North American EMS industry up 15.5%

IPC says the book-to-bill ratio stands at 1.29, while total North American EMS shipments in September 2022 rose 15.5% compared to the same month last year. Compared to the preceding month, September shipments decreased 0.1 percent, according to findings from IPC’s North American Electronics Manufacturing Services (EMS) Statistical Program.

EMS bookings in September increased 21.1 percent year-over-year and increased 18.1 percent from the previous month.

“North American EMS bookings improved in the last month, hitting a high for the year, a sign that demand for durable goods still has some life despite the slowing macroeconomic environment,” said Shawn DuBravac, IPC’s chief economist. “Shipments remain healthy for a second consecutive month, a hopeful sign that severe supply chain constraints are behind us.”

Source: IPC

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.