IPC releases IMS/PCB book-to-bill ratio for February 2005

APRIL 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 IMS/PCB industry book-to-bill ratio for February 2005 continued at 1.08. 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 down 3.2%, and bookings are down 9.8% in February 2005 from February 2004. Year to date, rigid PCB shipments are down 1.8%, and bookings are down 6.0%. Rigid PCB shipments from the survey sample increased 11.2% from the previous month, and rigid bookings increased 4.5% from the previous month.

Flexible circuit shipments are up 21.2% and bookings are down 105.0% in February 2005 from February 2004. Year to date, flexible circuits shipments are up 33.8%, and bookings are down 26.2%. Compared to the previous month, flexible circuit shipments from the survey sample decreased 13.9% and flex bookings decreased 104.7%.

For rigid PCBs and flexible circuits combined, industry sales billed (shipments) in February 2005 increased 0.9% from February 2004, and orders booked decreased 34.1% from February 2004. Year to date, combined industry shipments are up 4.3% and bookings are down 10.1%. Combined industry shipments for February 2005 are up 5.1% over the previous month, and bookings are down 28.3% over the previous month.

The book-to-bill ratios and growth rates for rigid PCBs and flexible circuits combined are heavily affected by the rigid PCB segment, which represents more than 75% of the current PCB market in North America. The influence of flexible circuits is growing, however, as flexible circuit shipments have shown stronger growth than rigid PCBs over the past eighteen months.

IPC's monthly survey of the North American PCB industry tracks bookings and shipments from US and Canadian facilities, which provide indicators of regional demand. These numbers do not measure US and Canadian PCB production. IPC asks survey participants for the percent of their reported shipments that were produced domestically (the USA or Canada). In February 2005, 67% of total PCB shipments reported were domestically produced. Domestic production accounted for 74% of rigid PCB and 37% of flexible circuit shipments in February.

Flexible circuit sales typically include some value-added services, such as assembly, in addition to the bare flex circuits. In February, the flexible circuit manufacturers in IPC's survey sample indicated that bare circuits accounted for about 30% of their shipment value reported for the month.

For more information, contact IPC director of market research Sharon Starr at[email protected] or 847-597-2817.