PCB | February 19, 2009

German PCB market drops sharply in November 2008

The November 2008 turnover for PCB manufacturers fell to its lowest November-level since this statistic was created, reports the Association of the PCB industry and the ZVEI Association Electronic Components and Systems.
Compared to the previous month, turnover fell by 20.7%; compared to November 2007 by 26.8%. This had an impact on the cumulative turnover for the first 10 months of 2008, which was just above the previous year's figure. The cumulative turnover for January - November was 3.7% lower than during the same period in 2007.

The order inflow fell to the lowest point for years. While in October, orders were just postponed or pushed back, November saw the first cancellations. The November registered only half the order value from October and 40% less than the same month in 2007.

The industry was surprised by the speed with which the situation had changed fundamentally. The short-time work, announced by car manufacturers in November immediately led to deterioration within the order inflow. The uncertainty about further developments is very high. For example, commenced contracts will no longer be completed, until the customer sends new instructions. Such a situation has never occurred before, so that an exact prognosis on the further development is possible.

The book-to-bill ratio has a value of 0.82, which represents the lowest November-value since 1994.

The deteriorating financial situation led to a reduction in the number of employees with 3.6%, compared to November 2007. The industry expects to see further headcount reduction in coming months.

Image source: Wurth


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