North American EMS Industry Up 3.4 Percent in July
August 31, 2023 | IPCEstimated reading time: 1 minute
IPC announced the July 2023 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.27.
Total North American EMS shipments in July 2023 were up 3.4 percent compared to the same month last year. Compared to the preceding month, June shipments decreased 0.7 percent.
EMS bookings in June decreased 3.5 percent year-over-year and increased 2.1 percent from the previous month.
“The North American EMS industry saw minimal change in July. The year-to-date trend of weaker orders and stronger shipments remains intact,” said Shawn DuBravac, IPC’s chief economist.
Detailed Data Available
Companies that participate in IPC’s North American EMS Statistical Program have access to detailed findings on EMS sales growth by type of production and company size tier, order growth and backlogs by company size tier, vertical market growth, the EMS book-to-bill ratio, 3-month and 12-month sales outlooks, and other timely data.
Interpreting the Data
The book-to-bill 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 companies in IPC’s survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next three to twelve months. A ratio of less than 1.00 indicates the reverse.
Year-on-year and year-to-date growth rates provide the most meaningful view of industry growth. Month-to-month comparisons should be made with caution as they reflect seasonal effects and short-term volatility. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month might not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in both bookings and shipments to understand what is driving changes in the book-to-bill ratio.
IPC’s monthly EMS industry statistics are based on data provided by a representative sample of assembly equipment manufacturers selling in the USA and Canada. IPC publishes the EMS book-to-bill ratio by the end of each month.
Suggested Items
North American EMS Industry Down 4% in March
04/29/2024 | IPCIPC announced the March 2024 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.31.
Real Time with… IPC APEX EXPO 2024: A Global Presence in PCB Manufacturing
04/29/2024 | Real Time with...IPC APEX EXPORob DiGiovanni, VP of sales for the Americas at STARTEAM Global, discusses the company's global presence in PCB manufacturing. As he explains, the firm operates facilities across Europe, Asia, and North America, specializing in serving contract manufacturers in the automotive and medical industries. They emphasize quality and meeting OEM standards, focusing on offshore supply and non-Chinese factories in the North American market. The company has grown through acquisitions and rebranding to offer multiple products.
EIPC Issues Letter of Urgency
04/29/2024 | Alun Morgan, EIPCAlun Morgan, president of EIPC, issued a letter last week in an effort to raise awareness of the state of PCB manufacturing in Europe. He writes, "The European PCB manufacturing industry and its supply base has been steadily shrinking since the dot com crash at the start of the millennium. European demand for PCBs and assemblies has, however, continued to grow, thus creating an ever-widening gap between European domestic capacity and consumption. The risks posed by this imbalanced supply and demand pattern came into sharp focus during the Covid-19 pandemic which caused chaos in extended supply chains across the world and resulted in widespread shortages."
Arlon Electronic Materials Awarded Requalification to IPC-4101 QPL for All Polyimide Specification Sheets
04/29/2024 | IPCIPC's Validation Services Program has awarded Arlon Electronic Materials Division, an electronics material manufacturing company headquartered in Rancho Cucamonga, Calif., an IPC-4101 Qualified Products Listing (QPL) requalification for the third time.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
04/26/2024 | Andy Shaughnessy, Design007 MagazineIn this week’s roundup, we have a variety of articles covering everything from design through assembly, and even box build. I’ve always wondered whether box build was all it was cracked up to be. Do customers really pick one EMS provider over another because one company offers box build? And if you’ve ever wanted to volunteer, IPC’s Thought Leaders Program is looking for a few good technologists to help them on their mission. Check out Stanton Rak’s article, which was published in the spring issue of IPC Community.