On behalf of the electronics industry, I commend the White House for the release today of a sweeping and detailed assessment of the nation’s defense industrial base. The report reflects more than a year of painstaking data collection, sector by sector analysis, and industry engagement. 

IPC and its members look forward to studying the report and its recommendations in the coming days and weeks, and we welcome the report’s larger conclusion that the U.S. electronics industry needs to be strengthened. Moreover, we enthusiastically endorse the report’s support for federal workforce development initiatives.

IPC has a long history of partnership with the U.S. Defense Department and support for a comprehensive approach to shoring the defense electronics supply chain. Earlier this year, IPC championed Section 845 of the FY2019 National Defense Authorization Act which requires the Defense Department to provide Congress an assessment of the defense electronics industrial base by January 31, 2019.

IPC is optimistic that the two reports will complement each other and bring greater focus to the important task of revitalizing key segments of the U.S. electronics supply chain. 

IPC announced today the August 2018 findings from its North American Printed Circuit Board (PCB) Statistical Program. Year-over-year growth continued for industry sales and orders. The book-to-bill ratio for August held steady at 1.05.

Total North American PCB shipments in August 2018 were up 8.7 percent compared to the same month last year. This year to date, shipments are 10.3 percent above the same period last year. Compared to the preceding month, August shipments increased 6.5 percent.

PCB bookings in August increased 6.8 percent year-over-year. Year-to-date order growth was 11.0 percent above the same period last year. Bookings in August were up 9.4 percent from the previous month.

“North American PCB industry sales and orders continued to grow in August compared to the previous month and the same period last year,” said Sharon Starr, IPC’s director of market research. “August was the 12th consecutive month of year-over-year sales growth and the 15th month of continuous order growth. The book-to-bill ratio in August remained above parity (1.0) for the 19th consecutive month, which is a positive indicator of continued growth for the rest of this year.”

Note: The January 2018-March 2018 ratios have been revised since their original publication due to updated data from statistical program participants.


Note: The January 2018-March 2018 growth rates have been revised since their original publication due to updated data from statistical program participants.

View Chart in PDF

Detailed Data Available

The next edition of IPC’s North American PCB Market Report,containing detailed third-quarter 2018 data from IPC’s PCB Statistical Program, will be available in November. The quarterly report presents 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. This report is available free to current participants in IPC’s PCB Statistical Program and by subscription to others. PCB companies that are IPC members doing business in North America are invited to contact marketresearch@ipc.org for information about participating. More information about this report can be found at www.ipc.org/market-research-reports.

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 at the end of each month. Statistics for the current month are normally available in the last week of the following month.

On behalf of the electronics industry, I want to extend my congratulations and appreciation to the governments of the U.S., Mexico and Canada for their many months of tireless negotiations on a new trilateral trade agreement.

The North American electronics supply chain has grown steadily over the last 25 years. In striking an agreement that modernizes the North American Free Trade Agreement (NAFTA) to address the current trade concerns of all three countries, the U.S.-Mexico-Canada Agreement (USMCA) promises to deliver another 25 years of sustainable, mutually beneficial trade.

The USMCA promises to spur even greater integration among the North American economies and strengthen the entire region’s stature as a formidable global manufacturing base. Improving the manufacturing competitiveness of North America, in turn, will unlock more economic growth and job creation, benefiting communities across the continent.

As always, IPC will be working to assess the deal’s likely impacts on our industry, and we will continue to advocate for our members’ interests as the debate goes forward.

On September 13, representatives from the e-textiles ecosystem, including product innovators, material suppliers, electrical engineers and academia, came together for IPC E-Textiles 2018, a first-time e-textiles event for IPC. The workshop was developed by leaders from the e-textiles supply chain, who approached IPC to host a collaborative educational event for two converging industries—textiles and electronics.

“The goal of IPC E-Textiles 2018 was to provide a platform for education and collaboration among a diverse group of professionals interested in producing e-textiles as well as to attract a myriad of market segments, including fashion design, health monitoring, medical, automotive and military/aerospace,” said Chris Jorgensen, IPC director of technology transfer and staff liaison to the IPC D-70 E-Textiles Committee, which is developing IPC international standards for e-textiles.

For an estimated 90 percent of attendees and speakers, this was their first time attending an IPC event. Leaders from the e-textiles sector led interactive and productive discussions on developing business models for e-textiles, materials characteristics and testing, real-world examples of e-textiles usage, how engineers and customers should work together and assembling effective transdisciplinary teams.

The following are the speakers and topics that were covered:

• Stephanie Rodgers, Apex Mills – Textiles and Testing 101; E-Textiles Creations Speedstorming session
• Dan Ledger, Path Collaborative – Picking a Winning Business Model for Smart Textiles
• Diana Wyman, American Association of Textile Chemists and Colorists (AATCC) and Stephanie Rodgers – FYI…Fibers, Yarns, and Inks for E-Textile Products
• Madison Maxey, LOOMIA – Merging Practices, Creating Opportunities
• MaryAlice Gill and Oona Oksjarvi, Jabil Circuit's Nypro Consumer Health Division Clothing+ -- We’re Successful When You’re Successful – How Engineers and Customers Need to Work Together
• Genevieve Dion, Drexel University Center for Functional Fabrics – From Concept to Commercialization: Transdisciplinary Teams for Functional Fabrics
• Milad Alizadeh-Meghrazi, Myant – Healthcare Re-Imagined Through Textiles

In addition to the workshop, IPC hosted a brainstorming session for the e-textiles industry to discuss the standards under development by the IPC D-70 E-Textiles Committee, including draft e-textiles standards on knitted and woven e-textiles and designing printed electronics on textiles, as well as to present IPC with industry issues that could be resolved through IPC solutions.

“The energy and excitement at E-Textiles 2018 was inspiring,” said Stephanie Rodgers, chair of IPC’s D-70 E-textiles committee, and director, research and product development, Apex Mills, said. “It was a truly collaborative effort of disparate groups with one goal in mind – developing the best way to produce an entirely new idea.”   

For more information on how to participate in IPC D-70 E-textile Committee activities or for information on next year’s IPC E-Textiles 2019, contact Jorgensen at ChrisJorgensen@ipc.org.

IPC’s Hand Soldering Competition returns to the United Kingdom and What’s New in Electronics Live on September 25-26, 2018. This year, the competition will be run in association with Advanced Rework Technology Ltd.

Skilled competitors will go soldering iron to soldering iron as they vie for cash prizes:  1st place — £200, plus a trip to the World Hand Soldering Championship at IPC APEX EXPO 2019; 2nd place — £100; 3rd place — £50, and bragging rights as the best hand soldering technician in the United Kingdom.

Hand soldering of high density printed boards demands highly skilled operators to ensure a zero-defect soldering process, and this competition recognizes the best skills in hand soldering complex printed board assemblies. Over two days, participants will compete against each other to build a functional electronics assembly within a 60-minute time limit. Assemblies will be judged on soldering in accordance with IPC-A-610G Class 3 criteria, the speed at which the assembly was produced and overall electrical functionality of the assembly. IPC-A-610 Master Instructor Debbie Wade from Advanced Rework Technology Ltd. Will serve as the judge.

“Many companies take pride in how many IPC Certified Specialists they have on staff and this event is a fun and friendly way to give them an opportunity to let their staff shine,” said David Bergman, IPC vice president of standards and training.

What’s New in Electronics Live 2018 would like to thank the sponsors of the hand soldering competition: Pace Worldwide, Henkel, PM Tech, Somerset Solders and Bofa.

Event attendees who are interested, can stop by booth F66 in Hall 1 at the NEC Birmingham to see the competition or visit with IPC staff to learn about IPC standards, membership and other IPC products.   

John Mitchell, IPC president and CEO, issued the following statement on the decision of the U.S. government to impose additional tariffs on about $200 billion worth of Chinese imports, the third such list announced this year. 

“IPC backs robust efforts by the United States to address discriminatory treatment of U.S. companies by its trading partners. We hold this same position in each of the countries where we have member companies. Trade agreements are meaningful only so long as countries that voluntarily enter into them live up to the obligations they have made.

The United States has longstanding concerns about China’s technology transfer policies. The decision yesterday by President Trump to impose the most far-reaching tariffs yet on Chinese imports will further disrupt the international supply chains of many U.S. electronics companies. These disruptions will increase lead times, raise the cost of production and, in some cases, undermine the global competitiveness of U.S. manufacturing. 

IPC urges the U.S. Trade Representative to intensify efforts to resolve the trade dispute with China through bilateral negotiations and multilateral remedies. We also encourage the U.S. Government to continue its efforts to strengthen the electronics industrial base through a combination of tax, workforce, defense, and R&D policies. Such initiatives are the best way to revitalize the U.S. Electronics supply chain for the long-term.”

Sixty-six percent of manufacturing companies say that their leadership does not have a clear vision for the digital future. As manufacturing moves toward the Smart Factory and Industry 4.0, IPC and i4.0 Today will offer members of the electronics industry an opportunity to learn about the technology and future surrounding Industry 4.0 with a two-day i4.0 Connect Forum, to take place in Silicon Valley, Calif., November 6-7.

"According to statistics, the Industry 4.0 market is projected to reach $152 billion by 2020,” said David Bergman, IPC vice president of standards and training. “Augmented reality, artificial intelligence, robotics, additive manufacturing, and IPC CFX are just a few of the technologies taking us toward Industry 4.0 and the Smart Factory. What does this mean for the electronics industry? What are the benefits and how does it all come together? The i4.0 Connect Forum will address these questions and provide first-hand knowledge from industry leaders who are working to achieve smart manufacturing practices."

Featuring speakers from Siemens, Saline Lectronics, and Koh Young Technology, the i4.0 Connect Forum will provide attendees with first-hand knowledge of the experiences, challenges and solutions industry leaders are taking to achieve truly smart manufacturing. “In a time of rapid and fundamental growth in the manufacturing industry, this Forum will provide insight into how robotics, artificial intelligence and other technologies are creating an Industry 4.0 movement in electronics manufacturing,” added Bergman.

“This event will give attendees an opportunity to listen, learn and contribute towards achieving Industry 4.0 standards, and gain knowledge directly from the experts who will be there to share their experiences. This is a must attend event to help keep you at the forefront of Industry 4.0 in electronics” added Mike Nelson, Group President for i4.0 Today.

For more information on i4.0 Connect Forum or to register, visit www.ipc.org/i4.0-Connect.

In direct response to requests from industry to provide training and certification in various aspects of the electronics industry, IPC is introducing its newest certification course, the IPC Certified Electronics Program Manager (CEPM) Training and Certification. CEPM is a six-week, online, instructor-led course providing all aspects of program management specific to the electronics industry. 

“We’re excited to offer our CEPM course through the e-learning platform IPC EDGE 2.0,” said Dave Hernandez, senior director of learning and professional development. “This course is ideal for existing program managers or engineers who want to advance their expertise and skills in the electronics industry. Because the course is offered online, it offers significant cost savings and flexibility for companies seeking to provide professional development to their top talent.”

The first course will start on October 8, 2018 with two sessions each week for a total of six weeks. The CEPM course will cover:

• Program management
• Project planning
• Team building
• Basic cost accounting practices
• Forecasting and inventory control
• Negotiating contractual terms with customers
• Sales and negotiation skills

IPC’s CEPM course is part of IPC EDGE 2.0 which offers education through online courses, webinars, videos, white papers, personal development, technical knowledge and technical presentations. IPC EDGE 2.0 is convenient and easily accessible, allowing students to learn at their own pace, with knowledge checks within each course to determine next steps.

For more information on the IPC Certified Electronics Program Manager (CEPM) Training and Certification Program, visit https://training.ipc.org/product/certified-electronics-program-manager-cepm-program.

The North American electronics manufacturing services (EMS) industry has an $81 billion served available market with great potential for further growth, according to IPC’s 2018 Annual Report and Forecast for the North American EMS Industry, published this week. An analysis of the market indicates that the North American EMS industry has penetrated only about 28 percent of the total available market based on what OEMs in the region could outsource. Forecasts contributed by New Venture Research predict steady growth for the EMS industry through 2022, both globally and in North America.

The rate of sales growth for the participants in IPC’s North American EMS Statistical Program has increased every year since 2014, reaching 10.5 percent year-over-year in 2017. EMS order backlogs as percentages of sales have also grown steadily over the past five years. The largest vertical market for the program participants in 2017 was industrial electronics, which captured 37 percent of their aggregate sales. Revenue by product type, percentages of domestic production, number of EMS facilities and historical growth trends are also reported.

The report also covers aggregate financial and operational measurements of the participating companies in 2017 by company size tier. The smallest companies reported the highest profit margins, EBITDA and return on value added. An overview of the cost structure of North American EMS companies by size tier delves into percentages of direct labor; direct materials; direct overhead; and sales, general and administrative costs. Other measurements reported include revenue per employee, cash-to-cash cycle time, days sales outstanding, days of supply in inventory and capacity utilization.

The data on sales, orders, production, operations and financial measurements is from 86 companies that participated in IPC’s North American EMS Statistical Program in 2017, most of which are small and medium-sized companies.

The 2018 Annual Report and Forecast for the North American EMS Industry, (at $450 for IPC members and $900 for nonmembers, is available for download in IPC’s online store. For information on IPC market research reports and services, visit www.ipc.org/market-research-reports and www.ipc.org/IndustryData, or contact IPC’s market research team at marketresearch@ipc.org.

IPC invites engineers, researchers, academics, technical experts and industry leaders to submit abstracts for IPC High Reliability Forum to be held May 14–16, 2019 in Hanover (Baltimore), Md.

IPC High Reliability Forum provides presenters and their companies with a notable and cost-effective opportunity to promote their expertise and gain visibility with key engineers, managers and executives across the electronics industry supply chain. Staff from companies such as NASA Goddard Space Flight Center, Honeywell Aerospace, Lockheed Martin Missiles and Fire Control, Motorola and Raytheon have presented papers at past IPC High Reliability Forums.

With a focus on electronics subjected to harsh use environments, expert papers and presentations are being sought on the following topics:

Abstracts summarizing original and previously unpublished work must be submitted for consideration to present. Presentations should be non-commercial and describe significant results from experiments, emphasize new techniques, discuss trends of interest and contain technical and/or appropriate test results. Final presentations should be 45 minutes in length, including time for questions and answers.

To submit an abstract, contact Alicia Balonek, IPC senior director of trade shows and events, at AliciaBalonek@ipc.org.