IPC releases IMS/PCB book-to-bill ratios for October 2006

NOVEMBER 27--IPC--Association Connecting Electronics Industries (Bannockburn, IL, USA; www.ipc.org), a global trade association of 2400 member companies representing all facets of the electronic interconnection industry, including design, printed-circuit-board manufacturing, and electronics assembly, has announced its findings from its monthly Printed Circuit Board (PCB) Statistical Program. The North American rigid PCB industry book-to-bill ratio for October 2006 decreased to 0.99. The North American flexible circuit book-to-bill ratio held steady at 0.91.

These ratios are based on monthly data collected from PCB producers that participate in IPC's monthly PCB Statistical Program. The combined (rigid and flex) industry book-to-bill ratio in October 2006 was 0.99. Some analysts find the separate ratios for rigid and flex more meaningful than the combined ratio because of the divergence in recent years between the rigid PCB and flexible circuit segments of the industry in growth rates and book-to-bill patterns.

Rigid PCB shipments are up 7.8% and bookings are down 6.0% in October 2006 from October 2005. Year to date, rigid PCB shipments are up 9.9%, and bookings are up 8.3%. Rigid PCB shipments from the survey sample decreased 14.3% from the previous month and rigid bookings decreased 7.5% from the previous month.

Flexible circuit shipments in October 2006 were up 26.4% and bookings were down 8.7% compared to October 2005. Year to date, flexible circuit shipments are up 8.3% and bookings are down 6.5%. Compared to the previous month, flexible circuit shipments from the survey sample decreased 6.2% and flex bookings decreased 13.0%.

For rigid PCBs and flexible circuits combined, industry shipments in October 2006 increased 9.0% from October 2005, and orders booked decreased 6.2% from October 2005. Year to date, combined industry shipments are up 9.8% and bookings are up 7.2%. Combined industry shipments for October 2006 are down 13.7% over the previous month, and bookings are down 7.9% over the previous month.

"The October book-to-bill ratio of 0.99 is only slightly below parity, but this is the first time we have seen a book-to-bill ratio below 1.00 in almost two years," said IPC president Denny McGuirk. "This is no cause for alarm, though, because it is mainly due to a big increase in flexible circuit shipments this month and increases in rigid PCB shipments in August and September. The fundamentals still look good," he added.