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Circuit Board and Electronic Component

September 28, 2013adminBlogComments Off on Circuit Board and Electronic Component

The Circuit Board and Electronic Component Manufacturing industry is heavily concentrated in the West and Southwest regions of the United States. The States in the West produce 29.0% of industry revenue, while states in the Southwest generate 24.0%. These regions are also general hubs of technology-intensive industries; this factor tends to encourage co-location because industry operators are closer to their customers and can tap a common, specialized work force. California is the most significant state in this industry, with 18.4% of revenue, 27.3% of establishments and 21.6% of industry employees. Operations based in California are more involved with research and development (R&D) than most other states, leading to an average industry wage of $70,585, which is higher than the overall average in the industry. Texas is a close second to California, producing 11.3% of revenue with 6.2% of establishments and 9.3% of industry employees. Texas has the highest average wage in this industry at $85,291; like California, it is home to more employees involved in R&D. Industry operators are increasingly choosing to relocate to Texas more than any other state (in domestic moves) because of favorable laws and regulation.

The Circuit Board and Electronic Component Manufacturing industry has a low level of concentration, with the four largest companies representing about 20.0% of industry revenue in 2013. Flextronics, TE Connectivity and Sanmina are all global electronics manufacturers with a manufacturing presence in multiple countries. The remainder of industry revenue comes from smaller, often contract-based, suppliers that represent less than 5.0% of industry revenue each. The standardized nature of the industry’s products lends itself to high levels of competition between smaller industry players.

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