North American EMS Industry Witnessed 14.3% Growth in April 2023

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In a recent announcement, IPC revealed the findings from its North American Electronics Manufacturing Services (EMS) Statistical Program for April 2023. The book-to-bill ratio for the month stood at 1.21. April 2023 witnessed a significant rise of 14.3 percent in total North American EMS shipments compared to the same period last year. Additionally, shipments in April increased by 5.5 percent when compared to the preceding month.

To provide a visual representation of the industry's performance, the following bar graph illustrates the growth in North American EMS shipments in April 2023 compared to the previous year and the preceding month.

However, EMS bookings in April experienced a decline of 6.1 percent year-over-year and a decrease of 1.2 percent from the previous month.

Shawn DuBravac, IPC's chief economist, noted, "EMS orders continue to trend downward," highlighting that April's book-to-bill ratio is the weakest recorded since the beginning of 2021.

Companies participating in IPC's North American EMS Statistical Program have access to detailed findings, including EMS sales growth categorized by production type and company size tier, order growth and backlogs segmented by company size tier, vertical market growth, the EMS book-to-bill ratio, 3-month and 12-month sales outlooks, and other relevant data.

The book-to-bill ratio is 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 exceeding 1.00 suggests that current demand surpasses supply, indicating positive prospects for sales growth in the next three to twelve months. Conversely, a ratio below 1.00 indicates the opposite scenario.

For a meaningful view of industry growth, year-on-year and year-to-date growth rates are the most significant indicators. Month-to-month comparisons should be approached with caution, as they may reflect seasonal effects and short-term volatility. Since bookings tend to be more volatile than shipments, changes in the book-to-bill ratios on a monthly basis may not be significant unless a trend of more than three consecutive months is evident. It is essential to consider changes in both bookings and shipments to comprehend the factors driving fluctuations in the book-to-bill ratio.

IPC's monthly EMS industry statistics are derived from data provided by a representative sample of assembly equipment manufacturers selling in the USA and Canada. The EMS book-to-bill ratio is published by IPC at the end of each month.

Although the news article is based on information from May 25th, as of the current date of May 30th, the events and statements mentioned should be presented in the past tense.

Click here to know more about the North American EMS Industry for April 2023.

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