BANNOCKBURN, Ill., USA, August 31, 2011 ― IPC ― Association Connecting Electronics Industries announced today the July findings from its monthly North American Printed Circuit Board (PCB) Statistical Program. PCB Industry Growth Rates and Book-to-Bill Ratios Announced Rigid PCB shipments were down 10.2 percent and bookings were down 17.0 percent in July 2011 from July 2010. Year to date, rigid PCB shipments increased 2.3 percent and bookings declined 10.0 percent. Compared to the previous month, rigid PCB shipments decreased 24.8 percent and rigid bookings decreased 19.0 percent. The book-to-bill ratio for the North American rigid PCB industry in July 2011 remained near parity at 0.99. Flexible circuit shipments in July 2011 were down 28.3 percent and bookings declined 4.5 percent compared to July 2010. Year to date, flexible circuit shipments increased 3.2 percent and bookings also increased 8.0 percent. Compared to the previous month, flexible circuit shipments decreased 17.8 percent and flex bookings fell 34.9 percent. The North American flexible circuit book-to-bill ratio in July 2011 jumped to 1.20. For rigid PCBs and flexible circuits combined, industry shipments in July 2011 decreased 12.1 percent from July 2010, as orders booked decreased 16.0 percent from July 2010. Year to date, combined industry shipments were up 2.4 percent and bookings were down 8.5 percent. Compared to the previous month, combined industry shipments for July 2011 decreased 24.2 percent and bookings decreased 20.8 percent. The combined (rigid and flex) industry book-to-bill ratio in July 2011 climbed to just above parity at 1.01. July is typically a slower month than June for the PCB industry, said IPC President CEO Denny McGuirk. Negative year-on-year growth rates in North American PCB sales and orders for July reflect slowing growth compared to the height of the recovery one year ago, he added. The good news is the book-to-bill ratio remains just above parity, largely due to the continued strength of flexible circuit orders. 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 IPCs 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 two to three months. 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 89 percent of the current PCB industry in North America, according to IPCs World PCB Production Report.
