Although bookings rose 28 per cent, boosting the book-to-bill ratio amid tariff uncertainties, the North American EMS industry saw a shipment decline of 7.8 per cent in December 2024.
The North American electronics manufacturing service (EMS) industry saw a year-on-year (YoY) shipment decline of 7.8 per cent in December 2024, revealed a recent finding by the Institute of Printed Circuits (IPC). Compared to November 2024 shipments, it fell by 8.3 per cent.
However, EMS bookings in North America saw a 28 per cent YoY increase and a 16.9 per cent rise from the prior month. As of December, the book-to-bill ratio stands at 1.26.
In IPC’s record of monthly fluctuations of this ratio, it stood at 1.16 in December 2023 and remained at 1.16 in January 2024. It then experienced a steady increase, peaking at 1.42 in April 2024, suggesting a strong demand surge.
Following this peak, the ratio gradually declined to 1.19 in July 2024 before rebounding slightly and stabilising around 1.26 from August to December 2024, except for a minor dip to 1.18 in October 2024.
The overall trend indicated strong demand growth in early 2024, followed by a correction and stabilisation in the latter half of the year.
“Strong bookings in December elevated the North American EMS book-to-bill ratio. While shipments are expected to catch up, this surge in orders was likely influenced by tariff uncertainties,” said Shawn DuBravac, Ph.D., IPC’s chief economist.
