Electronics industry association IPC on Thursday announced the April 2019 findings from its North American Printed Circuit Board Statistical Program, showing that April was strong for PCB sales growth and bookings year-over-year, while shipments and bookings were down from a month earlier.
IPC's data showed that total North American PCB shipments were up 6.6% year-over-year. Year-to-date sales growth through April stood at 14%, while April shipments were down 23.1% from March.
April's PCB bookings increased 9.4% year-over-year, which brought year-to-date order growth up to 4%. Compared to March of this year, April bookings were down 14.0%.
The statistical program's book-to-bill ratio—which fell to its lowest level in two years in March to a mark of 1.00—strengthened slightly in April to 1.02.
“A return to solid year-over-year order growth for the North American PCB industry in April moved the book-to-bill ratio from parity (1.00) to 1.02,” said Sharon Starr, IPC’s director of market research. “The ratio has been at or above parity for the last 28 months, which is an unusually long stretch for this leading indicator. Recent ratios indicate continued but slower growth in the coming months.” She added, “April’s negative month-to-month growth rates are not a cause for concern, as they reflect normal seasonal patterns.”
Interpreting IPC's Data
IPC's 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—a positive indicator for sales growth over the next three to 12month—while a ratio of less than 1.00 indicates the reverse.
IPC said year-over-year and year-to-date growth rates provide the most meaningful view of industry growth, while month-to-month comparisons should be made with caution as they reflect seasonal effects and short-term volatility.
IPC’s monthly PCB industry statistics are based on data provided by a representative sample of both rigid PCB and flexible circuit manufacturers selling in the USA and Canada.
