Quarterly Economic Update and Market Outlook Webinar

Date
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In the face of numerous challenges, the global economy has demonstrated remarkable resilience this year, notably in the United States, where it has surpassed many anticipations. The ongoing efforts of central banks to curb inflation have cast a shadow of uncertainty over economic activities in the back half of the year.

The global growth landscape is fraught with downside risks. Persistent high inflation rates could potentially escalate due to unforeseen shocks, such as escalating tensions in Ukraine. Even without these shocks, and despite a decline in global headline inflation, inflation pressures remain acute and troubling which might necessitate tighter monetary policy. The financial sector might experience turbulence as markets adapt to policy tightening by central banks. Europe’s economy improved in Q2 but several countries continue to face headwinds. China's economic recovery has decelerated. Despite the downside risks, there are potential for positive surprises.

On October 5 at 11:00 am EDT, IPC will host a free webinar, Economic Update and Market Outlook. Don't miss out on this opportunity to stay up to date on the latest economic developments and gain valuable insights from IPC Chief Economist Shawn DuBravac as he helps you navigate an uncertain economic landscape.

What you will learn/gain from this webinar:

  • Global Economic Snapshot: Gain an in-depth analysis of the current global economic scenario and the critical factors to monitor in the latter half of the year. 
  • Central Bank Perspectives: Understand the potential trajectory of interest and inflation rates, and get insights into the central bankers' strategies for the upcoming year. 
  • Labor Market Outlook: Learn what to anticipate from the labor market, including an analysis of wage pressures and trends.
Online Event

3000 Lakeside Dr.
Suite 105N
Bannockburn, IL 60015
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Online Event

Online Event
3000 Lakeside Dr.
Bannockburn, IL 60015
United States

Electronics Industry Continues to Show Solid Performance Though Materials, Labor and Freight Costs Expected to Rise in 2023

IPC issues February Global Sentiment of the Electronics Supply Chain report

Per IPC’s February 2023 Global Sentiment of the Electronics Supply Chain Report, over the next six months, manufacturers expect to see continued increase in both labor and material costs, although to a lesser extent than previously anticipated. On a positive note, backlogs are expected to decline.

Among other data, survey results show:

  • On average, electronics manufacturers expect labor costs to increase 9.2 percent over 2022 levels; materials costs to rise 9.9 percent during the year and most surprisingly, they expect freight costs to rise 7.2 percent in 2023. “Though manufacturers anticipate freight costs to rise, depressed demand and improving supply chain dynamics are currently pulling freight costs down, a trend that should continue during the year,” said IPC Chief Economist Shawn DuBravac. “Downward cyclical pressures will curtail volume which should keep prices in check. For some companies, declining freight costs are likely to be their most significant cost savings in 2023.” 
  • Regarding digital project initiation, roughly 14 percent reported ERP system implementation and enhancements were their number one project for 2023. Other top projects include equipment/tools/resources/technology investment and upgrades and pursuit of CMMC certification.
  • Profit margins are expected to decline at a significantly higher rate in APAC vs. North America. 42 percent of manufacturers in APEC anticipate profit margins to decline, while on 15 percent of North American manufacturers are expecting the same.

For the report, IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain. View full report.

North American PCB Industry Sales Down 1.2 Percent in January

IPC releases PCB industry results for January 2023

IPC announced today the January 2023 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 0.94.

Total North American PCB shipments in January 2023 were up down 1.2 percent compared to the same month last year. Compared to the preceding month, January shipments dropped 21.7 percent.

PCB year-to-date bookings in January were down 11.4 percent compared to last year. January bookings were down 13.4 percent compared to the same month last year.

“Improvements in the book-to-bill this month were driven in part by weak shipments. PCB order flow continues to deteriorate, though the three-month moving average did improve for the first time in four months,” said Shawn DuBravac, IPC’s chief economist.

January 2023 PCB book to bill ratio chart 1
January 2023 PCB book to bill ratio chart 2

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.

EMS North America Industry Report, January 2023

IPC releases EMS industry results for January 2023

IPC announced today the January 2023 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.35.

Total North American EMS shipments in January 2023 were up 10.1 percent compared to the same month last year. Compared to the preceding month, January shipments decreased 3.7 percent.

EMS bookings in January decreased 4.8 percent year-over-year and increased 1.0 percent from the previous month.

“EMS sector throughput remains on solid footing, but both orders and shipments are showing some downward pressure likely related to weaking macroeconomic fundamentals,” said Shawn DuBravac, IPC’s chief economist.

January 2023 EMS book to bill ratio chart

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.

Registration Now Open for Electrical Wire Processing Technology Expo 2023

Registration is now open for Electrical Wire Processing Technology Expo (EWPTE) an exclusive, free-of-charge* event for the electrical wire harness, wire, coil winding and cable processing industries, to be held at the Wisconsin Center May 16-18, 2023, in Milwaukee, Wis.

Produced by the Wiring Harness Manufacturer’s Association (WHMA) and IPC, EWPTE connects buyers with local, national, and international manufacturers and distributors, thus proving new business opportunities.

Not just an exhibition, EWPTE is a full-scale event featuring a slate of educational and career enhancement opportunities, including professional development courses and technical conference sessions. Subject matter experts will offer learning opportunities on calibration, cleanliness, rework, quality, failure analysis, troubleshooting, wire harness workforce training, and much more.

“Attendees at all career stages can come to EWPTE and leave inspired through PD courses, technical conference sessions, peer-to-peer networking opportunities on the show floor and during refreshment breaks, breakfast events with exhibitors, and an exciting keynote,” said Joe DeMan, WHMA Board Chair. “Our ultimate goal is for attendees take their ideas and innovations developed on-site and turn them into real-world solutions and business opportunities.”

EWPTE will also feature IPCSummerCom, IPC’s standards development committee meetings, to be held May 13-18. Three standards development task groups will meet to discuss wire harness related standards: 7-31f: IPC/WHMA-A-620 Task Group; 7-31fhv: IPC/WHMA-A-620 High-Voltage Cable Task Group and 7-31k/7-31h: Joint meeting of Wire Harness Design Task Group and IPC-HDBK-620 Handbook Task Group.

For more information on EWPTE, including full descriptions of educational content and *pricing on a special technical conference session or to register, visit www.electricalwireshow.com. To learn more about IPCSummerCom and the Wire Harness Standards Meetings package for $25, visit www.ipc.org/event/ipc-summercom.

Industry Advances in a New Era at IPC APEX EXPO 2023

From the show floor – where 375 exhibitors displayed a multitude of high-tech machinery and in some cases artificial intelligence – including cutting-edge assembly, testing and inspection equipment, software automation, laser systems, additive manufacturing and factory of the future technologies, to dozens of technical conference sessions and PD courses covering such hot-topic tracks as smart factories, PCB fabrication and materials and high-density interconnects, IPC APEX EXPO 2023 was fueled by the possibilities of new advances in electronics manufacturing.

2023 ushered in a re-invigorated group of attendees and exhibitor personnel, drawing in a total number of 6,901 participants.

In keeping with the event’s theme, “Advance in a New Era,” the IPC APEX EXPO Technical Program Committee built a strong program with five tracks, 28 sessions and 72 papers, with peer-reviewed content from 18 countries, detailing original research and innovations from industry experts around the world. “From attendees, I was pleased to hear accolades on technical program offerings, many stating that it was the best conference in years – attendance was at an all-time high in more than a decade,” said IPC President and CEO John W. Mitchell. “The paper presenters, international subject matter experts, eagerly shared their knowledge and expertise and provided attendees with quality technical content not found or presented anywhere else. We are very proud of the technical conference and set the bar high for paper submissions. New this year were two special technical sessions, one on advanced packaging presented by IPC’s Chief Technical Officer Matt Kelly and another on e-Mobility lead by Brian O’Leary, Indium and Jason Schwartz, KYZEN. Both special sessions drew capacity crowds and earned high marks from attendees for their thoroughness of content.” Mitchell added.

More than 100 standards development committees and task groups made significant progress on new and revised documents covering such topics as design, materials, board fabrication, cleaning, coating, assembly, cables and harnesses, printed electronics, connected factory, e-textiles, and more. “Task group meetings began on the weekend prior to official start of the show, and what a weekend it was during back-to-back full-day sessions!  With a record crowd of 175 participants, the 5-22a and 7-31b task groups combined their meetings to work on comment resolution for new revisions of J-STD-001 and IPC-A-610,” said Teresa Rowe, IPC senior director, assembly and standards technology.

From survey responses, the APEX EXPO 2023 experience was resoundingly positive for exhibitors. “IPC APEX 2023 was a big hit for us – the best show in years! Our booth was consistently packed with every demo station in use by customers,” said Davina McDonnell, global marketing manager, Cogiscan. “Our team had meaningful and productive conversations with lots of new contacts and we all left the show energized and excited about what’s in store for the rest of the year. This was the best IPC APEX EXPO we have participated in,” McDonnell added.

Added John Lee, vice president of marketing and brand strategy, Insulectro, “I extend my congratulations to IPC for a superb IPC APEX EXPO 2023. I applaud the association on its continued drive to improve, enhance, and spotlight things that matter to our industry. Insulectro had a super experience as well -- our best exhibiting experience ever!”

Summing up IPC APEX EXPO 2023, Mitchell added, “IPC APEX EPXO is a gathering place for the present and future of electronics, enabling all of us to connect in remarkable ways. We at IPC are profoundly grateful to an industry that has encouraged and supported us in producing IPC APEX EXPO. We never lose sight of the fact that we could not host this event without the dedicated volunteers who share their time, their expertise, and their enthusiasm with all of us. Though IPC APEX EXPO 2023 is in our rear-view mirror, our dedicated events, education, technical, membership, and marketing and sales teams are already preparing for next year’s event which will take place April 6-11, 2024, in Anaheim, California.”

For more information on IPC APEX EXPO 2024, visit www.ipcapexexpo.org.

IPC Introduces New Committee Leader and Committee Volunteer Awards at IPC APEX EXPO 2023

Bob Cooke, Michael Ford, and Christina Rutherford take top honors

In keeping with its commitment to showing appreciation for its strong volunteer community, IPC introduced two new awards in IPC standards development at IPC APEX EXPO 2023. The awards, Committee Leader of the Year and Volunteer of the Year, were named in honor of key leaders and volunteers from IPC standards development efforts. The Hillman-Lambert Award, named for IPC Hall of Famers and longtime standards committee volunteers David Hillman and Leo Lambert, is awarded to volunteers of the year. The Goldman-Kessler Award, named for IPC Hall of Famers, and longtime committee leaders, Patty Goldman and Bernie Kessler, is awarded to leaders of the year.

Nominations for the 2023 awards were open to all volunteers and leaders whose groups had completed their standards projects between October 2021 and October 2022.  The awards were peer-selected, and a nomination committee was formed to review and judge all nomination packets.

The Hillman-Lambert Award was presented to Michael Ford, Aegis Software, and Christina Rutherford, Honeywell International, as the result of a tie vote. Ford received his nomination for his work with the 2-12c Cybersecurity Protection Standard Task Group. Rutherford was nominated for her work with the 7-31f IPC/WHMA-A-620 Task Group.

 The Goldman-Kessler Award was presented to Bob Cooke, NASA Johnson Space Center. Cooke was nominated for his leadership of the 7-31k Wire Harness Design Task Group and the 5-24g Polymerics Standard Task Group.

In addition to Ford and Rutherford, nominees for the Hillman-Lambert Award included Erika Crandall, TE Connectivity; Hermann Eicher, EPT Guglhoer GmbH; Joseph Kane, BAE Systems; Garry McGuire, NASA Marshall Space Flight Center; Zhiqian Sang, Hangzhou Dianzi University; and Wei Wang, New HC3 Technologies Co., Ltd.

In addition to Cooke, nominees for the Goldman-Kessler Award were: Scott Bowles, Lockheed Martin; Constantino Gonzalez, Acme Training and Consulting; Thomas Marktscheffel, ASMPT GmbH & Co. KG; and Victor Xu, Huawei Technologies Co., Ltd.

“Volunteerism is the bedrock of our standards development activities,” said Teresa Rowe, IPC senior director, assembly and standards technology. “The new standards development committee awards program is entirely volunteer-driven, created to recognize the best-of-the-best in our standards development activities.”

Committee Leader and Volunteer of the Year awards will be presented on an annual basis, with next presentation taking place at IPC APEX EXPO 2024 in Anaheim, Calif. For more information on the awards, contact Rowe at TeresaRowe@ipc.org.

 

IPC Design Competition Champion Crowned at IPC APEX EXPO 2023

Last week at IPC APEX EXPO in San Diego, Calif, five competitors squared off to determine who was the best of the best at PCB design.

As finalists in the second annual IPC Design Competition, these five intrepid designers were invited to the finals heat at IPC APEX EXPO to compete in a four-hour layout showdown. Provided with a rigid-flex board and a preset bill of materials (BOM), competitors flexed their skills by routing the board to near completion.

At the end of the four-hour round, each competitor delivered their project file to the judges who convened to review designs, with a winning PCB design going to Sathishkumar Vijayakumar, senior PCB design engineer at Tessolve Semiconductor Pvt Ltd. in Bengaluru, India.

“Sathish exhibited a deep understanding of all technologies presented in the finals design – from a thoughtful usage of given flex layers to well-rounded approach to routing for radio frequency, he wisely chose to spend his limited time routing ‘around’ the board; not focusing on one area more than necessary to demonstrate his skills,” said Patrick Crawford, manager, IPC design standards and related industry programs/PCB design competition lead. “Sathish was a competitor in the IPC India PCB Design Competition, where he also took first place. We congratulate Sathish on his back-to-back wins!”

Said Vijayakumar of his win, “This is one of the greatest milestones in my career and I am very proud of being in this world competition. I believe the proper training I received along with knowledge gained from working on different types of PCBs over the years helped me a lot in winning the competition.”

Second place went to Adam Thorvaldson, CID, lead PCB Designer, at Innovex Design Service, LLC in Oldsmar, Fla.

“It is abundantly clear that Adam is a talented and creative designer, and it was a lengthy discussion among the judges regarding differentiators between his and Sathish’s design – it was really, really close,” added Crawford.  “Adam attempted a significant amount of routing and his design rule check came back with fewer critical issues than other competitors, relative to his amount of completed nets.”

Runners-up included: Jesus Castane, CID+, senior PCB designer, CMR Surgical in Manchester, England; Paul Brionez, CID+, senior PCB design layout engineer, Wisk Aero in Mountain View, Calif.; and Harish G., senior engineer, R&D-Mobility, Exicom Tele-Systems Ltd. in Bengaluru, India.

To learn more about IPC's IPC design competitions and PCB design-related courses, visit www.ipc.org/standards/ipc-design.