Signalling a stable demand despite falling shipments, North America’s EMS shipments, however, dropped 2.4 per cent YoY in January 2025, but the book-to-bill ratio rose.
In January 2025, electronics manufacturing service (EMS) shipments went down by 2.4 per cent year-on-year, according to the findings by the Institute for Printed Circuits (IPC). However, the book-to-bill ratio for the month stood at 1.27, improving from the last few months and reflecting a continued demand for electronic manufacturing services.
Over the past year, the book-to-bill ratio of EMS shipments in the continent has shown notable fluctuations. It began at 1.16 in January 2024 and increased steadily to 1.42 in April 2024, marking the highest point of the year. Following this peak, the ratio saw a decline, reaching its lowest point at 1.19 in July.
In the latter half of the year, the ratio remained stable at 1.26 from August to October before dropping to 1.17 in November. A recovery began in December, with the ratio rising to 1.24, and it continued to improve in January 2025, reaching 1.27.
Despite this positive trend in the book-to-bill ratio, EMS shipments have seen a YoY decline. Additionally, shipments were down 1.8 per cent from the previous month.
Bookings also experienced a downturn. In January 2025, EMS bookings decreased by 1.2 per cent YoY and recorded a significant drop of 15.6 per cent compared to December 2024.
According to the report, while the book-to-bill ratio suggests that demand remains strong, the decline in shipments and bookings indicates a potential slowdown in new orders.
However, looking ahead, Shawn DuBravac, IPC chief economist, commented, “January’s performance reflects a stable demand environment.”
“We expect the broader trend to remain positive in the coming months, with key indicators pointing toward healthy demand,” he said.
The coming months will determine whether the market continues its recovery or faces further challenges in sustaining growth.
