The industry is characterized by significant research and development activity and rapid technological change. Professional and related workers account for 1 out of 3 workers.

Curtis Williams     Oakwood Campus   cwilliams@laniertech.edu   Phone: (770) 531-6427

The computer and electronic product manufacturing industry produces computers, computer peripherals, communications equipment, and similar electronic products. These products are used in homes and businesses, as well as in government and military establishments. In addition, many electronics products or components are incorporated into other industries’ products, such as cars, toys, and appliances. Goods and services. This industry differs somewhat from other manufacturing industries in that production workers make up a relatively small proportion of the workforce. Technological innovation characterizes this industry more than most others and, in fact, drives much of the industry's production. This unusually rapid pace of innovation and technological advancement requires a high proportion of engineers, engineering technicians, and other technical workers who carry out extensive research and development (R&D). Likewise, the importance of promoting and selling the products manufactured by the various segments of the industry requires knowledgeable marketing and sales workers. American companies in this industry manufacture and assemble many products abroad to take advantage of lower production costs and favorable regulatory environments. Most electronic products contain many intermediate components that are purchased from other manufacturers. Companies producing intermediate components and finished goods often choose to locate near each other so that companies can receive new products more quickly and lower their inventory costs. It also facilitates joint research and development projects that benefit both companies. Industry organization. The computer and electronic product manufacturing industry has many segments. Companies in the industry are generally classified by what they sell. Computer and peripheral manufacturing is made up of companies that make computers and related products, known as peripherals. Most computers are built by a small number of well-known brands, but there are also many small companies that sell their products locally or on the Internet. Computers are made up of components, such as motherboards, central processing units, graphics cards, hard disk drives, and power supplies. Many of these products are purchased from other companies and assembled as part of the computer. As a result, many finished computers are simply the combination of a number of other products. Other firms in this industry segment produce computer peripherals, which are devices that can be used with computers, such as keyboards, mice, printers, and scanners. Other peripherals, generally known as internal peripherals, are physically installed in the computer's case. These include hard disk drives, networking cards, modems, sound cards, and disk drives. Many internal peripherals are prepackaged as part of a computer, although almost all of them can be installed by a technician or experienced computer owner. The communications equipment manufacturing segment of the industry produces a number of devices that simplify communication between individuals or groups. This segment includes telephones and cellular telephones, as well as equipment used by television and radio stations to transmit information. It should be noted that this does not include computer-related peripherals—such as networking cards or modems—which allow computers to connect to other computers. Audio and video equipment manufacturing is a relatively small industry in the United States and includes companies who produce consumer electronics. These include televisions, stereo receivers, CD and DVD players, and other such devices. While these devices are widespread in the United States, most of them are produced overseas, making employment in this industry relatively small. Semiconductor and other electronic component manufacturers produce integrated circuits, or computer microchips, which power a wide range of electronic products. They also produce other electronic components, such as resistors and capacitors, as well as printed circuit boards. Unlike most of the companies in this industry, these manufacturers start from basic materials such as silicon and copper and produce intermediate products that are only rarely sold directly to consumers. The exceptions to this rule include companies that produce central processing units and memory chips, although even these products are more likely to be pre-installed in a new computer. The navigational, measuring, electromedical, and control instruments manufacturing segment is a diverse group of companies that produce products mainly for industrial, military, and healthcare use. It also includes some consumer products, such as global positioning system (GPS) devices, as well as clocks and watches. This segment is one of the largest in the industry, mainly because its primary customers are the U.S. Department of Defense and the healthcare industry. Many of the companies in this segment work as government contractors, producing equipment for military purposes. In some cases, this technology has been adapted for consumer use. For example, GPS technology was originally designed for use by the U.S. Navy, but has been developed into a navigation system that individuals can use in their cars. There is also a growing healthcare component of this industry segment. Extensive government funding for research in medical technology has led to a number of important innovations that are being used worldwide in medical care. Manufacturing and reproducing magnetic and optical media is another segment of this industry. Firms in this segment produce blank CDs, DVDs, and audio and video tape. They produce some of this blank media for sale to consumers, but most of it they use to duplicate audio recordings, videos and movies, software, and other media for distribution to consumers and business users on a mass scale. Establishments in this segment are usually either subsidiaries of companies that create the software, movies, or recordings or are independent firms licensed by such companies as distributors. Recent developments. The rapid pace of innovation in electronics technology creates a constant demand for newer and faster products and applications. This demand puts a greater emphasis on R&D than is typical in most manufacturing operations. Being the first firm to market a new or better product can mean success for both the product and the firm. Even for many relatively commonplace items, R&D continues to result in better, cheaper products with more desirable features. For example, a company that develops a new kind of computer chip to be used in many brands of computers can earn millions of dollars in sales until a competitor is able to improve on that design. Many employees, therefore, are research scientists, engineers, and technicians whose job it is to continually develop and improve products. The product design process includes not only the initial design, but also development work, which ensures that the product functions properly and can be manufactured as inexpensively as possible. When a product is manufactured, the components are assembled, usually by soldering them to a printed circuit board by means of automated equipment. Hand assembly of small parts requires both good eyesight and coordination, but because of the cost and precision involved, assembly and packaging are becoming highly automated. Globalization has become a major factor in the electronics manufacturing industry, often making it difficult to distinguish between American and foreign companies. Many U.S. companies are opening plants and development centers overseas and overseas companies are doing the same in the United States. Many products are being designed in one country, manufactured in another, and assembled in a third. The United Sates electronics industry tends to focus on high-end products, such as computers and microchips. Even so, many components of final products manufactured in the United States are produced elsewhere and shipped to a U.S. plant for final assembly.

About half of all employees work regular 40-hour weeks, but pressure to develop new products ahead of competitors may result in some R&D personnel working extensive overtime to meet deadlines. The competitive nature of the industry makes for an exciting, but sometimes stressful, work environment—especially for those in technical and managerial occupations. In general, those working in computer and electronics manufacturing—even production workers—enjoy relatively good working conditions. In contrast to those in many other manufacturing industries, production workers in this industry usually work in clean and relatively noise-free environments. Workers in semiconductor product manufacturing must wear special outer garments known as "bunny suits" to avoid bringing dust or other contamination into the manufacturing area, which is known as a "cleanroom." Workers in R&D generally work in offices or laboratories, depending on their specific jobs. In some firms, R&D departments are located close to the production floor to facilitate cooperation between engineers who design new products and production workers who build the products. This helps engineers to customize their designs to fit the manufacturing process, making it easier to bring new products to market. In 2008, the rate of work-related injuries and illnesses was lower than the average for the private sector. However, some jobs in the industry may present risks. For example, some workers who fabricate integrated circuits and other components may be exposed to hazardous chemicals, and working with small parts may cause eyestrain.

Training for engineering technicians is available from a number of sources. Although most employers prefer graduates of 2-year postsecondary training schools—usually technical institutes or junior colleges—training in the Military or through proprietary schools also may meet employer requirements. Engineering technicians should have an aptitude for math and science. Entry-level technicians may begin working with more experienced technicians or engineers. Advancement opportunities for experienced technicians may include supervisory positions or movement into other production and inspection operations. Advancement for technical workers comes in a variety of forms, depending on the goals of individual workers and the needs of the company. Because companies often are founded by professionals with technical backgrounds, opportunities for advancement into executive or managerial positions may arise for experienced workers who keep up with rapid changes in technology and who possess the business expertise necessary to succeed in a fast-changing economy. Top engineers and other technical professionals are often given a great deal of flexibility in their work and offered excellent compensation. Due to the rapid pace of technological development, technical workers must constantly update their skills and knowledge base to stay abreast. Also, due to the global nature of computer and electronic product manufacturing, knowledge of another language or culture is emerging as a desired qualification for workers in this industry. Other qualifications. Although a manufacturing assembly worker generally needs only a high school diploma, an assembler in the computer and electronic product manufacturing industry may need more specialized training or experience. Precision assembly work can be extremely sophisticated and complex, and some jobs may even require formal technical training. A certificate or associate degree in semiconductor technology or high-tech manufacturing is good preparation for semiconductor processor operator positions. Certification and advancement. Advancement opportunities depend not only on work experience, but also on the level of technical training and the ability to keep up with changing technology. Production workers may advance into more responsible positions, as well as team leadership positions. Experienced workers may work directly with engineers to determine how production methods can be improved.

The computer and electronic product manufacturing industry is characterized by rapid technological advances and has grown faster than most other industries over the past several decades, although rising costs, reduced domestic market share, and the rapid pace of innovation continue to pose challenges. Employment change. Innovation will continue to drive employment growth within some industry segments. Smaller, more powerful computer chips are constantly being developed and incorporated into an even wider array of products, and the semiconductor content of all electronic products will continue to increase. New opportunities will continue to be created by the growth of digital technology, artificial intelligence, and nanotechnology, as well as the expansion of the Internet and the increasing demand for global information networking.