[Source: ZVEI/VdL; please click the picture for enlarged view]

The downwards trend in the German circuit board market continued in February 2009. In February 2009, the sales of the circuit board manufacturers were 40% below that of the previous year, as reported by the Verband der Leiterplattenindustrie [Association of the Circuit Board Industry] and the ZVEI-Fachverband Electronic Components and Systems. As the worldwide reduced demand for machines and vehicles affects the export economy, many users of circuit boards are starting to cancel their orders. The resulting lack of work is resulting in a substantial increase in competition.

The orders received in February as well as the cumulated value for the first 2 months is less than half of the level of the comparable period of the previous year. Orders are being terminated at shorter notice. Even customers who in the past operated with long-term delivery plans are once again changing to individual orders. This makes production planning more difficult.

The Book-to-Bill-Ratio, as an indicator of the medium-term trend, reached 0.78. This is the lowest February level since 2001 when the so-called IT bubble burst. Employment since the start of the year has been reduced by 8.5% and in comparison to the same month of the previous year, the reduction in employment was even 16%. As layoffs only become effective after a certain delay, the ZVEI is expecting further reductions in the employment figures.