Electronics Manufacturing Poised for Jobs to Rise Over Pre-Pandemic Levels; Industry Backs Short-Term Stimulus and Long-Term Investment

The following is a statement by John Mitchell, IPC President and CEO, on this week’s U.S. employment numbers and the Biden Administration’s American Rescue Plan.                              

“All signs indicate 2021 should be a year of recovery. The jobs report indicates that as the vaccine gains momentum and the economy normalizes, the U.S. will add jobs at a healthy clip. The electronics industry is a bright spot in the data, poised to increase jobs over pre-pandemic levels, outpacing the rest of the economy and driving overall growth. IPC urges Congress to come together on both short-term stimulus and long-term, strategic investment plans to ensure a lasting, broad-based recovery.” 

IPC APEX EXPO 2021 Offers More than 100 Future-focused Educational Opportunities

Changing technologies, advanced materials and new processes that are driving the electronics manufacturing industry will take center stage throughout the IPC APEX EXPO 2021 technical conference and professional development sessions, which will take place virtually March 8-12. Registration is now open at www.IPCAPEXEXPO.org.

This year’s technical conference will feature more than 70 technical sessions detailing original research and innovations from industry experts around the world. Subject-matter experts will cover hot topics in three tracks: factory of the future implementation; PCB fabrication and materials; and quality, reliability, assembly, test and inspection.

“As the importance of modernization, automation and data exchange in manufacturing grows, designers and engineers need to keep current. Which is why the industry needs the education that IPC APEX EXPO 2021 will offer,” said Matt Kelly, IPC chief technologist and APEX technical conference co-director. “Throughout the conference tracks, attendees will access new research on data analytics, connected factory, cybersecurity, and digital twin; learn more about microvia reliability, PCB design, reliability, and advancements; and advance their skills in automotive electronics, electronics materials, assembly, coating, and printed circuit board assembly design. Industry experts will teach the practical to help attendees succeed at their job,” Kelly added.

IPC APEX EXPO’s half-day professional development courses will blend traditional electronics industry topics with hot-new developments, delivered by corporate technologists, consultants, training center staff and university faculty. Whether it’s advanced courses exploring the details and depth of specific topics, or informative courses catering to engineers ready to improve their careers, attendees can find the right professional development course for their specific role and experience level. Courses will cover: assembly processes; circuit design and component technologies; PCB fabrication and materials; and quality, reliability, test and inspection.

All technical conference sessions and professional development courses will be available via on-demand access 90 days after the event. In addition to educational offerings, IPC APEX EXPO features many free activities, including three keynotes, a live Q&A with keynote speaker and IndustryWeek Editor-in-Chief Travis Hessman who will present on digital transformation. In addition, IPC APEX EXPO 2021 offers exhibitor connections, new product demonstrations, IPC Annual Meeting and awards, virtual escape room, trivia competitions and networking opportunities with IPC Hall of Famers and Emerging Engineer program participants.

More information about IPC APEX EXPO 2021, including details on educational opportunities networking, schedule, travel and more is available at www.IPCAPEXEXPO.org.

North American EMS Industry Sales up 8.5 Percent in December

IPC Releases EMS Industry Results for December 2020

IPC announced today the December 2020 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.10.

Total North American EMS shipments in December 2020 were up 13.5 percent compared to the same month last year. Compared to the preceding month, December shipments rose 8.5 percent.

EMS bookings in December rose 13.2 percent year-over-year but decreased 5.2 percent from the previous month.

December 2020 EMS book to bill graph

View graph in pdf

“The EMS market reported strong growth to close out 2020. Both orders and shipments showed double digit growth over December 2019,” said Shawn DuBravac, IPC’s chief economist. “For the year, bookings outpaced shipments, a trend that continued in the month of December. A small backorder in shipments should balance in the first quarter.”

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.

North American PCB Industry Sales up 4.5 Percent in December

IPC Releases PCB Industry Results for December 2020

IPC announced today the December 2020 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.05.

Total North American PCB shipments in December 2020 were up 4.5 percent compared to the same month last year. Compared to the preceding month, December shipments rose 9.8 percent.

PCB bookings in December rose 9.2 percent year-over-year and increased 9.1 percent from the previous month.

“PCB orders and shipments ended 2020 on a positive note. Order flow outpaced shipments for the second consecutive month. For the year, orders were up 4.5 percent while shipments increased 2.4 percent,” said Shawn DuBravac, IPC’s chief economist. “Recent reports of spot semiconductor shortages might curtail PCB orders in the near-term, but demand continues to look solid.”

December 2020 book to bill ratio chart 1
December 2020 book to bill ratio chart 2

 

View charts in pdf

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 Applauds U.S. Defense Department for Establishing New Defense Electronics Consortium

IPC, the global association of electronics manufacturers, is applauding the U.S. Department of Defense (DoD) for establishing a new Defense Electronics Consortium (DEC).

The DoD recently awarded $3.9 million to the U.S. Partnership for Assured Electronics (USPAE) to establish and manage the consortium, through which industry and academia will work with DoD to solve the government’s electronics-related challenges. USPAE is an independent, nonprofit  subsidiary of IPC.

IPC President and CEO John Mitchell said, “As a global organization, IPC believes all nations should take steps to ensure trusted supply chains for electronics related to essential government functions such as national security.

“Electronic systems and devices are at the heart of today’s defense and security systems, and DoD is wise to create a mechanism for having visibility into – and relationships across – the entire electronics manufacturing ecosystem,” Mitchell added. 

The USPAE’s affiliation with IPC provides connections to about 2,000 U.S. member companies across all parts of the supply chain, as well as relevant research and academic institutions. IPC, in collaboration with U.S. electronics manufacturers, created USPAE to support industry partnership with the U.S. government. Due to the sensitive nature of some of the work being done through USPAE, appropriate firewalls have been put in place between the organizations.  

The DEC’s first project will be an effort to accelerate the adoption of lead-free electronics in defense systems. Industry experts believe a five-year, $40 million investment in a public-private program would yield more than $100 million in U.S. defense savings per year and improve military readiness and overall innovation. The Congress has provided $15 million for such efforts since FY 2020.

IPC Welcomes President Biden’s “Buy American” Executive Order

IPC welcomes the “Buy American” Executive Order signed today by U.S. President Joe Biden. The COVID-19 pandemic has illustrated starkly the importance of building robust domestic manufacturing capabilities that the United States lacks today.   

According to a White House statement, the Executive Order will:

  • “Close current loopholes” in domestic content and purchasing requirements.
  • Increase transparency and oversight of potential waivers to “crack down on unnecessary waivers.”
  • Reinvigorate the U.S. Manufacturing Extension Partnership and other federal mechanisms to better connect small- and medium-sized enterprises to contracting and subcontracting opportunities.
  • Appoint a new senior leader in the Executive Office of the President in charge of the government’s Made-in-America policy initiative.

IPC President and CEO John Mitchell said, “The Executive Order is a meaningful milestone on the road to our manufacturing future. IPC encourages President Biden to complement the Executive Order with an ambitious, interagency U.S. manufacturing strategy that builds capabilities domestically and strengthens ties to U.S. allies and trading partners.    

“IPC believes in both free, fair, rules-based international commerce, and in the right of all nations to ensure access to trusted and resilient supply chains for essential goods and services. In signing this Executive Order, President Biden moves closer to achieving the latter, even as a he works with allies and trading partners to promote the former. 

“IPC looks forward to reviewing the Executive Order more closely and engaging with the Director for Made-in-America to provide our input on implementation. IPC also encourages President Biden to continue to take swift action during this pandemic to provide immediate, short-term support to manufacturers and workers in a manner that also provides long-term benefits and builds resilient manufacturing networks in the U.S. and worldwide.”