Electronic Products & Technology

EMS industry up 2.3% in March

EP&T Magazine   

Electronics Contract Manufacturing CEM contract manufacturing EMS

IPC releases EMS industry results for North America

Things were looking up for the electronic manufacturing services (EMS) sector across North America this March, according to industry results released by IPC and its Statistical Program figures. The book-to-bill ratio stands at 1.44.

Total North American EMS shipments in March 2022 were up 2.3 percent compared to the same month last year. Compared to the preceding month, March shipments rose 14.3 percent. EMS bookings in March fell 13.3 percent year-over-year but rose 18.7 percent from the previous month.

Source: IPC

“Industry output improved in March, despite the headwinds from geopolitical conflict straining already stressed supply chains,” said Shawn DuBravac, IPC’s chief economist. “The book-to-bill remains high suggesting strong orders, but we have seen order flow slow in recent months which are likely the early signs of weakening demand.”

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.



Stories continue below

Print this page

Related Stories