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North American EMS and PCB shipments up in October

IPC's latest results
North American EMS and PCB shipments up in October

EMS bookings in October increased 7.8 percent year-over-year and decreased 1.5 percent from the previous month.

“EMS orders and shipments remained above trend in October, despite a small reversal relative to last month,” said Shawn DuBravac, IPC’s chief economist. “Supply chain constraints have eased but shipment growth remains slightly constrained as some ongoing supply chain issues persist.”

North American PCB shipments

The organisation also published the results of its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.07.

Total North American PCB shipments in October 2022 were up 9.0 percent compared to the same month last year. Compared to the preceding month, October shipments fell 13.3 percent.

PCB year-to-date bookings in October were down 4.5 percent compared to last year. October bookings were down 22.5 percent compared to the same month last year.

“Both order and shipment data in October were relatively weak but these data come on the heels of a strong September which has left the book-to-bill in positive territory,” said Shawn DuBravac, IPC’s chief economist. “Strong bookings in September suggest shipments should remain solid in the month ahead.”

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.

ipc.org 

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