North American EMS industry up 5.0% in May

The total North American EMS shipments were up 5.0 percent in May compared to the same month last year, according to data compiled by industry association IPC. Compared to the preceding month, May shipments increased 3.7 percent, while the book-to-bill ratio stands at 1.36.

EMS bookings in May increased 2.6 percent year-over-year and decreased 16.2 percent from the previous month, according to the IPC report.

“The North American EMS industry continues to show resiliency,” said Shawn DuBravac, IPC’s chief economist. “Shipments and orders moved higher in May, but lower order growth compared to a year ago speaks to the headwinds facing the sector today.”

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.

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.