BANNOCKBURN, IL – Electronics manufacturing directly supports more than 1.3 million US jobs, according to a new IPC report. For every US EMS job, three other jobs are supported in the US economy, contributing to a total of 5.3 million American jobs. Also, the industry indirectly and directly contributes $714 billion (3.7%) to US GDP.

“Electronics are at the heart of thousands of products and hundreds of industries in the US,” said John Mitchell, president and CEO of IPC. “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 US economy.”                                                                                   

The report also finds 16 states, led by California and Texas, account for about 75% of direct electronics manufacturing jobs in the US. California alone has nearly 275,000 direct EMS jobs and almost $197 billion in direct output, accounting for 3.4% of California’s GDP.                                                

The electronics manufacturing industry is responsible for more than $1 trillion in the content of final sales, spread across business investment and inventory change ($426.6 billion); personal consumption ($306.5 billion); exports ($223.9 billion); federal defense ($37.8 billion); and other government spending ($48.1 billion), according to IPC.

Ten states have more than 100,000 workers each because of the EMS sector, led by California and Texas.

EMS employees average about $127,000 in total labor income, which is more than double the national average compensation of $60,820. Electronics manufacturing employees also earn more than the average manufacturing employee, who earns $83,000 annually.

States with higher-than-average contributions to GDP from electronics manufacturing include Oregon, California, Massachusetts, Minnesota, North Carolina, Arizona, Texas, Wisconsin, and Colorado.

The largest subsectors of EMS, ranked by output, are computer and peripheral equipment manufacturing; semiconductor and other electronic component manufacturing; and navigational, measuring, electromedical, and control instruments manufacturing, which together make up more than 73% of the total.

The coronavirus epidemic is being felt by the US EMS industry, says IPC. The industry is facing a variety of challenges, including unclear and evolving operating restrictions, changing demand patterns, abnormalities in supply chains, and an unsettled workforce that was already stretched thin.

While manufacturers and suppliers report several concerns, they appear most concerned about weaker demand. In April, more than half of manufacturers said this would be their biggest concern in the weeks ahead, according to IPC’s Survey. Some 44% reported they are most concerned about supply shortages, while over a third said they are worried about worker shortages.

Also, many manufacturers issued temporary layoffs in March and April, and now a majority of respondents report they expect to bring furloughed workers back to factories by the end of June. However, one in five said furloughed workers would not return.

Finally, nearly 70% of manufacturers have applied for a Payroll Protection Program loan to help cope through these challenging times. Of those who have applied, roughly 44% have received funding, while 25% 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 $10 billion Electronics Manufacturing Initiative to enhance the security of the US electronics value chain,” said Mitchell. “By leveraging public-private partnerships, we can grow domestic capacity, research and development capabilities and bridge the workforce to elevate employee training.”