IPC has announced that total North American EMS shipments were down 2.4% in June 2024 compared to the same month last year. Compared to the preceding month, June shipments decreased 3.3 percent. EMS bookings in June decreased 3.5 percent year-over-year and decreased 2.8 percent from the previous month. The book-to-bill ratio stands at 1.32.
“EMS shipments were weak in June, but an even lower order flow kept the book-to-bill ratio stable, masking building weakness in the EMS sector,” said Shawn DuBravac, IPC’s chief economist.
The findings come from its North American Electronics Manufacturing Services (EMS) Statistical Program.
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.
