North American EMS Industry Down 7.4 Percent in October

IPC releases EMS industry results for October 2023

IPC announced today the October 2023 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.23.

Total North American EMS shipments in October 2023 were down 7.4 percent compared to the same month last year. Compared to the preceding month, October shipments decreased 0.5 percent.

EMS bookings in October decreased 19.5 percent year-over-year and decreased 4.8 percent from the previous month.

“EMS bookings were weak for the second consecutive month. The year-to-date trend for bookings declined to its lowest level of the year,” said Shawn DuBravac, IPC chief economist.

October 2023

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.

IPC Applauds New U.S. Government Strategy for Advanced Packaging

$3 Billion in CHIPS Act Funding to Support Vital Electronics Technology

The U.S. Government’s announcement today of a national strategy for “advanced packaging” under the CHIPS for America Program is a big step toward ensuring the resiliency and security of the U.S. supply chain for advanced electronics.

The “Vision for the National Advanced Packaging Manufacturing Program” (NAPMP), released today by the U.S. Commerce Department, says approximately $3 billion will be used to drive U.S. leadership in advanced packaging, with an initial funding opportunity to be announced in early 2024.

IPC has been the leading advocate for a “silicon-to-systems” approach to implementation of the CHIPS Act. A silicon-to-systems approach recognizes the importance of silicon fabrication, while underscoring the need for broader electronics manufacturing capabilities—including PCB fabrication and electronics assembly—to ensure that the U.S. can manufacture cutting edge technologies.  

“Advanced packaging” today is driving semiconductor innovation by introducing greater electronic interconnection within semiconductor packages. Electronic interconnection is a capability that has been marginalized in the U.S. but is now key to U.S. semiconductor leadership. 

“Indeed, advanced packaging is poised to play a major role in the development of chips for artificial intelligence, cloud computing, and medical applications, among many other next-generation technologies,” the Commerce Department stated earlier this year. 

However, a 2021 IPC report found the U.S. has only just begun to invest in advanced packaging, while nations in Asia have sprinted ahead to develop the lion's share of capabilities and capacity. The U.S. only accounts for 3% of global semiconductor packaging and lacks even state-of-the-practice capabilities.  

IPC has documented that an “ecosystem” approach covering several related electronics technologies is essential to achieving the goals of the CHIPS Act. For example, IPC believes the U.S. Government also must build up domestic capacity to produce advanced integrated-circuit (IC) substrates and printed circuit boards (PCBs).

“Bolstering chip production without commensurate growth in advanced packaging, PCB fabrication, and electronic assembly is likely to lengthen the supply chain and exacerbate glaring vulnerabilities in U.S. electronics manufacturing,” says Chris Mitchell, IPC VP of Global Government Relations.

For more information: Advanced Packaging Semiconductors | IPC Industry Initiatives

U.S. Approval of IPC Apprenticeships Highlights National Apprenticeship Week

Nov 17, 2023

By Cory Blaylock, IPC Director of Workforce Partnerships

Years in the works, IPC earned the U.S. Department of Labor’s approval for our National Program Standards of Apprenticeship on Wednesday, November 15.

The event is a major milestone as it’s the first-ever U.S. Government approval of apprenticeship standards in the U.S. electronics manufacturing industry. IPC’s standards cover two critically important occupations – electronics assemblers and printed circuit board fabricators – with more to come – and they provide a defined pathway to secure, well-paying careers in electronics manufacturing.

IPC is now authorized to register with each state’s Eligible Training Provider List, which means companies in all 50 states can begin implementing apprenticeship programs that are eligible for funding by Workforce Innovation and Opportunity Act (WIOA) dollars.

A signing ceremony on Wednesday with Megan Baird, Deputy Administrator of the Office of Apprenticeship at the U.S. Department of Labor (DOL) was the highlight of a busy week at IPC, marking National Apprenticeship Week in the United States.

On Monday, IPC Senior Director of North American Government Relations Rich Cappetto and I attended an apprenticeship promotion event sponsored by the Maryland Dept. of Labor, along with employers and educators from across the state. On Tuesday, Rich and I visited the Baltimore facilities of Zentech Manufacturing to learn about their operations and workforce training programs.     

On Thursday, IPC President and CEO John W. Mitchell hosted a North American Executive Forum on workforce topics with roughly 30 U.S. senior executives. The group heard from U.S. Rep. Suzanne Bonamici (D-OR), a congressional leader on workforce issues, who praised the IPC initiative and spotlighted legislative efforts to expand such programs.

John Mitchell also issued a proclamation early in the week calling on IPC members to become Workforce Champions and expand workforce education programs.

On another high note, IPC reported the results of its Workforce Champions efforts over the last five years. Despite the COVID-19 pandemic:

  • Jobs: Overall, the U.S. electronics industry added more than 75,000 jobs, exceeding the association’s 2018 projection by 50%.
  • Credentials: More than 300,000 individuals have earned career-enhancing credentials by participating in IPC education programs and earning IPC certifications.
  • Secondary and Post-Secondary Education: The IPC Education Foundation facilitated the completion of introductory courses by 4,000 college students; the exposure of 6,000 high school and college students to industry skills; and the distribution of $250,000 in scholarships and awards.
  • High Schools: IPC also launched a pilot program to equip more than 200 high school students with essential skills for jobs in the electronics assembly sector. This opportunity provides rigorous training through career and technical education (CTE) programs and encourages students to enter apprenticeship programs after high school.

There are too many organizations and individuals to list here who have contributed to these achievements, but a few of them are:  

  • My boss, Dave Hernandez, IPC Vice President of Education, and the entire IPC Education team.
  • Matthew McKenney of the Institute for American Apprenticeships, which advised IPC throughout the long process of getting our programs organized.
  • The IPC Member Companies who endorsed our apprenticeship initiative to the Labor Department: ASMPT (Georgia, Massachusetts), Calumet Electronics (Michigan), Flex (Texas), Microboard (Connecticut), Out of the Box Manufacturing (Washington), TTM Technologies (California), and Zentech (Maryland). Their endorsements are a signal of interest in launching their own apprenticeship programs and demonstrate that they are truly Workforce Champions.

As John Mitchell said at the signing ceremony, “More than two-thirds of IPC’s U.S. members report that an inability to find and retain skilled workers is limiting their growth and global competitiveness. The Department of Labor’s endorsement of IPC’s apprenticeship standards will help foster a larger, more skilled, and more diverse workforce. We are excited about the positive impacts on workers, their communities, and the electronics manufacturing industry.”

IPC has long been a workforce champion because, as an industry, we cannot wait on government or depend on government to solve it for us. We have to step up ourselves. But government partners certainly help. With the approval of IPC’s National Program Standards of Apprenticeship, we’re stepping in the right direction.

For more information, please visit:

View signing ceremony recap video:

Signing Ceremony
The U.S. Department of Labor (DOL) approved IPC’s National Program Standards of Apprenticeship – the first-ever in the U.S. electronics manufacturing industry.

 

Or contact me at CoreenBlaylock@ipc.org.  

 

IPC Attains U.S. Dept. of Labor Approval of its National Apprenticeship Standards, First-Ever in U.S. Electronics Manufacturing Industry

Reports five-year growth in electronics workforce programs as it celebrates National Apprenticeship Week

The U.S. Department of Labor (DOL) approved IPC’s National Program Standards of Apprenticeship – the first-ever in the U.S. electronics manufacturing industry – in a move designed to expand the skilled workforce for this strategically vital industry.  

The recognition was bestowed during a ceremony yesterday as part of National Apprenticeship Week, November 13-19. The DOL’s action ensures that IPC’s Registered Apprentice programs are recognized nationally and align with the industry’s highest standards of proficiency in electronics manufacturing. IPC is now authorized to register with each state’s Eligible Training Provider List.

National Program Standards of Apprenticeship are occupational training standards developed and sponsored by an employer, an industry organization, labor organization, educational institution, or consortium. IPC’s apprenticeship standards cover two critically important occupations – electronics assemblers and printed circuit board fabricators – and provide valuable, hands-on experience with a defined pathway to secure, well-paying careers in electronics manufacturing.

“More than two-thirds of IPC’s U.S. members report that an inability to find and retain skilled workers is limiting their growth and global competitiveness,” said John W. Mitchell, IPC president and CEO and author of Fire Your Hiring Habits. “The Department of Labor’s endorsement of IPC’s apprenticeship standards will help foster a larger, more skilled, and more diverse workforce. We are excited about the positive impacts on workers, their communities, and the electronics manufacturing industry.”

IPC Celebrates National Apprenticeship Week

To mark National Apprenticeship Week, Mitchell issued a proclamation calling on IPC members to become Workforce Champions and expand workforce education programs. Six companies – ASMPT (Georgia, Massachusetts), Calumet Electronics (Michigan), Flex (Texas), Microboard (Connecticut), Out of the Box Manufacturing (Washington) and TTM Technologies (California) – have already endorsed the apprenticeship initiative to the DOL, signaling their interest in launching programs within their companies. 

Mitchell will host a discussion this afternoon for North American industry executives with U.S. Rep. Suzanne Bonamici (D-OR), founder and co-chair of the bipartisan Congressional STEAM Caucus; co-chair of the Congressional Apprenticeship Caucus; and co-chair of the Congressional Career and Technical Education Caucus.

IPC is also sharing the results of its Workforce Champions initiative, launched in 2018 with a goal of expanding IPC’s education programs. Despite the COVID-19 pandemic, the following achievements were met over the last five years:

  • Jobs: Overall, the U.S. electronics industry added more than 75,000 jobs, exceeding the association’s 2018 projection by 50 percent.
  • Credentials: More than 300,000 individuals have earned career-enhancing credentials by participating in IPC education programs and earning IPC certifications.
  • Secondary and Post-Secondary Education: The IPC Education Foundation facilitated the completion of introductory courses by 4,000 college students; the exposure of 6,000 high school and college students to industry skills; and the distribution of $250,000 in scholarships and awards.

IPC also launched a pilot program to equip more than 200 high school students with essential skills for jobs in the electronics assembly sector. Aligned with DOL standards, this opportunity provides rigorous training through career and technical education (CTE) programs and encourages students to enter apprenticeship programs after high school. Looking ahead, IPC is scaling these programs to additional high schools, community colleges and universities across the country.   

More information about IPC’s apprentice programs and other educational programs can be found at:

Attendees Can Maximize Their Connections Through Networking Functions at IPC APEX EXPO 2024

IPC APEX EXPO 2024 attendees can expand their global network and meet with electronics industry innovators and connect with peers throughout the show floor, in technical conference sessions, professional development courses, standards development meetings, special networking events, and social receptions at the Anaheim Convention Center, April 6–11, 2024. Registration is now open.

“Together and under one roof for the first time in over a decade, IPC APEX EXPO 2024, host to the 16th Electronic Circuits World Convention (ECWC) technical conference, will be the largest gathering of industry leaders, manufacturing innovators, and subject matter experts in North America,” said Alicia Balonek, IPC’s senior director of trade show and events. “Thousands of attendees from 60+ countries will come together in Anaheim and experience extraordinary global networking and educational opportunities packed with insights to explore what’s next becomes now.

Among the highly anticipated special events are the newcomer’s reception; a new ECWC Welcome Reception;  the Women in Electronics reception featuring a panel discussion lead by IPC Hall of Famer, Karen McConnell, Northrop Grumman, who will cover work/life balance issues; three event luncheons with the Monday luncheon featuring a keynote presentation by IPC Chief Economist Shawn Dubravac and the Wednesday luncheon featuring IPC President and CEO John W. Mitchell who will give a keynote on the future of the human workforce; show floor events, and more.  

Added Balonek, “Special events at IPC APEX EXPO provide tremendous value for attendees. This is what makes IPC APEX EXPO a must-attend event.”

The event essentials pass as well as access to the exhibit hall is free to those who register by April 6, a savings of $50 on-site. Attendees who register by March 1 will save 20 percent off registration fees. In addition, attendees who register for the All-Access Package will receive a significant percentage – 70 percent off – a la carte options. Schedule and registration details are available at www.IPCAPEXEXPO.org.

Unpacking the TSCA PFAS Reporting Rule – Impacts on the Electronics Sector

Date
- (11:00am - 12:00pm CST)

This webinar will provide an overview of the new one-time EPA reporting rule on PFAS under the Toxic Substances Control Act. The new rule will have a significant impact on electronics producers and importers, because of (a) the widespread use of PFAS within the electronics supply chain; (b) the very expansive definition of PFAS in the rule, which includes commonly used polymers; and (c) EPA’s decision to include imported articles within the scope of the rule.

Speakers Ryan Carra and Russ LaMotte from law firm Beveridge & Diamond will provide an overview on:
• what the rule requires
• what it does not require
• some of the areas of remaining ambiguity, and
• strategies for the electronics sector to address these obligations and navigate those ambiguities.

IPC CEMAC 2023: Advancing Innovation and Cooperation in the Electronics Industry

IPC CEMAC 2023, with a theme of “Building an Intelligent Future: Innovation and Cooperation in the Electronics Industry,” was held successfully in Shanghai on October 27, 2023. The event drew a crowd of more than 300 attendees from 200+ companies across the electronics industry.

During the conference, representatives and industry experts had in-depth discussions on the key topics of standardization and advanced technologies. The conference had six forums, covering automotive electronics, talent training and development, innovative products and solutions, advanced packaging, factory of the future and ESG sustainability.

At the IPC Asia Member Appreciation & Awards Dinner, IPC issued awards and celebrated member companies as well as individuals who made outstanding contributions to the electronics industry in 2022 and 2023.

Sydney Xiao, president of IPC Asia said, “CEMAC stands as IPC's annual landmark event in China, with a primary focus on addressing the most crucial subjects in the electronics manufacturing industry. It serves as a prominent platform for facilitating communication and fostering collaborative opportunities within the electronics manufacturing sector. We wholeheartedly invite greater participation to spark industry innovation and promote cooperation.”

IPC CEMAC 2024 will be held in Shanghai on October 25, 2024.

For more information on IPC CEMAC 2024, contact Glenn Gong, marketing director, IPC Asia, at GlennGong@ipc.org; Abby Zhang, event manager, IPC Asia, at AbbyZhang@ipc.org; or Blair Yan, marketing manager, IPC Asia, at BlairYan@ipc.org.

 

Winners of IPC's Taiwan Region Hand Soldering and Rework Competition 2023 Announced

IPC’s Taiwan Region Hand Soldering and Rework Competition 2023 was held in Taipei City, Taiwan on October 13, 2023.

Skilled contestants were challenged to rework a functional electronics assembly within a 45-minute time limit. Assemblies were judged on soldering in accordance with IPC-A-610H, IPC J-STD-001H, and IPC-7711/21C - Class 3 criteria, the speed at which the assembly was produced, and the overall electrical functionality of the assembly.

Skilled technicians from the electronics industry across Taiwan showcased their expertise and engaged in a fierce one-day competition. After a rigorous judging process, first-, second-, and third-place awards were presented.

Winners of IPC’s Taiwan Region Hand Soldering and Rework Competition 2023 were:

  • First Place: Yangyu Chen, National Taiwan University of Science and Technology
  • Second Place: Weiting Chen, Wistron Corporation
  • Third Place: Yisheng Cai, SINBON Electronics Co., Ltd.

For more information on next year’s Taiwan Region Hand Soldering and Rework Competition, contact Glenn Gong, marketing director, IPC Asia, at GlennGong@ipc.org; Abby Zhang, event manager, IPC Asia, at AbbyZhang@ipc.org; or Blair Yan, marketing manager, IPC Asia, at BlairYan@ipc.org.

Registration Open for the 2024 WHMA Annual Global Leadership Summit

Registration is now open for the 2024 WHMA Annual Global Leadership Summit, the industry’s only annual executive networking event for the cable and wire harness manufacturing industry including manufacturers, their suppliers, and customers.

Taking place February 13-15, 2024, in Myrtle Beach, S.C., influential thought leaders and forward thinkers will take to the stage to deliver their valuable perspectives on topics that are important to executives, including impactful leadership tactics, employee recruitment and retention strategies, building cultures of connection, and the emerging trends reshaping the electronics industry.  The lineup of speakers include:

  • David Marquet, retired United States Navy captain and bestselling author of Turn the Ship Around! A True Story of Turning Followers into Leaders. Marquet will present the conference opening keynote “Turn the Ship Around! Creating Leaders at Every Level” on Wednesday, February 14, 9:00 am to 10:15 am EST.
  • Cara Stilletto, MBA, CSP, president and chief retention officer, Magnet Culture, a Crescendo Strategies Company. Stilletto will present “The Case for Change: Critical Workforce Insights for Leaders” on Wednesday, February 14, 10:45 am to 12:00 pm EST.
  • Brian Fretwell, author and speaker. Fretwell will present “Building Cultures of Connection” on Wednesday, February 14, 3:30 pm to 5:00 pm EST.
  • Shawn DuBravac, Ph.D., CFA, WHMA/IPC chief economist. Dr. DuBravac will present “From Now to Next: The Emerging Trends Reshaping the Electronics Industry” on Thursday, February 15, 8:30 am to 9:30 am EST.
  • Steve Baker, vice president, The Great Game of Business, Inc. Baker will present “Get in the Game: How to Create Rapid Financial Results and Lasting Cultural Change” on Thursday, February 15, 10:45 am to 12:00 pm EST.

In addition to two days of inspiring keynotes and featured speakers, the conference will offer an opening workshop sponsored by the alliantgroup on “Strategic Practices for Success: Outpacing Competitors, Optimizing Bids and Nurturing Top Talent” on Tuesday, February 13, 3:00 pm to 5:00 pm presented by Neil Shah.

New this year are hands-on breakout workshops which will take a deeper dive into the keynote presentation topics and offer real, tangible, executable takeaways that leaders can immediately implement. Cara Stilletto will present “Workforce Wake-Up Call the Case for Operationalizing Turnover” on Wednesday, February 14, 1:30 pm to 3:00 pm. Steve Baker will present “Educate, Empower and Engage Your Team with MiniGames™” on Thursday, February 15, 1:30 pm to 3:00 pm. Attendees will learn leadership strategies to help their organizations succeed.

For more information on the conference including schedule, exhibition, speaker profiles, sponsorship opportunities, or to register for event, visit https://annualconference.whma.org.

U.S. Economy Approaches Tipping Point, Evidence Indicates Downturn in Europe

IPC releases October 2023 Economic Outlook Report

The U.S. economy is thriving, with a surge of 4.9 percent in the third quarter of 2023, according to IPC’s October 2023 Economic Outlook Report. The unemployment rate is 3.8 percent. Inflation is high, but it is decreasing, and wage growth is outpacing inflation, meaning workers are seeing an increase in purchasing power.

In Europe, economic growth remains delicately positive, but energy prices have become less predictable due to rising geopolitical tensions. The war in Ukraine and the Israel-Hamas conflict could further erode confidence and increase uncertainty among businesses and households.

According to Shawn DuBravac, IPC’s chief economist, “Many of the forces driving U.S. economic growth in the third quarter will likely reverse in the coming quarters. While growth is strong, maintaining the current momentum will be very difficult in the year ahead. In Europe, the coming months will provide a clearer picture of whether the current economic challenges persist or evolve in 2024.”

Additional data in the October IPC Economic Outlook show:

  • In the U.S., a recession is not a foregone conclusion, but the probability remains high. Regardless, the U.S. is entering a period of slower growth.
  • U.S. industrial production rose 0.3 percent in September. The manufacturing sector rose 0.4 percent during the month.
  • In Europe, early results for Q3 appear mixed. Germany, Europe’s largest economy, declined 0.1 percent after rising 0.1 percent in the prior quarter.
  • In Europe, motor vehicle manufacturing output rose 4.1 percent (month-on-month). The sector is up 11.2 percent over the last year.

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

 

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