SAN JOSE – North American manufacturers of semiconductor equipment posted $1.59 billion in October orders, up 110.7% year-over-year and down 3.5% sequentially.

The book-to-bill ratio fell below the benchmark 1.0 level, however, suggesting softness ahead.

October billings were $1.62 billion, up 133.7% year-over-year and up 0.7% sequentially.

The book-to-bill ratio was 0.98, says SEMI. A book-to-bill of 0.98 means $98 worth of orders were received for every $100 of product billed for the month.

“The October book-to-bill ratio dipped below parity for the first time since June 2009, as continued billings strength was accompanied by a hesitation in new orders,” said Stanley T. Myers, president and CEO of SEMI. "The market for new equipment reflects seasonal softening and near-term respite in capital spending in some segments of the industry. However, bookings remain at more than double the figure reported one year ago and above the average figure reported during the 2006-2007 cycle.”
 

MILWAUKEE, WI – A majority of manufacturers are optimistic about an economic uptick in 2011 at their organizations, according to a recent ASQ survey.

More than 1,200 manufacturing professionals from the US and Canada responded to the online survey.

Of the respondents, 68% predict revenue growth for 2011. That’s up from a year ago, when 64.7 % of respondents predicted revenue would grow in 2010.  This year, when asked if their organization did experience revenue growth in 2010, 67% indicated “yes.”

Only 18% expect a pay freeze at their organizations in 2011, compared to 44.8% in 2010.

Eighteen percent predict mandatory budget cuts in 2011, whereas 35.2% did in 2010.

Forty-eight percent of manufacturers expect a salary/merit increase, and 42% expect to maintain current staff levels. Another 42% expect to hire additional staff.

Forty-seven percent of organizations expect to continue to create processes to reduce costs, down from 61.3% in 2010.

The survey asked whether staff reductions or other cutbacks implemented in 2010 negatively impacted the quality of the products/services delivered, with 33% believing the quality of their products/services was negatively impacted. Thirty-two percent believe the quality did not suffer.