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Electronics Manufacturing Supports More Than 5.3 Million U.S. Jobs and Almost 4% of U.S. GDP, Says IPC
Electronics manufacturing contributes powerfully to the U.S. economy, according to a new report released by IPC, the global electronics manufacturing industry association. The report finds the electronics manufacturing sector directly supports more than 1.3 million U.S. jobs. For every U.S. electronics manufacturing job, three other jobs are supported in the U.S. economy, contributing to a total of 5.3 million American jobs. Also, the industry indirectly and directly contributes $714 billion (3.7 percent) to U.S. GDP.
“Electronics are at the heart of thousands of products and hundreds of industries in the U.S.,” 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 U.S. economy.”
The report also finds 16 states, led by California and Texas, account for about 75 percent of direct electronics manufacturing jobs in the United States. California alone has nearly 275,000 direct electronics manufacturing jobs and almost $197 billion in direct output, accounting for 3.4 percent of California’s GDP.
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).
Other key findings from the report include:
- The electronics manufacturing industry is responsible for more than $1 trillion dollars 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).
- Ten states have more than 100,000 workers each because of the electronics manufacturing sector, led by California and Texas.
- Electronics manufacturing 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 a year.
- 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 electronics manufacturing, 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 over 73 percent of the total.
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