IPC releases findings for May 2005

JULY 6--IPC-Association Connecting Electronics Industries (Northbrook, IL;www.ipc.org), a trade association of more than 2200 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 Interconnect Manufacturing Services (IMS)/Printed Circuit Board (PCB) Statistical Program. The North American rigid PCB industry book-to-bill ratio for May 2005 remained positive at 1.04, while the North American flexible circuit book-to-bill ratio bounced back to near parity at 0.98. 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 May 2005 increased to 1.03. This combined ratio has become less relevant to analysts, however, due to the divergence between the rigid PCB and flexible circuit segments of the industry in growth rates and book-to-bill patterns.

Rigid PCB shipments are down 11.0%, and bookings are up 2.5% in May 2005 from May 2004. Year to date, rigid PCB shipments are down 6.9% and bookings are down 3.4%. Rigid PCB shipments from the survey sample increased 6.9% from the previous month and rigid bookings increased 5.4% from the previous month.

Flexible circuit shipments are up 6.2%, and bookings are down 47.7% in May 2005 from May 2004. Year to date, flexible-circuits shipments are up 21.8%, and bookings are down 19.6%. Compared to the previous month, flexible circuit shipments from the survey sample decreased 9.4% and flex bookings increased 22.5%.

For rigid PCBs and flexible circuits combined, industry sales billed (shipments) in May 2005 decreased 7.8% from May 2004, and orders booked decreased 17.0% from May 2004. Year to date, combined industry shipments are down 1.9% and bookings are down 7.5%. Combined industry shipments for May 2005 are up 2.9% over the previous month, and bookings are up 9.1% over the previous month.