IPC announced today the November 2021 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.43.

Total North American EMS shipments in November 2021 were up 2.5 percent compared to the same month last year. Compared to the preceding month, November shipments rose 4.0 percent.

EMS bookings in November rose 27.3 percent year-over-year and rose 10.1 percent from the previous month.

“Orders continue to outpace shipments by a wide margin. This discrepancy continues to be driven by supply chain disruptions and worker shortages,” said Shawn DuBravac, IPC’s chief economist. “Orders are up 22.3 percent this year while shipments are up 1.3 percent.”

View chart in pdf

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 announced today the November 2021 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.10.

Total North American PCB shipments in November 2021 were up 5.4 percent compared to the same month last year. Compared to the preceding month, November shipments fell 2.2 percent.

PCB year-to-date bookings in November were down 1.2 percent compared to last year. Bookings in November fell 10.2 percent from the previous month.

“Lower than normal utilization rates and other supply chain struggles continue to restrain PCB shipments,” said Shawn DuBravac, IPC’s chief economist. “Year-to-date books are up nearly 18% while shipments are up 5.7% over the same time period.”

View charts in pdf format

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 has issued two new industry intelligence reports today: the December sentiment of the global electronics manufacturing supply chain report and the December economic outlook report.

Material and labor costs continue to be the two largest issues facing the electronics supply chain while inventory and transportation constraints continue to be a major impediment to growth.

Results from our monthly sentiment study find:

• Nine in 10 electronics manufacturers report rising materials costs with nearly three-fourths reporting rising labor costs.
• While order flow remains positive, higher costs are hurting profit margins; 58% reported expanding orders, but 40% reported a decline in profit margins, and 19% reported profit margin improvement

VIEW FULL SUPPLY CHAIN SENTIMENT REPORT

The December economic outlook report shows:

• Despite uncertainties, supply chain disruptions have resulted in unfilled pent-up demand that should help carry growth into the first half of 2022. While we have lowered our forecast somewhat, 2022 should still be a historically strong year.

• Incoming data is consistent with IPC’s monthly sentiment study. There is capacity to buy, among both consumers and businesses, but supply chain constraints have limited potential growth in spending and investment. Manufacturers report strong order growth, but growth is being offset by higher costs and as a result profit margins are declining.

VIEW FULL ECONOMIC OUTLOOK REPORT

IPC announced today the October 2021 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.48.

Total North American EMS shipments in October 2021 were down 4.4 percent compared to the same month last year. Compared to the preceding month, October shipments fell 0.8 percent.

EMS bookings in October rose 40.0 percent year-over-year and rose 22.2 percent from the previous month.

“Supply chain constraints and parts availability continue to hamper electronics manufacturing. Order flow grew strongly during the month, while shipments declined,” said Shawn DuBravac, IPC’s chief economist. “I estimate shipments were roughly 12 percent below where they would be in a well-functioning market.”

View chart in pdf format

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.