IPC Releases April 2023 Findings on North American Printed Circuit Board Industry

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On May 25, IPC unveiled the results of its North American Printed Circuit Board (PCB) Statistical Program for April 2023. The report shed light on the state of the industry during the mentioned period.

One notable highlight was the book-to-bill ratio, which stood at 0.89. This figure, calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period, suggests that demand was trailing behind supply.

Despite this, April saw a positive growth in total North American PCB shipments, with a significant increase of 12.1 percent compared to the corresponding month in the previous year. However, the shipments experienced a decline of 18.4 percent when compared to the preceding month.

The figures for PCB bookings were less encouraging. In April, bookings were down by 9.8 percent in comparison to the same month in the prior year, and a slight decrease of 0.3 percent compared to the preceding month.

Shawn DuBravac, IPC's chief economist, attributed the lackluster PCB orders to weak demand for electronics. DuBravac explained, "Weak demand for electronics has kept PCB orders in check. Shipments are up over seven percent year to date while orders are down nearly eight percent."

IPC's North American PCB Statistical Program offers detailed findings to participating companies. These findings provide insights into sales and orders of both rigid PCBs and flexible circuits. The program includes separate analyses of rigid and flex book-to-bill ratios, growth trends by product types and company size tiers, demand for prototypes, sales growth in military and medical markets, and other pertinent data.

It is crucial to interpret the data in the context of the industry's dynamics. Book-to-bill ratios above 1.00 indicate that demand surpasses supply, hinting at potential sales growth in the upcoming months. Conversely, ratios below 1.00 imply the opposite.

Analysts stress that year-on-year and year-to-date growth rates offer the most reliable perspective on industry performance. Comparisons between consecutive months should be approached with caution due to seasonal effects and short-term volatility. As bookings tend to be more volatile than shipments, changes in the book-to-bill ratio month to month may not hold significance unless a sustained trend over three or more months is evident. Additionally, considering changes in both bookings and shipments is essential for understanding the factors influencing fluctuations in the book-to-bill ratio.

IPC's monthly PCB industry statistics are derived from data provided by a representative sample of manufacturers of both rigid PCBs and flexible circuits operating in the United States and Canada. The organization releases the PCB book-to-bill ratio at the end of each month, providing valuable insights into the state of the North American PCB industry.

Click here to know more about the North American Printed Circuit Board (PCB) Statistical Program for April 2023.