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

IPC announced Friday the findings from its monthly Interconnect Manufacturing Services (IMS)/Printed Circuit Board (PCB) Statistical Program.  The IPC PCB Presidents Council recently selected IMS as a better designation for the PCB industry to better reflect the services provided to customers.

IMS/PCB Book-to-Bill Ratio  
The North American IMS/PCB Industry Book-to-Bill Ratio for February 2004 remained firm at 1.08.  The ratio is calculated by averaging the index numbers for orders booked over the past three months and dividing by the average index numbers for sales billed during the same period.  A ratio of more than 1.00 suggests that current demand is ahead of supply, which indicates probable near-term growth.

Industry sales billed (shipments) in February 2004 increased 27.5 percent from February 2003, and orders booked increased 42.3 percent from February 2003.  Compared to 2003, shipments of PCBs are up 27.9 percent year-to-date, while bookings of PCBs are up 30.9 percent year-to-date.

IMS/PCB Business Report
The IMS/PCB Business Report, an IPC statistical report that tracks the dynamics of the U.S. IMS industry, reported the IMS/PCB shipment index was 131.4 and the IMS/PCB booking index was 144.4 for February 2004.

The IPC IMS/PCB shipment index in February 2004 increased 11.3 percent from 118.1 in January 2004, and the IPC IMS/PCB booking index in February 2004 increased 15.3 percent from 125.2 in January 2004.

The index shows how current PCB shipments and bookings relate to an index point.  In this case, 1992 was chosen as the index point because it was a stable growth year for U.S. PCB manufacturers.  A shipment index number of 117.0, for example, indicates that shipments are 17 percent higher than average shipments for the same time period in 1992.

The indices are calculated by setting the base year (1992) equal to 100 and then multiplying the monthly growth rates of the actual shipments and bookings by the corresponding index number.

Percentages based on the index numbers reflect changes in the size of the industry.  Data reported by current participants in IPC’s monthly survey, however, tell an even more positive story.  These participating companies report that their shipments increased 32.0 percent in February 2004 over February 2003, and that their orders booked increased 50.6 percent in February, year-over-year.

Year-to-date, current survey participants report shipments have increased 28.6 percent and bookings have increased 33.6 percent over the same period in 2002.

Together, these figures show a North American PCB industry that is rebounding, with companies currently in the industry doing better than last year.

The information in IPC’s monthly industry statistics is based on data provided by both rigid and flexible PCB manufacturers that participate in IPC’s monthly IMS Statistical Program.  These companies represent approximately 60 percent of the U.S. IMS industry.  IPC publishes the IMS Book-to-Bill Ratio and the IMS Business Report each month.  (Statistics for the previous month are not available until the last week of the following month.)
For more information, contact IPC Director of Market Research Sharon Starr at SharonStarr@ipc.org or 847-790-5317.