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12 December 2016

NEWS FROM THE IPC

North American PCB Book-to-Bill Ratio Climbs to 1.08 IPC Releases PCB Industry Results for October 2016

IPC — Association Connecting Electronics Industries® have announced the October 2016 findings from its monthly North American Printed Circuit Board (PCB) Statistical Program. The PCB book-to-bill ratio continued to strengthen, climbing to 1.08, while sales and orders were both down in October.

Total North American PCB shipments in October 2016 were 8.3 percent below the same month last year. Year-to-date as of October, shipment growth is up 2.8 percent. Compared to the preceding month, October shipments decreased 13.9 percent. PCB bookings in October decreased 1.8 percent year-on-year, reducing year-to-date bookings growth to -0.1 percent. Compared to the previous month, orders in October 2016 were down by 12.3 percent.

“As a leading indicator, the book-to-bill ratio’s dip below parity (1.00) in June and July of this year anticipated last month’s downturn in sales,” said Sharon Starr, IPC’s director of market research. “The flip side of this, however, is that the current strong book-to-bill ratio indicates the probability of a return to growth later this year or in early 2017,” she added.

Detailed Data Available

The next edition of IPC’s North American PCB Market Report,containing detailed October data from IPC’s PCB Statistical Program, will be available next week. The monthly report presents detailed findings on rigid PCB and flexible circuit sales and orders, including separate rigid and flex book-to-bill ratios, growth trends by company size tiers, military and medical market growth, demand for prototypes, and other timely data. This report is available free to current participants in IPC’s PCB Statistical Program and by subscription to others. More information about this report can be found at www.ipc.org/market-research-reports.

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 six 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 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. IPC publishes the PCB book-to-bill ratio at the end of each month. Statistics for the current month are normally available in the last week of the following month.

IPC Study on North American PCB Industry Reports Growth in Military/Aerospace Market

BANNOCKBURN, Ill., USA, December 6, 2016 — Printed circuit boards (PCBs) for military and aerospace applications remain the largest vertical market segment for PCB manufacturers in North America, representing about one-third of the market. And it is the only vertical market segment expected to grow in 2016 as a share of the North American market, according to IPC’s 2016 Analysis and Forecast for the North American PCB Industry.

Other key findings include segmented market data showing that flexible circuit market growth has continued to outpace rigid PCB growth by a wide margin, but the negative growth rates seen in recent years in the rigid PCB market steadily diminished and growth turned positive in 2015. Estimated PCB production in North America declined 4.3 percent from 2014 to 2015, while estimated market growth was virtually flat, increasing just 0.4 percent.

The annual survey-based study provides a comprehensive overview of the market and business of PCB manufacturing in North America. It contains current data and analysis covering rigid PCBs and flexible circuits separately, including market and production growth, production and sales by product categories, prototype production, vertical markets and use of special technologies such as RF and embedded components. It also reports key financial and operational metrics including revenue per employee, capacity utilization, inventory turns and lead times. Forecasts of PCB production in the Americas and the world through 2017 from Dr. Hayao Nakahara, a leading industry analyst and consultant to the PCB industry, are included in the report.

The findings within the report result from data contributed by the companies that participated in IPC’s North American PCB Statistical Program in 2015 and year-end survey. Statistical program participants represent an estimated 51 percent of the North American PCB market.

The 57-page, downloadable report is available to IPC members for $450 and and to non members for $900. Participants in the year-end survey received a  complimentary copy of the report.

For more information or to purchase the2016 Analysis and Forecast for the North American PCB Industry, visitwww.ipc.org/PCB-Study-2016..

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