Computer & Peripheral Manufacturers NAICS 3341

Jul 3, 2025 - Supply Chain Uncertainty Prompts Domestic Manufacturing Announcements

• Tech giants including Nvidia, Apple, and IBM have announced major investments in US manufacturing facilities. IBM pledged to invest $150 billion in the US, including on facilities for quantum computer production, over the next five years. Nvidia and Apple have said they would spend about $500 billion each in the country over the next four years. Several analysts told the New York Post that they see the spending commitments as overtures to President Trump, whose tariffs could affect supply chains and raise costs for the technology industry.
• Some electronics products imported to the US have been exempted from President Trump’s reciprocal tariffs, according to US Customs and Border Protection. Profit margins of computer and peripheral manufacturers may be compressed if tariffs are applied to imported manufacturing inputs in the future. The exemption, which comes after the Trump administration imposed a minimum tariff rate of 145% on Chinese goods imported to the US, does not include the 20% tariff on Chinese goods for the country’s alleged role in the fentanyl trade. Computer monitors and various electronic parts are among the exempted products. The exemption applies to products entering the US or removed from warehouses as early as April 5.

• Computer and peripheral manufacturers benefiting from reshoring may also benefit from nearshoring, according to the Reshoring Initiative (RI). Harry Moser, founder of RI, says that if a product is so labor intensive that you can’t bring it to the US, then companies are sometimes surprised to find that wages in Mexico are far lower than in China. The average Mexican manufacturing worker earns $4 an hour, while the rate in China — where wages have been gaining 10% to 15% a year — is currently around $7, and in the US, it’s roughly $23. Products coming from Mexico end up with an average 40% US content, while in China they have 5% US content.
• Computer and peripheral equipment industry sales increased 20.7% year over year and 25.3% quarter over quarter over quarter during the fourth quarter of 2024, according to the US Census Bureau. Computer and peripheral manufactures increased prices slightly during the first half of 2025, according to the US Bureau of Labor Statistics (BLS). Computer and peripheral manufacturing industry employment and wages for nonsupervisory employees increased slightly during the first five months of 2025, according to the BLS.