The U.S. Census Bureau’s Role in the Electronics Industry
By John MacWilliams, Bishop & Associates Inc.

The Census Bureau is a division of the U.S. Department of Commerce. The Bureau’s roots date back to the early days of the country. Its initial role was to perform a “head count” of U.S. residents. This expanded in the early 1800s to include “industrial pursuits,” or occupations, as they were more commonly known. In 1850 the bureau began collecting social statistics, later adding data on race, health, housing, and transportation. Today the bureau has expanded far beyond its earlier charters, and among other things, conducts a detailed national census (the next census will be in 2010). This helps apportion federal spending, adjust voting districts based on population data, and by its nature, is a target of special interest groups seeking government support or voting power via the results of the census.

International data is available from governments around the world, notably the European Union. Their data can be accessed at http://epp.eurostat.ec.europa.eu/.

Here’s what happens with the U.S. industrial data. Coupled with data from the separately conducted economic census, demographic and economic surveys, the Census Bureau provides federal, state, and local governments, scholars, industry, and other planners with data they need to build schools, plan highways, and conduct business and industry. Industrial data—including that relating specifically to the electronics industry and connectors, is discussed below. More detailed analyses can be conducted by using the various Census Bureau web links that access industrial data. This data is vast, and by nature, difficult to find and navigate unless you have the proper NAICS codes and some experience navigating the many web pages and documents. A complete list of electronics products codes and definitions is posted at  http://www.census.gov/eos/www/naics/. 

  • Computer and Electronic Products: 334

  • Computer and Peripheral Equipment Manufacturing: 3341

  • Communications Equipment Manufacturing: 3342

  • Audio and Video Equipment Manufacturing: 3343

  • Navigational, Measuring, Electromedical, and Control Instruments Manufacturing: 3345

  • Manufacturing and Reproducing Magnetic and Optical Media 3346

  • Semiconductors and other Electronic Components 3344

  • Semiconductors: 334413

  • Electronic Connectors: 334417

Most electronics are under NAICS codes 334111 through 334419. Electrical equipment is under NAICS 335.

You’ll notice that product categories often use what appears to be outdated product terminology. The bureau has the difficult job of covering all bases and providing continuity to historical data. Because of this enormous task, data is slow in being published; there is typically a one to two-year lag time. Shown below are various data points accessed from the Census.gov website: 

Table 1: Electronic Connectors—Imports and Exports 2008 (NAICS 334117)
Source: http://censtats.census.gov/cgi-bin/naic3_6/naicMonth.pl


 

Table 2: Employment/Unemployment Computer and Electronic Products
Series Id: CES3133400001, Seasonally Adjusted
Super Sector: Manufacturing
Industry: Computer and Electronic Products
NAICS Code: 334
Data Type: All Employees x Thousand


Source: http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?series_id=CES3133400001&data_tool=XGtable

 

Table 3: U.S. Computers and Peripheral Equipment Manufacturers Shipments in 2007
Current Industrial Reports 2007
Revised 08/07/08


Source: http://www.census.gov/cir/www/334/mq334r.html

Notes: Additional codes apply; Data which is hidden due to single company market share is designated by X; Ratio of U.S. shipments vs. imports for 334111 Computers equals 53 percent of the units, 99 percent of dollars.

* Includes imported parts and subassemblies in final shipped product.
 

Table 4: 2006 Annual Survey of Manufacturers—Selected Electronics Data

The charts and tables below provide information on select connector market segments.
 

Table 5: All U.S. Non-Defense Manufacturing Industry—Shipments 1992-2006

U.S. Manufacturing Data = Value of Shipments—Most market segments include foreign content, which is significant in electronics
14-year Non-Defense Manufacturing 1992-2006 = $2.789T - $4.439T= 3.4 percent CAGR
From Last Peak: 2000-2006 = 2.1 percent CAGR
From Last Valley: 2002-2006 = 4.8 percent CAGR

Manufacturing began to rebound in 2004, which was helped by the weaker U.S. dollar. The data does not include 2008, which marks the start of the recession.
 

Table 6: U.S. Non-Defense Communication Equipment—Shipments 1992-2006


 

Table 7: U.S. Computer and Related Equipment—Shipments 1992-2006


 

Anticipated manufacturing trends: 

  • PC motherboard assembly is now 100 percent off shore.

  • Desktop PCs have somewhat matured; the future will depend on upgrade cycle, emerging markets, and possibly, Windows 7.

  • Notebook PC manufacturing design and assembly is now 90 percent off shore (Taiwan and China).

  • Server market has shifted to X86 PC/Linux; an easy migration from off-shore PC assembly.

  • Rack and blade server designs support notebook-like small form factor manufacturing, as in Taiwan and China.

  • Peripheral equipment such as printers, modems, routers, USB hubs are now solidly manufactured off shore.

  • Super computers are using PC-like components via massively parallel systems.

  • The 2009 recession has hit desktops hard, although a smaller impact is expected on notebooks.

See also Semiconductor and Electronic Component Current Industrial Reports (CIRs) at:
http://www.census.gov/cir/www/334/ma334q.html

John MacWilliams
Senior Consultant and Analyst, Bishop & Associates Inc.
 John MacWiIliams has been in the electronics industry for over 40 years. His main areas of experience have included: U.S. competitiveness programs, market research studies, authored articles, field sales and management, product marketing management, strategic marketing, new product planning, venture development, advertising and media relations, direct sales, manufacturers representative, distribution sales management, and international marketing. MacWilliams has worked with AMP, Diceon Electronics, TRW, and IRC in marketing management positions. Prior to joining Bishop & Associates, MacWilliams served as the group director of marketing and new product planning for AMP.

MacWilliams is a graduate of Lehigh University, where he studied business management and engineering.
 
 

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