IPC releases IMS/PCB book-to-bill ratios for November 2006
DECEMBER 22--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 November 2006 decreased to 0.92. The North American flexible circuit book-to-bill ratio declined to 0.86.
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 November 2006 was 0.92. 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.
The 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 the companies in IPC's survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which indicates probable near-term growth.
Rigid PCB shipments are up 6.0% and bookings are down 11.6% in November 2006 from November 2005. Year to date, rigid PCB shipments are up 9.5% and bookings are up 6.6%. Rigid PCB shipments from the survey sample increased 4.3% from the previous month and rigid bookings decreased 10.6% from the previous month.
Flexible circuit shipments in November 2006 were down 7.4% and bookings were down 37.6% compared to November 2005. Year to date, flexible circuit shipments are up 6.7% and bookings are down 10.0%. Compared to the previous month, flexible circuit shipments from the survey sample decreased 4.6% and flex bookings decreased 4.8%.
For rigid PCBs and flexible circuits combined, industry shipments in November 2006 increased 4.9% from November 2005, and orders booked decreased 14.0% from November 2005. Year to date, combined industry shipments are up 9.3% and bookings are up 5.3%. Combined industry shipments for November 2006 are up 3.7% over the previous month and bookings are down 10.2% over the previous month.
"The recent decline in PCB orders is an indication that we're moving into a period of slower growth in all segments of the electronics industry," said IPC president Denny McGuirk. "But the industry is still well ahead of last year. Shipments are showing the typical pattern of recovery after a slow October and leading to a strong year-end," he added.
The 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 85% of the current PCB market in North America, according to IPC's World PCB Production and Laminate Market Report for the Year 2005.
