key part of the CHIPS for America program.  

In a letter sent to Commerce Secretary Gina Raimondo, IPC President and CEO John W. Mitchell and PCBAA Chairman Travis Kelly applauded the “positive signals” that have been sent by the Biden administration regarding greater support for PCBs:

  • In March, President Joe Biden issued a “Presidential Determination” under the Defense Production Act (DPA) that prioritizes the domestic manufacture of PCBs as a matter of national security.
  • In launching the first round of funding under the CHIPS for America program, Raimondo announced the U.S. will become a global leader in related chip packaging technologies.
  • The week before that, Raimondo confirmed that some of the CHIPS Act funding will go to “smaller firms,” including “circuit-board companies.”

“As the U.S. electronics sector faces significant challenges in the global market, it is crucial to develop strategies that foster growth, innovation, and competitiveness across this vital industry,” Mitchell wrote.

“Chips, in fact, have no functionality until they are packaged and placed on PCBs by electronics manufacturers who assemble systems. Yet, the United States is more dependent on overseas suppliers for PCBs and packaging than they are for semiconductor chips.”

IPC is also calling on the Defense Appropriations Subcommittees in the House and Senate to allocate $100 million in Fiscal 2024 to implement President Biden’s presidential determination on PCBs. The funding also would advance the goals of the CHIPS and Science Act, which aims to ensure the autonomy and resiliency of the U.S. supply chain for semiconductors and advanced electronics. 

A 2022 report by the Commerce Department noted, “PCBs are essential for the electronic functions of ICT hardware as well as for a wide array of automotive, defense, and medical devices. [But] In the past 20 years China has overtaken the U.S. as the global leader in PCB manufacturing and sales.” A 2018 Commerce Department report characterized the PCB sector as “dying on the vine.”

According to “Leadership Lost,” a report published by IPC, the United States “has lost its historic dominance in the PCB sector.” Since 2000, the U.S. share of global PCB production has fallen from over 30% to just 4%, with China now dominating the sector at around 50%. Any loss of access to non-domestic sources of PCBs would be “catastrophic,” the report said.

 

Electrical Wire Processing Technology Expo (EWPTE)

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Why Attend the Electrical Wire Processing Technology Expo (EWPTE)?

Produced by WHMA/IPC, the ONLY trade association exclusively representing the cable and wire harness manufacturing industry including manufacturers, their suppliers and customers, EWPTE is where the industry comes together with more than 3,000 attendees and nearly 200 exhibitors to find solutions to challenging wire problems through training and education and for the opportunity to network with industry leaders and subject matter experts. Attendees at all career stages can expect to Harness the Future through:

Education & Training
Professional Development Courses with content designed to deliver new information, skills, and techniques related to the cable and wire harness industry. 

Technical Conference Sessions presented by engineers, researchers, academics, technical experts, and industry leaders who will share new technical data, significant results from experiments and case studies, emphasizing new techniques and discussing trends of interest with appropriate technical test results.

Networking Opportunities by connecting with industry leaders and subject matter experts.

Accessing New Technologies and finding new suppliers to find solutions to your challenging wire problems on the show floor from nearly 200 exhibitors.

WHMA's Annual Global Leadership Summit

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The wire harness industry is constantly evolving with new technology and practices. The 2024 WHMA Annual Global Leadership Summit offers the tools you need to help your business succeed in this fast-changing landscape. WHMA's Annual Global Leadership Summit (formerly the WHMA Annual Conference) is a networking event for executives representing wire harness manufacturers, OEMs and suppliers for companies that build wiring harnesses and cable assemblies.

  • Peer-to-peer networking provides countless opportunities for you to improve your business as you learn, share, and discover new approaches to the wire harness industry.
  • Learn from industry leaders at best-practices roundtables, technical education workshops, and keynote speakers.
  • Get the first look at cutting-edge technology in the Exhibit Hall featuring industry leading suppliers.

Invest in your business and your future at WHMA's Annual Global Leadership Summit!

North American PCB Industry Sales Down 15.8 Percent in June

IPC releases PCB industry results for June 2023

IPC announced today the June 2023 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 0.98.

Total North American PCB shipments in June 2023 were down 15.8 percent compared to the same month last year. Compared to the preceding month, June shipments were down 0.8 percent.

PCB bookings in June were down 7.7 percent compared to the same month last year. June bookings were up 0.2 percent compared to the preceding month.

“The PCB book-to-bill improved this month as shipments slowed and orders improved for a second month, but the trend this year remains slower order flow,” said Shawn DuBravac, IPC’s chief economist.

June 2023 PCB book to bill chart 1
June 2023 PCB book to bill 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 Canada. IPC publishes the PCB book-to-bill ratio by the end of each month.

 

 

North American EMS Industry Up 0.9 Percent in June

IPC releases EMS industry results for June 2023

IPC announced today the June 2023 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.24.

Total North American EMS shipments in June 2023 were up 0.9 percent compared to the same month last year. Compared to the preceding month, June shipments increased 4.3 percent.

EMS bookings in June decreased 11.5 percent year-over-year and increased 0.6 percent from the previous month.

“The EMS book-to-bill remained steady this month,” said Shawn DuBravac, IPC’s chief economist.  “The year-to-date trend, however, suggests shipment growth slowed a bit this month and order flow worsened for the year.”

June 2023 EMS book to bill 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.

 

Winners of IPC Masters Competition China 2023 Announced

IPC China Skills Competition has been upgraded to IPC Masters Competition China 2023. The competition was co-organized with Pudong New Area Association for Quality and Technology Shanghai and held July 11-13 in Shanghai.

In addition to hand soldering and rework, and cable and wire harness assembly competitions, a new BGA (ball grid array)/BTC (bottom terminated component) rework competition was launched. This is the first time that three competitions have been held concurrently. The competition welcomed 297 participants from 42 companies across 17 provinces and three municipalities.

Skilled contestants competed against each other to finish a functional electronics assembly within a required time limit. The three competitions were judged strictly in accordance with the corresponding standards: IPC-A-610H, IPC J-STD-001H, IPC-7711/21C, IPC/WHAM-A-620D, IPC-7093A, IPC-7095D-WAM1 - Class 3 criteria.

Top three BGA/BTC Rework Competition winners were:

  • First Place: Wujun Li, AVIC Computing Technique Research Institute.
  • Second Place: Si Chen, Beijing Railway Signal Co., Ltd.
  • Third Place: Guojun Yu, Wistron InfoComm (Kunshan) Co. Ltd.

Top three Cable and Wire Harness Assembly Competition winners were:

  • First Place: Jieyuan Cui, Shanghai Railway Communication Co., Ltd.
  • Second Place: Xiaoqin Shi, Wuhu State Machinery Factory
  • Third Place: Dongying Xu, Wuhu State Machinery Factory

Top three Hand Soldering and Rework Competition winners were:

  • First Place: Lingling Xu, Shanghai Railway Communication Co., Ltd.
  • Second Place: Jingjing Xu, Shanghai Railway Communication Co., Ltd.
  • Third Place: Yao Tang, Shenyang Railway Signal Co., Ltd.

All those placing in the top three positions received a certificate. The top three winners of the Hand Soldering and Rework Competition qualified for the IPC Hand Soldering World Championship in Munich, Germany in November.                                               

IPC would like to thank IPC Masters Competition China sponsors and partners for their generous support this year.

  • Premier Sponsor: QUICK
  • Supporting Sponsors: POUSTO, Lian Xi Technology
  • Co-Organizer: Pudong New Area Association for Quality and Technology Shanghai

For more information on IPC Masters Competition China next year, please contact Glenn Gong, marketing director, IPC Asia, at GlennGong@ipc.org. or contact Abby Zhang, marketing manager, at AbbyZhang@ipc.org.

 

Technical Paper Writing: Industry Best Practices for Conference Manuscripts

Date
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Using the IPC APEX EXPO Technical Conference as a model, this webinar will provide an overview of best practices for preparing technical data to write a high-quality manuscript suitable for conference presentation and publication. This tutorial is designed for anyone who wants to build their technical writing skills and share their innovations and research with a technical audience, and will have a special focus on the electronics industry. The session will highlight important advanced preparations prior to submitting an abstract or paper that should be considered by the author and their management. Using the style guideline created for IPC APEX EXPO, attendees will receive an overview of the mechanics, format, and outlines used for an effective technical paper and presentation. Also covered will be how to avoid commercialism and common pitfalls that lead to inefficiencies and reduced quality. 

Stan Rak September 28

Speaker Bio

Dr. Stanton Rak is the President of SF Rak Company and specializes in materials science and electronics manufacturing consulting for automotive applications.  Stan is currently chairing the Technical Program Committee for IPC APEX EXPO 2025. He is also a member of the IPC Thought Leaders Program 2023-24. Previously, Stan worked 29 years combined at Continental Automotive and Motorola Automotive Group in global, manufacturing technology executive roles. Stan has a PhD degree in Organic Chemistry from the University of Minnesota. He is an active member of the IPC and has chaired / co-chaired the IPC APEX EXPO Technical Program Committee 2021-2024. Stan received the IPC President’s Award in 2023 and Rising Star Award in 2016.