IPC Presents Wide-Ranging Policy Priorities to Biden Administration, Notes Synergies Between “Build Electronics Better” and “Build Back Better”

In a letter to U.S. President Joe Biden, IPC applauds the Biden administration’s early directions on manufacturing policy and maps a detailed policy agenda to drive growth and resilience in electronics manufacturing.

“Your call for a resurgence in U.S. manufacturing signals a federal commitment that is sorely needed and long overdue,” wrote IPC President and CEO John Mitchell. “The U.S. Government needs to move beyond rhetorical support and provide meaningful and tangible programs that collectively constitute a coordinated, bipartisan vision for the future of manufacturing.” 

The letter outlines policy recommendations in five key areas, including:

  1. Strengthen the defense electronics industrial base.
    1. Implement Section 841 of the FY21 National Defense Authorization Act, which will bolster the security and resiliency of the U.S. defense electronics supply chain.
    2. Address concerns with the government’s Cybersecurity Maturity Model Certification (CMMC).
  2. Develop and implement a strategy to promote the factories of the future.
    1. Establish an interagency manufacturing policy lead.
    2. Invest in R&D for the entire electronics ecosystem.
    3. Bring back the U.S. supply chain.
  3. Expand and upskill the workforce.
    1. Support industry-recognized worker credentials.
    2. Reduce the burden for apprenticeship program implementation.
  4. Rebuild trade relationships.
    1. Revive multilateral trade pacts and dispute-resolution bodies.
    2. Endorse and implement a North American Manufacturing Initiative.
  5. Protect human health and the environment via practical policies and regulations.
    1. Structure regulations to build on industry best practices.
    2. Work with industry to ensure policies and regulations are based on existing data and information.

“IPC works with industry to ‘Build Electronics Better,’” Mitchell writes. “Your administration aims for the U.S. to ‘Build Back Better.’ Our shared language suggests we have a shared vision of creating skilled, well-paying jobs in a cleaner economy that renews and extends U.S. leadership in electronics manufacturing.”

View full letter here.

IPC Issues Industry Alert to Members Regarding U.S. EPA Prohibition of PIP (3:1) in Electronics

IPC alerted members about the U.S. Environmental Protection Agency’s (EPA) final risk management rules to reduce exposure to five persistent, bioaccumulative, and toxic chemicals (PBTs). The alert calls attention to the rules, which went into effect February 5, 2021, and to one of the five PBTs with a history of use in electronics: phenol, isopropylated, phosphate (3:1) (known as PIP (3:1)).

The final rule for PIP (3:1) prohibits the processing and distribution of this chemical substance and products containing this chemical substance as of March 8, 2021. There are some exceptions to the prohibition, for example, for new and replacement parts for automotive and aerospace industries, however, there are no electronics industry exceptions.

As a chemical that can perform several functions simultaneously, sometimes under extreme conditions, PIP (3:1) has several distinctive applications: It is used as a plasticizer; a flame retardant; an anti-wear additive; or an anti-compressibility additive in hydraulic fluid, lubricating oils, lubricants and greases, various industrial coatings, and in adhesives and sealants. PIP (3:1) is also used in plastic-containing materials that are used to form tubes, harnesses, cables, sleeves, gaskets, and covers of parts – parts that are used in electrical or electronic products.

IPC seeks out member input on the EPA final rule, requesting information on how the final rule may adversely affect supply chains for electronics manufacturers. To provide input, contact Kelly Scanlon, EHS policy and research director, at KellyScanlon@ipc.org. To view news on EPA’s final PIP (3:1) ruling and other advocacy and EHS-related information, visit www.ipc.org/ipc-advocacy.

The Global Economy Continues to Improve

IPC Releases February 2021 Economic Outlook

Good news! The global economy continues to improve, in many ways recovering better than anticipated. In the United States, our current forecast is for nearly three percent growth in the first quarter and there’s a good chance that our forecast for the first quarter, and all of 2021, will increase in the coming months. Incoming data has been solid.

In this month’s report, you will find U.S. and European data on economic growth, employment, Manufacturer’s Sentiment (PMI) and end markets for electronics.

READ FEBRUARY REPORT

North American PCB Industry Sales Begin 2021 Up 4 Percent

IPC Releases PCB Industry Results for January 2021

IPC announced today the January 2021 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.14.

Total North American PCB shipments in January 2021 were up 4 percent compared to the same month last year. Compared to the preceding month, January shipments decreased 16 percent.

PCB bookings in January increased 17.6 percent year-over-year. Bookings in January decreased 9.2 percent from the previous month.

“PCB shipments fell in January a bit more than expected given recent order trends,” said Shawn DuBravac, IPC’s chief economist. “The slowdown in shipments is driven in part by constraints on semiconductor availability which in turn is exerting pressure on other parts of the supply chain.”

PCB Book to Bill Chart 1 January 2021
PCB Book to Bill Chart 2 January 2021

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.

 

 

Best Technical Paper at IPC APEX EXPO 2021 Selected

The best technical conference paper of IPC APEX EXPO 2021 has been selected. Voted on through a ballot process by members of the IPC APEX EXPO Technical Program Committee, the paper authors will be recognized during show opening remarks on Tuesday, March 9.

Taking top honors, the winning paper is, “Signal Integrity, Reliability, and Cost Evaluation of PCB Interlayer Crosstalk Reduction” by Sarah Czaplewski, IBM Corporation. Her co-authors were: Roger Krabbenhoft and Junyang Tang, IBM Corporation. This paper will be presented during Technical Conference Session 14 (BF5-PCB Design - HDI and Signal Integrity Considerations) on Thursday, March 11.

This year, two papers were selected in the honorable mention category. Honorable mention goes to, “Board Thickness Effect on Accelerated Thermal Cycle Reliability” by Joe Smetana, Nokia. His co-authors included: Richard Coyle, Nokia; Eric Lundeen, BAE Systems; Iulia Muntele, Sanmina; Scott Danko, TTM; Neil Hubble, Akrometrix; and Bev Christian, HDPUG. This paper will be presented during Technical Conference Session 9 EE3 (HDP Projects Progress) on Wednesday, March 10.

Honorable mention also goes to “Analyzing Printed Circuit Board Voiding and other Anomalies when Requirements Covering the Anomalies are Vague” by Wade Goldman, The Charles Stark Draper Laboratory, Inc. His co-authors were: Hailey Jordan and Curtis Leonard, The Charles Stark Draper Laboratory, Inc. This paper will be presented during Technical Conference Session 3 EE1 (PCBA Quality, Reliability, and AI-based Inspection) on Wednesday, March 10.

The papers were evaluated on their technical content, originality, test procedures and data used to deduce conclusions, quality of illustrations and the clarity and professionalism of writing as well as value to the industry.

To register for the IPC APEX EXPO technical conference or for more information on all the activities taking place, including professional development courses, online exhibition, keynote presentations, networking activities and more, visit www.IPCAPEXEXPO.org.

EMS North America Industry Report, January 2021

IPC Releases EMS Industry Results for January 2021

IPC announced today the January 2021 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.18.

Total North American EMS shipments in January 2021 were up 9.7 percent compared to the same month last year. Compared to the preceding month, January shipments fell 6.4 percent.

EMS bookings in January fell 5.4 percent year-over-year but increased 10.2 percent from the previous month.

EMS book to bill ratio chart January 2021

View chart in pdf format

“The EMS sector carried last year's momentum into 2021,” said Shawn DuBravac, IPC’s chief economist. “Strong January orders should help drive shipments in the coming month.”

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.