Electronics Industry Continues to Show Resiliency Despite Rising Labor Costs and Recruiting Difficulties

IPC releases January economic outlook and sentiment of the global electronics supply chain reports

According to IPC’s January Sentiment of the Global Electronics Manufacturing Supply Chain report, 75 percent of electronics manufacturers are experiencing rising material costs, while 74 percent indicate that labor costs are on the rise. At the same time, profit margins, inventory from suppliers and ease of recruitment are presently declining, though ease of recruitment is rising at a faster pace in APAC and Europe than in North America.

With potential risks on the horizon including the threat of weak product demand leading to undesirably high levels of inventory, overall industry sentiment shows surprising resiliency per the January report.

In IPC’s January Economic Outlook report, IPC’s Chief Economist Shawn DuBravac forecasts a looming recession in both the United States. and throughout

Europe, but timing is still uncertain. On the positive news front, both the United States and Europe reported better economic growth during Q4 2022 than had been expected, but both economies are slowing.

“In the last month, we have marginally raised our forecasts for economic growth for both the U.S. and Europe but our expectations remain muted," said DuBravac. "We expect the U.S. economy to grow 0.5 percent in 2023 (up from 0.3 percent last month) and we expect Europe will decline 0.1 percent in 2023, up from last month’s forecast of a 0.3 percent decline. The loosening of strict COVID restrictions in China will also add growth there and we now expect China’s economy to expand 4.7 percent in 2023.”

View the full reports: 

Coreen Blaylock, Lockheed Martin Missiles and Fire Control, Earns IPC Excellence in Education Award

In recognition of her significant contributions and leadership in workforce development while building a culture of continuous learning within her organization and the electronics industry, Coreen (Cory) Blaylock, Lockheed Martin Missiles and Fire Control, earned an IPC Excellence in Education Award at IPC APEX EXPO 2023.

A technical trainer with experience in all aspects of coordinating and delivering technical training, Blaylock served as a Certified IPC Trainer for IPC J-STD-001, Requirements for Soldered Electrical and Electronic Assemblies. Her expertise in partnering with business groups and organizations to provide strategic solutions that align people and technical training initiatives to business goals led to the establishment of a nationally recognized apprenticeship program as well as a partnership with a local college to provide electronics training. Blaylock’s work has greatly improved the quality, effectiveness, and efficiency of training at Lockheed in Lufkin, and serves as a model for global electronics training.      

Three Industry Rising Stars Recognized at IPC APEX EXPO 2023

In recognition of their leadership roles and support of IPC standards, education, advocacy, and solutions to industry challenges, three of the industry’s best and brightest were presented with an IPC Rising Star Award at IPC APEX EXPO 2023. Award recipients were Sarah Czaplewski-Campbell, Paige Fiet, and Christina Trussell.                                                                        

Sarah Czaplewski-Campbell is a senior PCB reliability engineer and master inventor at IBM. An active participant in IPC standards committees, she received a Distinguished Committee Service Award for her contributions to the development of IPC-9121-A, Troubleshooting for Printed Board Fabrication Processes. Czaplewski-Campbell completed the IPC Emerging Engineers program in 2022 and currently serves on the IPC APEX EXPO technical program committee, reviewing technical content and chairing technical sessions. A contributor to the technical conference, she was awarded Best Paper in 2021.                                                                                                              

Paige Fiet, TTM Technologies, was IPC’s first Student Director on the IPC Board of Directors. She currently serves as vice-chair of the 5-33B Solder Mask Performance Task Group and co-chair of the 7-24A Printed Board Process Effects Handbook Task Group, a member of the IPC APEX EXPO Technical Conference Program Committee and serves on an additional six standards development committees. She completed the IPC Emerging Engineer Program this year.                                                     

Christina Trussell, Blue Origin, joined the IPC/WHMA-A-620 committee in 2018. She currently serves as vice chair of the 7-31FS IPC WHMA-A-620 Space and Military Electronic Assemblies Addendum Task Group, responsible for the IPC/WHMA-A-620 Space Addendum. Trussell also participated as a judge for the 2021 IPCEF Scholarships and served on a career panel for high school and college students at the 2021 APEX EXPO virtual event. She completed the IPC Emerging Engineer Program this year.                                                                                     

“We are thrilled to recognize the accomplishments of our Rising Stars and to take this opportunity to thank them for their contributions,” said John W. Mitchell, IPC president and CEO. “We are privileged that Sarah, Paige, and Christina have chosen to share their knowledge and expertise with us and with the entire global electronics manufacturing industry.”

Three Long-time IPC Volunteers Receive Dieter Bergman IPC Fellowship Award

Three IPC volunteers who have fostered a collaborative spirit, made significant contributions to standards development, and have consistently demonstrated a commitment to global standardization efforts, were presented with a Dieter Bergman IPC Fellowship award at IPC APEX EXPO 2023. Curtis Grosskopf, Nick Koop, and Thomas Marktscheffel were chosen as award recipients because they embody the work ethic and spirit of the late Dieter Bergman, an industry pioneer and icon. As part of the award, they will bestow Dieter Bergman Memorial Scholarships on the university or college of their choice.  

Curtis Grosskopf, IBM, has been active on standards development committees since 1989 when he served on the B-10a Plastic Chip Carrier Cracking committee. He has participated in several revisions of the standards associated with that committee, IPC/JEDEC-J-STD-020 and IPC/JEDEC-J-STD-033. Currently serving on several committees, Grosskopf leads the reviews of the process sensitivity standard, J-STD-075. He served as chair and vice-chair of the 2-15f Product Discontinuance committee and led the generation of J-STD-046 and J-STD-048 and is currently leading the addition of XML schemas to each standard to automate the transfer of notices. He chose the University of Wisconsin-Madison, College of Engineering, to receive the Dieter Bergman memorial scholarship.

Nick Koop, TTM Technologies, was instrumental in the creation of IPC-6013.  By 2021, IPC-6013 had undergone five revisions reflecting industry needs. Koop was involved with additional specifications and expanded his contributions beyond flex circuits into rigid PCBs, raw materials, final finishes, and common terminology. In this fast-changing technical environment, he has been instrumental in keeping specifications current. Koop has chosen the University of Minnesota -- College of Science and Engineering to receive the memorial scholarship.

Thomas Marktscheffel, ASMPT GmbH & Co. KG, is the co-leader of the 2-17 Connected Factory Initiative Subcommittee and the 2-17A IPC-CFX Standard Task Group. He is directly responsible for several key updates to the growth of IPC-CFX and was instrumental in the development of both the IPC-CFX and HERMES standards. He has chosen the University of Karlsruhe/Karlsruher Institut für Technologie (KIT), for the memorial scholarship.                 

“The recipients of this year’s Dieter Bergman Fellowship award epitomize the spirit of fellowship in leading and working with volunteers from around the world, and we are fortunate that they have chosen to share their considerable talent and expertise,” said John W. Mitchell, IPC president and CEO. “We are glad to be able to honor their volunteerism and assist future engineers with this award.”

North American EMS Industry Down 2.7 Percent in December

IPC releases EMS industry results for December 2022

IPC announced today the December 2022 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.36.

Total North American EMS shipments in December 2022 were down 2.7 percent compared to the same month last year. Compared to the preceding month, December shipments increased 5.8 percent.

EMS bookings in December decreased 22.7 percent year-over-year and decreased 2.9 percent from the previous month.

“The December results provide us with the final 2022 figures — for the year, shipments were up 4.5 percent while orders were down 3.7 percent,” said Shawn DuBravac, IPC’s chief economist. “Looking forward, the economic climate is set to deteriorate in the first half of 2023. Despite this, overall industry demand appears to be holding up and backlogs appear healthy.”

December 2022 EMS book to bill 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.

North American PCB Industry Sales Down 1.7 Percent in December

IPC releases PCB industry results for December 2022

IPC announced today the December 2022 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 0.87.

Total North American PCB shipments in December 2022 were up down 1.7 percent compared to the same month last year. Compared to the preceding month, December shipments dropped 5.1 percent.

PCB year-to-date bookings in December were down 26.5 percent compared to last year. December bookings were up 8.1 percent compared to the same month last year.

“Some of the weakness in this month's book-to-bill reflects uneven shipments figures in recent months,” said Shawn DuBravac, IPC’s chief economist. “December results showed a second consecutive month of improvement. For the year, orders were down 6.5 percent while shipments were up 10.1 percent.”

December 2022 book to bill chart 1
December 2022 book to bill 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.

Three Industry Leaders Receive IPC President’s Award

In recognition of their leadership and their significant contributions of time and talent to IPC and the electronics manufacturing industry, three IPC volunteers were presented with the IPC President’s Award at IPC APEX EXPO in San Diego, Calif on January 24, 2023. Recipients were Steven Bowles, Lockheed Martin; Stan Rak, SF Rak Company; and Savita Ganjigatti, Sienna ECAD Technologies Private Limited.                                                                                                      

Steven Bowles is a member of more than 30 standards development committees, holding leadership roles as Chair of 3-10 Printed Board Base Materials, D-13 Flexible Circuits Base Materials, D-15 Flexible Circuits Test Methods, and D-11 Flexible Circuits Design. He is the Chair Emeritus of 2-30 Terms and Definitions Committee. Bowles is also a member of the Committee Chairman’s Council and a Lifetime Member of IPC’s Technical Activities Executive Committee (TAEC). He is a member of the Lead-Free Electronics Risk Management, (PERM) Council, a Mentor in IPC’s Emerging Engineer Program, and was the very first recipient of IPC’s Rising Star Award in 2015. Winner of many committee leadership and committee service awards, Bowles also serves as an IPC standards committee A-Team leader.                                             

Stan Rak is the chair of the IPC APEX EXPO 2023 Technical Program Committee (TPC) where he has served for six Technical Conferences in different roles, working closely with IPC staff and industry experts on program development.  Developments include the expansion and strengthening of the TPC, the introduction of Special Sessions designed to stimulate audience participation in emerging fields and assisting with the transition to a digital document format for improved communications with authors.  Rak has contributed to the inaugural releases of the standards, IPC-5262, IPC J-STD-001GA/IPC-A-610GA, and IPC-7093. He received the IPC Rising Star Award in 2016 for IPC-related contributions to the automotive electronics manufacturing industry.                                                                                                                 

Savita Ganjigatti has been involved in the industry for more than 30 years and served as a steering committee member for the IPC 2022 Global Design Competition, representing the Asia Pacific region. A program panel member of the IPC Global Thought Leadership Program, she also serves on the IPC India Technical Advisory Committee, was instrumental in starting the PCB competition in that region and conducted many design contests. Ganjigatti was a critical in the development of the Women in India Electronics group, paper presentations, and standards reviews facilitated by IPC India. She helped to implement “PCB Design Engineering” as an elective at several Indian universities, and she is actively involved in skill development initiatives of the Indian central government.

“The leadership and expertise of Steven, Stan, and Savita sets the standard for building electronics better,” said John W. Mitchell, IPC president and CEO. “By presenting them with IPC President’s Awards, we are showing our appreciation for their significant contributions to IPC and the global electronics manufacturing industry.”

IPC Honors Zentech Manufacturing, Inc. and AT&S with Corporate Recognition Awards

IPC presented its highest corporate honors to two IPC member companies, Zentech Manufacturing, Inc. and AT&S during the IPC Annual Meeting/Awards Ceremony at IPC APEX EXPO 2023. The Peter Sarmanian Corporate Recognition Award was presented to AT&S and the Stan Plzak Corporate Recognition Award was presented to Zentech Manufacturing, Inc.                                                      

The Peter Samarian Corporate Recognition award, named for a former IPC Board Chairman, recognizes an IPC-member company in the printed board industry (PCB) that has supported IPC through participation in technical and management programs while providing leadership for the industry.

Members since 1990, AT&S staff have supported IPC events in Europe, including keynote addresses at the Embedded Conference in 2013 and the Automotive Electronics Workshop in 2016. The company is highly engaged with IPC’s Government Relations efforts in Europe, including our recent efforts in supporting the advanced packaging initiative and advocacy for the European Chips Act. AT&S staff recently shared their expertise and knowledge on advanced packaging as program panelists in IPC's first Advanced Packaging Symposium.

Named for former IPC Board Chairman and founding member of the IPC Electronics Manufacturing Services Industry Management Council, the IPC Stan Plzak Corporate Recognition Award honors an IPC-member company in the electronics assembly industry (EMS) that actively contributes to the industry while supporting IPC technical and/or management programs.   

IPC members since 2010, Zentech Manufacturing, Inc. contributes to IPC through the Government Relations Committee, Electronics Program Management Certification with Zentech staff being instrumental in its development and launch, and the EMS Management Council. Two of their three facilities were the first two of nine total companies certified under the EMS QML program. A staunch advocate for IPC, Zentech staff testified before Congress several years ago urging common-sense changes to the U.S. Securities and Exchange Commission (SEC) proposed rule on conflict minerals.

Zentech is a consistent contributor to IPC's industry intelligence program participating in studies such as the EMS Monthly Statistical Program, EMS Annual Study, Assembly Quality Benchmark Study, EMS Monthly, North American Labor Pool Study, and the Lead-Free Study.

More than 151 Zentech staff members are either Certified IPC Application Specialists or Certified IPC Trainers to such standards as IPC J-STD-001, IPC-A-600, IPC-A-610, IPC/WHMA-A-620 and IPC-7711/21.

“IPC benefits tremendously from Zentech’s and AT&S’s leadership, knowledge and expertise,” said John W. Mitchell, IPC president and CEO. “For many years, both organizations have consistently provided staff resources to standards development and other IPC programs and initiatives. IPC is privileged to have them in our membership; their involvement in IPC has directly contributed to IPC’s global growth in the electronics industry.”

IPC’s Highest Honor, the Raymond E. Pritchard Hall of Fame Award Presented to Industry Leaders Garry McGuire and Teresa Rowe

In recognition of their extraordinary contributions to IPC and the electronics manufacturing industry, Garry McGuire, NASA and Teresa Rowe, IPC, were both inducted into the IPC Raymond E. Pritchard Hall of Fame at IPC APEX EXPO 2023. IPC’s most prestigious honor, the Hall of Fame Award is given to individuals who have provided exceptional service and advancement to IPC and the electronics industry.

Garry McGuire began his relationship with IPC in August of 1996, participating on the 5-22f IPC-HDBK-001 Task Group, a standards development committee on which he still serves. In addition to this task group, McGuire is currently active on an additional 30 standards development committees.

A past recipient of the IPC President’s Award, McGuire’s contributions to IPC standards have been extraordinary. Said IPC President and CEO John Mitchell of McGuire’s accomplishments, “Those who work closely with Garry tell me that he doesn’t need to be the loudest voice in the room, but makes his expertise known with an unassuming quiet strength, offering his knowledge and experience to get the job done. He is respected as a subject matter expert, always ready to move the industry forward as a strong advocate for the development and use of IPC standards and their space addendums.”

The second Hall of Fame Inductee, Teresa Rowe, spent decades participating in standards development activities before coming on board as an IPC staff member.

Prior to joining IPC, Rowe participated on approximately 25 IPC committees and served as chair of the 5-22 Soldering Subcommittee, co-chair of the 5-22a J-STD-001 Task Group, chair of 5-22bt J-STD-001 Technical Training Committee and chair of the 7-34t IPC-7711/7721 Technical Training Committee. She is certified as an IPC Master Trainer (MIT) for IPC J-STD-001, IPC-A-610, IPC-A-620 and IPC 7711/7721 standards.

“Committee members, IPC staffers and anyone who meets Teresa will tell you that she exemplifies the spirit of IPC – integrity, performance and collaboration,” said Mitchell. “Fellow IPC volunteers describe her as energetic and passionate about getting young engineers involved in the industry, that she welcomes all those interested in standards development, and that her leadership skills are exemplary.

“Both Garry and Teresa are true leaders and innovators in the global electronics industry and has made immense and long-lasting contributions to IPC and to electronics manufacturing,” Mitchell added. “We are thrilled to welcome them both as the newest inductees in the IPC Hall of Fame.”

IPC Announces New Board Members at IPC APEX EXPO 2023

At the 66th IPC Annual Meeting on January 24, held in conjunction with IPC APEX EXPO 2023, the IPC Board of Directors announced new and second-term members. Board members serve a four-year term, and the student board member serves a one-year term.

          The newly elected Board Members are:

  • First-time Board Member: Paul Baldassari, Executive Vice President, Worldwide Operations, Flex
  • First-time Board Member: Meredith LaBeau, Chief Technology Officer, Calumet Electronics
  • Second-term Board Member: Foo-Ming Fu, Chairman and CEO, HaiNa Cognitive Connections (HCC)
  • Second-term Board Member: Carsten Salewski, Executive Board Member, Sales, Marketing and International Business, Viscom AG
  • Student Board Member: Henry Crandall, University of Utah

"IPC is privileged to add these outstanding industry professionals to our current slate of Board members,” said John W. Mitchell, IPC president and CEO. “We look forward to working with them as we work to advance the global electronics manufacturing industry to build electronics better.”

  In addition to Board election announcements, IPC honored three outgoing Board Members:

  • Nilesh Naik, Eagle Circuits
  • Peter Cleveland, Taiwan Semiconductor Manufacturing Co.
  • Hannah Nelson, Valparaiso University

Added Mitchell, “IPC expresses its sincere gratitude to Nilesh, Peter and Hannah for their dedicated service to the IPC Board. All three shared their expertise with IPC and industry – we thank them for imparting their knowledge and helping guide IPC to best serve our members and the global electronics community.”

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