IPC Supply Chain Tracker shows some encouraging data

In a podcast interview for IPC.org, Sharon Starr, IPC director of market research, shares her insights on the recently released spring 2009 IPC Supply Chain Tracker. The Supply Chain Tracker offers important insights into the health of the electronics interconnect industry. Starr talked about some encouraging industry data for IPC’s members.

Here are a few key highlights from the interview:

On key findings of the quarterly supply chain report …

“I think the main finding, and it seems to be mirrored in several industry segments, is the fact that we may have hit bottom now. At the end of the first quarter, there certainly was a continuation of decline, but in many industry segments, the rate of decline slowed and some of the leading indicators have actually started turning up. We may be on the verge of the beginning of a recovery …”

On the IPC book-to-bill ratio recent trends …

“Right now for EMS, the book-to-bill ratio is around .95 for the PCB industry. It’s gone up from a low of .89 in January, and April was .97, so it’s getting very close to parity. It’s been going up steadily. When we see a trend such as the book-to-bill ratio going up for one month, we don’t read too much into that. But when we see it going up or going in the same general direction for three or four months, that starts to look like a trend. And that’s what we’re seeing now.”

On what IPC member companies and electronics interconnect industry firms should take away from the report …

“They should be encouraged by it and know that the worst may be over. If they can hang in there and continue to keep costs down, they will see some improvement in their business probably in the third quarter.”

For more details and insights from Starr on the Supply Chain Tracker, listen to the podcast. To read the full report, visit the market research section of the IPC members only site. Industry reports and statistical data are a free IPC membership benefit. Access to the reports is available to all IPC members in the IPC members only section of IPC.org.

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