Electronic Component Manufacturers NAICS 334416, 334417, 334419

Sep 2, 2025 - Federal Appeals Court Rules Against Trump Administration Tariffs

• The US Court of Appeals for the Federal Circuit has ruled that President Trump overstepped his authority when he declared national emergencies to justify tariffs on many countries. The impact on electronic component manufactures may be mixed, as operating production facilities in several countries is complex. US law “bestows significant authority on the president to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax”, the court said in the 7-4 ruling. Many of President Trump’s steep tariffs are “unbounded in scope, amount and duration”, the ruling added, and “assert an expansive authority that is beyond the express limitations” of the law his administration has cited. The court said that the ruling would not take effect until October 14. The Trump administration is expected to appeal the ruling to the US Supreme Court.
• Electronic component 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.

• Management consulting firm McKinsey has projected a shortage of 90,000 skilled technicians in the US by 2030. Electronic component manufacturers may struggle to fill open positions as a result. McKinsey expects demand for technology skills to rise 20% above 2019 levels (based on hours) by 2030. Many firms are struggling on three fronts: talent acquisition, retention, and organizational health, according to McKinsey. Companies need to respond by getting a strategic grip on the challenge and creating career offerings at least as attractive as those of tech giants that have been more successful on these fronts.
• Electronic component shipments have rebounded from a pandemic-era dip and remain above pre-pandemic levels, according to the US Census Bureau. Electronic component prices decreased slightly during the first half of 2025, according to the US Bureau of Labor Statistics (BLS). Electronic component manufacturing industry employment decreased slightly and average wages for nonsupervisory employees increased slightly during the first five months of 2025, according to the BLS. New orders for electronic components began rising at the start of the coronavirus pandemic and remain above pre-pandemic levels.