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PCB | October 02, 2007

PCB shipment down in North America

IPC has released the August findings from its monthly North American Printed Circuit Board (PCB) Statistical Program.
Rigid PCB shipments are down 10.1 percent and bookings are down 5.1 percent in August 2007 from August 2006. Year to date, rigid PCB shipments are down 10.4 percent and bookings are down 13.4 percent. Compared to the previous month, rigid PCB shipments increased 9.8 percent and rigid bookings increased 12.8 percent. The book-to-bill ratio for the North American rigid PCB industry in August 2007 climbed to 1.06.



Flexible circuit shipments in August 2007 were down 24.7 percent and bookings were down 10.0 percent compared to August 2006. Year to date, flexible circuit shipments are down 5.4 percent and bookings are up 6.3 percent. Compared to the previous month, flexible circuit shipments increased 0.4 percent and flex bookings were up 17.7 percent. The North American flexible circuit book-to-bill ratio rose to 1.07 in August.



For rigid PCBs and flexible circuits combined, industry shipments in August 2007 decreased 11.1 percent from August 2006, and orders booked decreased 5.4 percent from August 2006. Year to date, combined industry shipments are down 10.1 percent and bookings are down 12.3 percent. Compared to the previous month, combined industry shipments for August 2007 are up 9.2 percent and bookings are up 13.1 percent. The combined (rigid and flex) industry book-to-bill ratio in August 2007 grew to 1.06.

“While the industry is still around 10 percent below last year's sales levels, it is holding steady," said IPC President Denny McGuirk. “Bookings looked especially strong in August, which indicates the potential for strong sales over the next quarter," he added.



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 two to three months.



Book-to-bill ratios and growth rates for rigid PCBs and flexible circuits combined are heavily affected by the rigid PCB segment. Rigid PCBs represent an estimated 88 percent of the current PCB market in North America, according to IPC's World PCB Production and Laminate Market Report for the Year 2006.

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