Electronic Component Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,500 electronic component manufacturers in the US develop and sell transformers, connectors, and other miscellaneous electronic components. Miscellaneous electronic components include computer cable sets; crystals and crystal assemblies; filters; harness assemblies; LCD screens; microwave components; phonograph needles; piezoelectric devices; printed circuit laminates; recording heads; rectifiers; resonant reed devices; rheostats; solenoids; switches; and transducers. Firms may also engage in production of related electronic components, such as printed circuit boards, capacitors, resistors, semiconductors, or antennas. Some companies offer engineering or design services.

Rapidly Advancing Technology

The electronics industry is characterized by rapid advances in technology and evolution of standards.

Foreign Production

Operating production facilities in foreign countries is complex and affects a component manufacturer’s responsiveness.

Industry size & Structure

The average electronic components manufacturer operates out of a single location, employs about 58 workers, and generates about $14-15 million in annual revenue.

    • The electronic coil, transformer, and inductor manufacturing industry consists of 338 firms that employ 18,000 workers and generate $4.1 billion annually. The electronic connector manufacturing industry consists of about 156 firms that employ 19,800 workers and generate about $5.9 billion annually. The miscellaneous electronic component manufacturing industry consists of 1,035 firms that employ 51,000 workers and generate $12.3 billion annually.
    • The electronic coil, transformer, inductor, and connector manufacturing industries are concentrated; the top 50 companies account for 75% to 95% of industry revenue. The miscellaneous electronic component manufacturing industry is less concentrated; the top 50 companies account for about 58% of industry revenue.
    • Manufacturers of miscellaneous electronic components account for 55% of industry revenue and 68% of firms. Electronic connector manufacturers account for 27% of revenue and 10% of firms. Electronic coil, transformer, and inductor manufacturers account for 18% of revenue and 22% of firms.
    • Large firms include Pulse Electronics, Bel Fuse, Planar Systems (LCD displays), and Hutchinson Technology (TDK - disk drive components).
    • Large firms may have international operations and serve customers in foreign countries.
                                    Industry Forecast
                                    Electronic Component Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Mar 3, 2023 - Reshoring Activity Remains Strong
                                    • Third quarter 2022 reshoring and foreign direct investments (FDI) reached record levels, according to The Reshoring Initiative. Electronic component manufacturers are likely to benefit from the reshoring of manufacturing activity. FDI was 15% higher than the second quarter — the previous high watermark — with a strong fourth quarter looking to result in a total of more than 350,000 jobs reshored for all of 2022. The Reshoring Initiative's 2022 projection of jobs would mark a nearly 40% improvement over 2021’s total of 255,000. The total number of job reshorings announced since 2010 would top 1.6 million.
                                    • Automakers reported that they sold 13.9 million new cars, trucks, SUVs, and vans in 2022, according to Auto Blog. New auto sales are a driver of demand for many electronic components. Ongoing parts shortages limited factory output amid high demand for new vehicles. It was the lowest sales number since 2011, when the economy was recovering from the Great Recession. Sales were up slightly in the fourth quarter of 2022, however, and inventories grew as parts supplies improved enough to increase production slightly. Sales are expected to increase roughly 1 million in 2023 to around 14.8 million as demand remains strong, but they'll still be far short of the pre-pandemic norm of about 17 million per year.
                                    • Demand for computers, peripherals, and other high-tech products in which electronic components are used is decreasing after a pandemic-driven surge. Semiconductor manufacturer Intel is planning its first major layoffs in almost six years, according to Bloomberg News. The company warned that 2022 sales would be about $11 billion lower than it previously expected. A shift in consumer spending to services and high inflation are key causes of slowing sales, according to industry experts.
                                    • President Biden signed an executive order that is intended to quickly increase domestic production of semiconductors, strengthen semiconductor research, and extend US semiconductor design leadership. The order, which follows the passage of the $280-billion CHIPS and Science Act into law, will establish a 16-member implementation steering council made up of cabinet secretaries and top White House officials from across Biden's national security and economic teams. The order also details Biden's six priorities for implementing the Chips and Science Act in the months ahead. Details include a series of factors that should guide the timely development and oversight of the private sector relationships required for the allocation of funding that is meant to enhance long-term economic and national security by increasing domestic chip manufacturing. The CHIPS and Science Act is a scaled-down version of previous bills. It includes more than $52 billion for US chipmakers as well as tax credits for domestic factories but isn't expected to affect production in the short term. Experts note that it will take companies years to build new factories and otherwise upgrade facilities to tackle chip shortages and increase manufacturing independence.
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