Electronics Industry Indicator Shows Signs of Recovery Jun 8, 2009

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The Association Connecting Electronics Industries' (IPC) recent Supply Chain Tracker indicates the first signs of recovery in the electronics industry.

IPC's global statistical programs for several key industry segments all show worsening year-on-year growth rates in 1Q 2009, after growth rates turned negative in late 2008. IPC's North American Electronics Industry Performance Index fell 29%, the third straight quarter the index has declined. The index, a new addition to Supply Chain Tracker, monitors the performance of the North American electronics supply chain.

IPC said that leading indicators, however, are beginning to show improvement. The April 2009 book-to-bill ratio for the North American printed circuit board (PCB) industry climbed for the third straight month from 0.89 to 0.97. The ratio still indicates lagging demand, IPC said, but it is trending toward 1.0, the point of parity between bookings and shipments. The North American EMS book-to-bill ratio inched up to 0.95 at the end of first quarter. Semiconductor sales, while still in negative territory, improved in 1Q 2009.

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