Oct 30, 2010 
PCB Industry Growth Rates and Book-to-Bill Ratios Announced
Rigid PCB shipments were up 18.3 percent while bookings increased 3.0 percent in September 2010 from September 2009. Year to date, rigid PCB shipments were up 20.2 percent and bookings have grown 28.8 percent. Compared to the previous month, rigid PCB shipments increased 14.3 percent and rigid bookings increased 9.3 percent. The book-to-bill ratio for the North American rigid PCB industry in September 2010 remained positive but continued to slip to 1.03.
Flexible circuit shipments in September 2010 were up 21.0 percent, but bookings were down 2.9 percent compared to September 2009. Year to date, flexible circuit shipments increased 10.7 percent and bookings were up 18.8 percent. Compared to the previous month, flexible circuit shipments increased 9.5 percent, but flex bookings decreased 11.2 percent. The North American flexible circuit book-to-bill ratio in September 2010 fell under parity to 0.97.
For rigid PCBs and flexible circuits combined, industry shipments in September 2010 increased 18.5 percent from September 2009, as orders booked increased 2.5 percent from September 2009. Year to date, combined industry shipments were up 19.3 percent and bookings were up 28.0 percent. Compared to the previous month, combined industry shipments for September 2010 increased 13.9 percent and bookings increased 7.4 percent. The combined (rigid and flex) industry book-to-bill ratio in September 2010 remained positive but declined to 1.03.
“The growth in orders over the past year has generated corresponding sales growth in the industry,” said IPC President & CEO Denny McGuirk. “The book-to-bill ratio has turned downward in the past few months primarily because of sales growth, which is a positive reason for the change,” he added. “The year-on-year sales growth rates for both rigid and flex are still in positive double digits.”
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 two to three months.
Book-to-bill ratios and growth rates for rigid PCBs and flexible circuits combined are heavily affected by the rigid PCB segment. Rigid PCBs represent an estimated 89 percent of the current PCB industry in North America, according to IPC’s World PCB Production and Laminate Market Report.
The Role of Domestic Production
IPC’s monthly survey of the North American PCB industry tracks bookings and shipments from U.S. and Canadian facilities, which provide indicators of regional demand. These numbers do not measure U.S. and Canadian PCB production. To track regional production trends, IPC asks survey participants for the percent of their reported shipments that were produced domestically (i.e., in the USA or Canada). In September 2010, 82 percent of total PCB shipments reported were domestically produced. Domestic production accounted for 82 percent of rigid PCB and 82 percent of flexible circuit shipments in September by IPC’s survey participants. These numbers are significantly affected by the mix of companies in IPC’s survey sample, which changed slightly in January, but are kept constant through the remainder of the year.
Bare Circuits versus Assembly
Flexible circuit sales typically include value-added services such as assembly, in addition to the bare flex circuits. In September, the flexible circuit manufacturers in IPC’s survey sample indicated that bare circuits accounted for about 74 percent of their shipment value reported for the month. Assembly and other services make up a large and growing segment of flexible circuit producers’ businesses. This figure is also sensitive to changes in the survey sample, which may occur at the beginning of each calendar year.
Interpreting the Data
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 may reflect cyclical effects. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month may not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in bookings and shipments to understand what is driving changes in the book-to-bill ratio.
The information in IPC’s monthly PCB industry statistics is based on data provided by a representative sample of both rigid and flexible PCB manufacturers in the USA and Canada. IPC publishes the PCB Book-to-Bill Ratio and the PCB Statistical Program Report each month. Statistics for the previous month are not available until the last week of the following month.
IPC (www.IPC.org) is a global trade association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 2,700 member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $1.7 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Arlington, Va.; Garden Grove, Calif.; Stockholm, Sweden; Moscow, Russia; Bangalore, India; and Shanghai, Shenzhen and Beijing, China.
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