JULY 31--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 June 2006 is just at parity at 1.00. The North American flexible circuit book-to-bill ratio climbed back to the positive range at 1.01, after a three-month dip below parity. The combined (rigid and flex) industry book-to-bill ratio in June 2006 was 1.00. Some analysts find the separate ratios for rigid and flex more meaningful than the combined ratio, however, 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 12.5%, and bookings are up 19.2% in June 2006 from June 2005. Year to date, rigid PCB shipments are up 11.3%, and bookings are up 13.9%. Rigid PCB shipments from the survey sample increased 7.8% from the previous month and rigid bookings increased 19.1% from the previous month.
Flexible circuit shipments in June 2006 were up 1.7%, and bookings were up 18.9% compared to June 2005. Year to date, flexible circuit shipments are up 0.9% and bookings are down 7.6%. Compared to the previous month, flexible circuit shipments from the survey sample increased 17.4% and flex bookings increased 73.8%.
For rigid PCBs and flexible circuits combined, industry shipments in June 2006 increased 11.6% from June 2005, and orders booked increased 19.2% from June 2005. Year to date, combined industry shipments are up 10.6% and bookings are up 12.3%. Combined industry shipments for June 2006 are up 8.4% over the previous month, and bookings are up 22.6% over the previous month.
"Shipments and bookings in both segments of the industry showed healthy growth in June," said IPC president Denny McGuirk. "In the flexible circuit segment, the book-to-bill ratio has returned to the positive range, which suggests a modest upturn. The sluggish results in flex circuit business during the first half of 2006 may be a reflection of the growing competitiveness in this segment. More companies are entering the flex market, in response to its high growth of the past two years," McGuirk concluded.