© stevanovicigor dreamstime.com General | May 15, 2020
IPC: health of EMS industry germane to success of U.S. economy
IPC’s recently published report, The Economic Impacts of the U.S. Electronics Manufacturing Sector, confirms the robust role that electronics manufacturing plays in the U.S. economy, as well as the impacts of COVID-19 that manufacturers and suppliers are most concerned about.
The report cites the electronics manufacturing sector as directly contributing to more than 1.3 million jobs in America; and for every one job in the industry, three other U.S. jobs are indirectly supported, totaling approximately 5.3 million jobs supported directly and indirectly by the industry. This jobs total translates to 3.7% of U.S. GDP, or USD 700 billion annually. The report also states that 75% of “direct electronics manufacturing jobs” are spread among 16 states, with California and Texas at the top. The Golden State accounts for 275,000 direct electronics manufacturing jobs and almost USD 197 billion in direct output, or 3.4% of California’s GDP. IPC President and CEO John Mitchell said, “Electronics are at the heart of thousands of products and hundreds of industries in the U.S. More than most industries, we are vertically and horizontally integrated across many markets, and the health of our industry is key to the overall success of the U.S. economy.” In other key findings, the report states that the electronics manufacturing industry is responsible for more than USD 1 trillion dollars in the content of final sales, spread out among business investment and inventory change (USD 426.6 billion); personal consumption (USD 306.5 billion); exports (USD 223.9 billion); federal defense (USD 37.8 billion); and other government spending (USD 48.1 billion). Total labor income for electronics manufacturing employees average a little more than double the national average compensation, at approximately USD 127,000. Electronics manufacturing employees also edge out other types of manufacturing wages, which average approximately USD 83,000 per year. In addition California and Texas, those state with higher-than-average contributions to yearly U.S. GDP from electronics manufacturing include Oregon, Massachusetts, Minnesota, North Carolina, Arizona, Wisconsin, and Colorado. Withing the industry, the largest subsectors, ranked by output, are computer and peripheral equipment manufacturing, semiconductor and other electronic component manufacturing; and navigational, measuring, electromedical, and control instruments manufacturing, which combined make up over 73% of the total. The report also drilled down into the impacts of COVID-19 on the industry, with data compiled through its COVID-19 Survey of the Electronics Industry. Results of the survey cited among the most difficult challenges born from the global health pandemic are the ever evolving and also nebulous operating restrictions, supply chain fluctuations, changing demand patterns, and a workforce that already felt unsettled prior to the coronavirus outbreak. As of April, the most troublesome concern, noted by 50% of manufacturers and suppliers polled, was weaker demand. The next greatest concern, cited by 44% of those surveyed, was supply shortages, while just over a third said they are worried about workforce shortages. While many manufacturers issued temporary layoffs in March and April, a majority of respondents said they plan to bring furloughed workers back to factories by the end of June. One in five said laid off workers would not return. Almost 70% of manufacturers have applied for a Payroll Protection Program loan ease the downturn, with approximately 44% responding that they have received funds. Twenty-five percent are still waiting to receive funding. “To help drive recovery from the COVID-19 crisis, we call on Congress to do more and establish a [USD] 10 billion Electronics Manufacturing Initiative to enhance the security of the U.S. electronics value chain,” Mitchell said. “By leveraging public-private partnerships, we can grow domestic capacity, research and development capabilities and bridge the workforce to elevate employee training.”
Big Ass Fans adds third Hentec/RPS machine Complementing the purchase of two Hentec Industries/RPS Automation Vector 300 selective soldering machines in 2018, Big Ass Fans (BAF), a high-volume, low- speed (HVLS) airflow manufacturer, has just added a third machine to its factory in Newman Lake, Washington.
CE3 Electronics Inc. taps MIRTEC for 3D AOI technology Canada-based CE3 Electronics has purchased a MIRTEC MV-6 OMNI 3D AOI machine.
Gémosz is still looking to grow – but the pandemic brought new perspectives Winston Churchill famously said, “Never let a good crisis go to waste”. While this was said in a vastly different context than the current crisis of the COVID-19 pandemic, there is still truth to the fact that a crisis not only allows for change – but sometimes forces it.
North American PCB industry sales up 4.3% in April The IPC says that total North American PCB shipments in April 2020 were up 4.3% compared to the same month last year. Compared to the preceding month, April shipments fell 18.2%.
Volkswagen intensifies e-mobility activities in China Volkswagen has initiated the next chapter for its business in China. The automotive giant plans to increase its share in JAC Volkswagen, its joint venture for e-mobility.
GPV Selects Aegis as global smart factory partner Driven originally by accelerating customer expectations for traceability, GPV has selected Aegis’ FactoryLogix Smart digital manufacturing solution, targeting multiple values and benefits.
REDCOM EMS expands certification for medical device manufacturing New York-based REDCOM EMS has secured ISO 13485:2016 certification, complementing the company’s existing ISO 9001:2015 and AS9100D certifications.
Ozark Integrated Circuits nabs U.S. Air Force grant Arkansas-based Ozark Integrated Circuits Inc., located in the Arkansas Research and Technology Park at the University of Arkansas, has received a USD 750,000 award from the U.S. Air Force.
Norwegian EMS adds employees to Polish unit The last couple of months Norautron has welcomed three new colleagues at its office in Sdunska Wola, Poland.
Daimler’s battery production in Kamenz gradually increases production Local battery production is described as an important success factor for Mercedes-Benz AG’s electric offensive and a key element to flexibly and efficiently meet the global demand for electrified vehicles.
Tepcomp invests in new additional production line Finnish EMS provider, Tepcomp Group, has made a significant investment at its production plant in Turku. The new surface mount technology production line will significantly improve the productivity and energy efficiency of the plant.
Valoe is on schedule with both production and expected deliveries Valoe says it will start manufacturing IBC test modules in Juva, Finland in June and cell deliveries from Lithuania to customers is scheduled to start according to plan.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.Load more news
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