IPC announced today the November 2022 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.00.

Total North American PCB shipments in November 2022 were up 26.1 percent compared to the same month last year. Compared to the preceding month, November shipments rose 13.1 percent.

PCB year-to-date bookings in November were down 4.1 percent compared to last year. November bookings were up 0.1 percent compared to the same month last year.

“Shipment volume continues to recover while order volume remains muted, continuing a theme that has played out much of the year,” said Shawn DuBravac, IPC’s chief economist. “Shipments are up 11.4 percent year-to-date, while orders are down 4.1 percent.”

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 November 2022 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.38.

Total North American EMS shipments in November 2022 were down 0.6 percent compared to the same month last year. Compared to the preceding month, October shipments decreased 8.8 percent.

EMS bookings in October decreased 9.1 percent year-over-year and decreased 6.6 percent from the previous month.

“The industry recorded a decline in orders for the second consecutive month, but shipments were also subdued, keeping the book-to-bill elevated,” said Shawn DuBravac, IPC’s chief economist. “Shipments are roughly 15 percent below what we would expect given recent order volume, likely a sign of continued supply chain challenges.”

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.

According to IPC’s November Sentiment of the Global Electronics Manufacturing Supply Chain report, 80% of electronics manufacturers are experiencing rising material costs, while 77% indicate that labor costs are on the rise. At the same time, ease of recruitment, profit margins, and inventory from suppliers are presently declining.

“Over the next six months, manufacturers expect to see increases in both labor and material costs, although somewhat to a lesser extent,” said Shawn DuBravac, IPC chief economist. “While supplier inventory is expected to improve, ease of recruiting and finding skilled talent and profit margins are likely to remain challenging.”

Despite murky global manufacturing sentiment, the manufacturing sector continues to hold up well, according to IPC’s November Economic Outlook report. The slowdown has brought demand and production back into balance and enabled many manufacturers to focus on backlogs.

“Though we have seen some growth, we continue to remain somewhat cautious about the economic outlook,” added DuBravac. “Consumers continue to shift away from purchasing durable goods and return to services, and this trend is likely to continue.”

Additional data from the November economic outlook report shows that there continues to be significant economic uncertainty and this will continue to exert downward pressure on economic activity of both consumers and businesses. The ongoing slowdown will continue in the coming quarters. “We are looking closely at any change in the rate of that slowdown,” DuBravac added.    

View the full reports: 

• Monthly Economic Outlook
• Current Sentiment of the Global Electronics Manufacturing Supply Chain