BANNOCKBURN, IL — North American electronics manufacturing services (EMS) bookings in December decreased 22.7% year-over-year and decreased 2.9 percent from the previous month. 

Total North American EMS shipments in December fell 2.7% from the same month last year. Compared to the preceding month, December shipments increased 5.8%.

Executives at EMS companies told PCD&F/Circuits Assembly that the falling bookings reflect a change in ordering patterns. During the pandemic, many OEMs gave EMS companies their orders for 12 or more months, up from the typical six to nine months. As component supplies return to more normal levels, OEMs are reducing their order windows accordingly. 

The book-to-bill ratio fell 20 basis points sequentially to 1.36. The ratios is 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 1.0 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next three to 12 months.

The data are compiled by IPC.

“The December results provide us with the final 2022 figures — for the year, shipments were up 4.5% while orders were down 3.7%,” said Shawn DuBravac, chief economist, IPC. “Looking forward, the economic climate is set to deteriorate in the first half of 2023. Despite this, overall industry demand appears to be holding up and backlogs appear [healthy].”

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