Thursday, July 31, 2014

Steady Growth in Quick turn PCB Manufacturer Industry

The USA printed circuit board manufacturing industry has seen better days. It was less than a decade ago when the PCB market was thriving and the USA manufacturing sector was booming as well. Not only have times changed for the PCB industry, times have changed for also changed for the North American manufacturing industry as a whole. Down to roughly 400 expected PCB manufacturing facilities, manufacturing suppliers in Asia has seen an increase in production due to the amount of customers moving their PCB business overseas. When USA companies move their PCB fabrication needs to Asia, they expect longer lead times, but because of Asia’s higher volume capabilities, see more affordable pricing per unit.

There are a percentage of companies in the USA who partner with quick turn PCB manufacturers who can keep up with constant innovation, high level and high-density PCB specifications. With the increase in complex circuit boards, PCB shops in Asia haven’t completely kept up with USA suppliers.  PCB fabricators like Custom Circuit Boards recently invested in more sophisticated drilling machines that can handle smaller drill sizes in order to keep up with the rapid changing PCB environment (according to their CEO). These investments have been consistent in order to improve their PCB house capabilities. You can learn more about their company and capabilities by visiting their website.

The IPC releases their PCB industry results for Jan of last year and both rigid and rigid-flex printed circuit board sales have steady growth compared to prior years. Overall, shipments are up, but bookings are down. According to the president of the IPC, sales trends for PCBs are normal and things seem to continue to be stable across the board. 

The book-to-bill ratio climbed above parity to 1.01 last year for North American flexible circuit boards. 


PCB houses that specialized in quickturn PCB manufacturing reported that demand is up year after year. Custom Circuit Board’s quickturn prototyping page recently added a promotion for faster lead times for the month of May. We have noticed that various PCB suppliers have been deploying incentives for new customers. The USA industry is quite competitive and customers have the opportunity to go to other suppliers fairly easily.

We talked with a couple of PCB companies to see what their competitive advantage compared to their Asia and domestic completion. Here are a few of the things that they are focusing on.
  1. Improved communication between customers and sales reps
  2. Better trained sales reps (in order to provide immediate technical and engineering help)
  3. a.    Many PCB suppliers found this to be a hard shoe to fill due to the limited amount of sales associates who have the combined sales and engineering background.

  4. Faster lead times – Lead times that their Asia competitors can’t physically provide due to customs, shipping, and manufacturing lead time limitations.
  5. Affordable pricing - Competitive with other domestic competition.
  6. Ease of getting quotes (From an automated website form or submission form)
            a.   Providing customers with quicker quotes

The local domestic Quick turn PCB industry is ever changing and companies are looking to create partnerships with customers in order to create loyalty and lifetime fans. Suppliers are ensuring that designs with their manufacturing facilities deliver high-yield orders. Partnering with companies like Altium Designer and CadSoft EAGLE, it is cooperation that will allow for the quick turn industry to continue its growth.