The increasing complexity of electronics manufacturing requires embracing data analytics to manage electronics factories, according to a new white paper from IPC’s Chief Technologist Council (CTC), Outlook for Data Analytics in the Electronics Manufacturing Industry.

Multiple factors challenge the status quo of how electronics manufacturers are managed, including the blurring of the line between semiconductor and circuit manufacturing and the rapidly increasing demand for additional electronics manufacturing caused by the adoption of high-performance computing, electric vehicles, and consumer electronics, among other challenges. These pressures require manufacturers to pay closer attention to data analytics to increase productivity and reduce error and waste.

This white paper explores important aspects coming out of the rise and need for data analytics in electronics manufacturing, including:

• The types of machine data that can be collected
• Addressing difficulties with assembling data for analysis
• Immediate issues and future trends facilities can see through data analytics
• Removing the barriers for achieving real-time data collection using open-source tools such as IPC-CFX
• Skills needed for data interpretation

The white paper also describes five top use cases:

• Faster reaction to current conditions
• Advanced prevention of downtime
• Automatic process drift correction using feedback between machines
• Data-driven feedback to design, simulation and planning
• Advanced quality prediction

“Growing complexity in electronics manufacturing is making the use of data analytics more crucial than ever. As the cost of data collection drops and analytics technology advances, the ability to leverage data for real-time insights is transforming operations, thus making manufacturing smarter, more efficient, and highly adaptive to today's challenges. This trend will continue to accelerate and provide new opportunities for operational excellence, allowing electronics manufacturers to lead the way on the global stage,” said Tim Burke, Ph.D., Arch Systems and primary white paper author. “The CTC white paper provides direction for every electronics manufacturer looking to understand how to make better use of their operational data.”

Download the report.

IPC announced today the January 2024 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 0.93.

Total North American PCB shipments in January 2024 were down 3.9 percent compared to the same month last year. Compared to the preceding month, January shipments were down 7.9 percent.

PCB bookings in January were down 8.6 percent compared to the same month last year. January bookings were up 11.1 percent compared to the preceding month.

“PCB orders started the year on a weaker note,” said Shawn DuBravac, IPC’s chief economist. “Diminished PCB orders, coupled with shipments that exceeded expectations for the month, worked in tandem to suppress the book-to-bill ratio.”

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 announced today the January 2024 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.20.

Total North American EMS shipments in January 2024 were up 2.6 percent compared to the same month last year. Compared to the preceding month, January shipments decreased 2.7 percent.

EMS bookings in January decreased 12.0 percent year-over-year and decreased 2.2 percent from the previous month.

“January EMS performance aligns with the current trend, with shipments still exceeding a softer order landscape,” said Shawn DuBravac, IPC’s chief economist.

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.

Sentiment among electronics manufacturers remains positive, despite minor setbacks during January, according to IPC’s February Sentiment of the Global Electronics Manufacturing Supply Chain Report.

When asked about expectations for a recession in 2024 and 2025, industry executives believe there is a 39 percent chance of a recession in 2024 and a 34 percent chance in 2025. Notably, manufacturers in Europe report a 2024 recession would most likely begin in Q1 while those in North America believe it would likely begin in Q2.

Sixty-six percent of electronics manufacturers are currently experiencing rising labor costs, while more than 44 percent report rising material costs. At the same time, ease of recruitment, backlogs, and profit margins remain in contractionary territory.

“While the Materials Cost Index fell one point, the Labor Costs Index rose by five,” said Shawn DuBravac, IPC chief economist. “That’s the highest it’s been since August 2023.

"Electronics industry leaders foresee a 39 percent probability of a recession this year, underscoring the critical need for strategic foresight and agility,” added DuBravac. “The geographical nuances in recession expectations between Europe and North America further illustrate the complex global economic interplay affecting the electronics industry."

Additional survey data show:

• Demand remains in expansionary territory, despite slipping this month and falling one point from 103 to 102.
• The Capacity Utilization Index fell two points, while the Shipments Index dropped five points. The decline in shipments could be weather-related.
• The New Orders Index rose three points to 105, the highest level since November 2023.
• While the current view of demand weakened somewhat, the Outlook for demand improved. The increase was led by strong rises in the Shipments Outlook Index which increased by six points and the Backlogs Outlook Index which rose by five points and moved into expansionary territory.

These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between January 15 and January 31, 2024.

Read the full report here.