Employment Security Department
Labor Market & Economic Analysis Branch
Electronic and Other Electrical Equipment and Components
Overview
Electronics—with semiconductor devises and integrated circuitry—has revolutionized modern
manufacturing and information systems. With its continuous stream of technological innovation,
electronics has become the cornerstone of products, services, and processes that now pervade virtually
every aspect of contemporary life. Indeed, it is difficult to think of a product or service in whose
production or use has not been affected in some fashion by electronics. Numerous products and
services—household appliances, motor vehicles, computers and office equipment, automated production
processes, avionics, communications, complex weapons systems, and a myriad others—are wholly
dependent upon electronics.
The importance of the electronic and electrical equipment industry lies in its pivotal role in the high
technology orientation of the nation’s economy, in particular, the strong interrelationship that exists
between economic growth and productivity on the one hand and technological innovations on the other.
Beyond its technological importance, electronic and electrical equipment is one of the leading
manufacturing industries of the United States. In 1998, electronic and electrical equipment employed 1.7
million workers with shipments valued in excess of $400 billion.
Scope and Definitions
This industry report uses industry definitions and concepts that underlie the U.S. government’s Standard
Industrial Classification (SIC) system. In the SIC system, electronic and electrical equipment and
components is a major industry, one of twenty such industries that form the manufacturing sector, entitled
food and kindred products. According to the Standard Industrial Classification Manual, there are thirtyseven separate electronic and electrical equipment industries. Each of the approximately 17,200
electronic and electrical equipment plants operating in the United States in 1998 was placed in one of
these thirty-seven industry subsectors, and their electronic and electrical equipment products were further
divided into 101 well-defined electronic and electric equipment product classes.
Electronic and electrical equipment and components (SIC 36) is organized into the following eight major
groups:
 Electric transmission and distribution equipment (SIC 361)—including transformers,
power switches, circuit breakers and switchboards;
 Electrical industrial apparatus (SIC 362)—including motors and generators, carbon
and graphite products, relays and industrial controls, and electrical industrial
apparatus;
 Housing appliances (SIC 363)—including microwave and convection ovens,
barbecues, freezers and refrigerators, dryers and washers, vacuum cleaners, electric
housewares and fans;
 Electric lighting and wiring equipment (SIC 364)—including electric lamp bulbs and
tubes, current- and noncurrent-carrying wiring devices, electric lighting fixtures, and
vehicular lighting equipment;
 Household audio and video equipment and audio recordings (SIC 365)—including
household audio and video equipment and audio tapes and disks;
 Communications equipment (SIC 366)—including telephone apparatus, and radio
and television broadcasting equipment;
 Electronic components and accessories (SIC 367)—including electron tubes, printed
circuit boards, semiconductors, electronic capacitors and resistors, coils and
transformers, and inductors and connectors; and
 Miscellaneous electric machinery, equipment and supplies (SIC 369)—including
batteries, electrical equipment for internal combustion engines, magnetic and optical
recording media and high energy particle acceleration (e.g., laser) systems.
Under this classification, the electronic and electrical equipment industry does not include computers and
office equipment, which is classified under industrial machinery.
Figure 1
Electronic & Electrical Equipment 1996 Value of Production: United States and Washington
Source: U.S. Bureau of the Census, Annual Survey of Manufacturers
60.0%
Share of Total Production
50.0%
United States
W ashington
40.0%
30.0%
20.0%
10.0%
0.0%
Electrical industrial Electric lighting & Household audio &
apparatus
wiring equipment
video equipment
Communications
equipment
Electronic
components &
accessories
Other electronic &
electrical
equipment
Semiconductors
The lion’s share of U.S. and Washington employment and production in electronic and electrical
equipment is found in electronic components and accessories. These semiconductors are the
fundamental building blocks for the electronics industry. Numerous industries, such as computer,
telecommunications, instruments, medical equipment, and transportation use these electronic component
products. In 1998, 39 percent of total U.S. employment and production was in semiconductors and other
components. For Washington, more than half of the state’s employment and production in electronic and
electrical equipment was in semiconductors and other components.
Technological innovation is the driving force behind this leading edge semiconductor industry. The
history of the semiconductor industry during its forty years of existence is one of continuous technical
progress that has the enhanced component performance and reliability, increased the variety of
components, and increased component integration. A major factor in accelerating demand is the
significant growth in applications. The importance of semiconductors derives not so much from its
pervasive use as from the fact that technological progress in many of these end-use markets (e.g.,
computers, telecommunications, industrial automated processes, instruments, military equipment) cannot
be disassociated with semiconductor technology.
Current Status
In 1998, Washington electronic and electrical equipment industry employed 18,200 workers; representing
roughly 5 percent of the state’s manufacturing work force. Recent growth in electronic and electrical
equipment has been explosive; since 1992 the industry has added more than two-fifths of its current work
force. Recent growth of the industry has been advanced by major plant expansion announcements by
world-wide leaders in the semiconductor industry—Intel, SEH America, and Matsushita. However, the
Asian financial crisis has sent a chill throughout the national semiconductor industry. Semiconductor
firms in Washington State have not escaped unscathed, resulting in cancelled plans and closures.
Figure 2
Employment in Washington Electronic & Electrical Equipment Industry, 1961-1998
Source: Washington Employment Security Department
20,000
18,000
16,000
Total employment
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
1961
1964
1967
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
Similar to the national industry, electronic and electrical equipment in the state is dominated by the
electronic components and accessories subsector, which accounts for over a half of the total employment
in electronic and electrical equipment. Formerly the largest subsector, communications equipment now
accounts for about 17 percent of electronic and electrical equipment’s total employment. Of the various
subsectors, household audio and video equipment and electronic components have been the stellar
performers since 1981, expanding seven-fold and three-fold, respectively.
Figure 3
Number of Employers in Washington Electronic and Electrical Equipment Industry, 1981-1998
Source: Washington Employment Security Department.
400
Number of establishments
350
300
250
200
150
100
50
0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Electronic components
Other electronic & electric equipment
Figure 4
Employment in Washington Electronic Components & Accessories and Other Electronic & Electrical
Equipment, 1981-1998
Source: Washington Employment Security Department.
20,000
18,000
16,000
Total employment
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Electronic components & accessories
Other electronic & electric equipment
Electronic and electrical equipment in Washington is largely composed of small shops that manufacture
electronic equipment and components, produce finished products, and do custom work for industrial
niches. Seven of the subsectors (electric transmission and distribution, electric industrial apparatus,
household appliances, electric lighting and wiring equipment, household audio and video equipment,
communications equipment, and miscellaneous electrical machinery) account for about two-thirds of the
total 340 establishments, yet they average around 38 employees per establishment. By contrast, the
electronic components subsector averages over 80 employees per establishment. Over 55 percent of all
electronic components workers are found in establishments with 250 or more employees.
Figure 5
Size of Establishments of Washington Electronic and Electrical Equipment Industry, 1998
Source: Washington Employment Security Department
Share of total employment
45.0%
40.0%
State
35.0%
Electronic & electrical equipment
Electronic components & accessories
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
1-19
20-49
50-99
100-249
N umber of employees per establishment
250-499
500+
Average covered wages for electronic and electrical equipment workers was $37,223 in 1998, about 10
percent above the statewide nonfarm average of $33,922. Electronic components employees, earned
slightly less than the industry average at $35,009. The distribution of hourly wages for both electronic
and electrical equipment and electronic components is similar to the state, with a pronounced disposition
toward lower hourly wages. Nearly sixty percent of all workers in the electronic and electrical equipment
industry earns less than $12 per hour, compared with all nonfarm workers in the state in which 46 percent
earn between $6 and $12 per hour.
Table 1
Real Average Wages for Washington Covered Electronic & Electrical Equipment Workers, 1981-1998
(1998$)
Sources: Washington Employment Security Department, U.S. Bureau of Economic Analysis
Sector
1981 1983 1985 1987 1989 1991 1993 1995 1997 1998
Electric Distribution Equip.
$31,769 $32,220 $32,744 $30,730 $31,374 $31,944 $33,393 $36,754 $37,557 $39,548
Electrical Industrial Apparatus
$32,049 $34,357 $32,854 $32,027 $30,444 $32,074 $30,503 $31,694 $34,492 $35,594
Household Appliances
$34,136 $32,761 $29,498 $31,485 $27,140 $27,097 $30,759 $27,606 $32,839 $33,474
Electric Lighting & Wiring Equip.
$26,292 $26,212 $25,905 $27,248 $26,851 $27,073 $28,339 $26,240 $30,887 $29,479
Household Audio & Video Equip.
$28,142 $24,598 $24,993 $24,321 $23,977 $24,118 $26,104 $27,364 $28,494 $28,711
Communications Equip.
$34,004 $35,972 $38,161 $39,774 $32,197 $41,332 $35,606 $40,026 $45,164 $47,636
Electronic Components and Access $28,885 $32,576 $31,648 $31,418 $31,298 $32,429 $31,210 $32,586 $35,205 $36,740
Misc. Electrical Equip. & Supplies
$31,095 $33,903 $23,347 $23,496 $20,630 $19,530 $24,048 $24,237 $29,032 $34,106
Total, Electronic & Electrical Equip. $31,572 $33,481 $33,243 $33,470 $29,906 $31,553 $30,814 $32,557 $35,923 $37,223
Total State Manufacturing
$38,352 $37,909 $38,024 $37,876 $37,338 $37,667 $38,018 $38,942 $40,954 $42,247
Total State Nonfarm
$28,783 $27,789 $27,313 $27,304 $27,167 $27,928 $28,575 $29,046 $31,504 $33,922
Figure 6
Average Hourly Wages for Washington Electronic & Electrical Equipment Workers, 1997
Source: Washington Employment Security Department
25.0%
State
Share of Total Employment
20.0%
Electronic & electrical equipment
Electronic components & accessories
15.0%
10.0%
5.0%
0.0%
<$6
$6-$8
$8-$10
$10-$12 $12-$14 $14-$16 $16-$18 $18-$20 $20-$22 $22-$24 $24-$26
>$26
A verage Hourly W age
The labor force in the electronic and electrical equipment sector is dominated by operatives and laborers.
Common electronic and electrical equipment occupations within this group are assemblers, machinists,
inspectors and graders. Professional and technical and clerical occupations are also important in
electronic and electrical equipment. Although the majority of electronic components workers are within
the operatives and laborer grouping, a sizable share of the subsector’s employees are classified as
professional and technical workers. This greater proportion of professional and technical helps to explain
the difference in wages between electronic components and the rest of electronic and electrical
equipment.
Table 2
Occupational Profile of Electronic & Electrical Equipment Workers in Washington, 1998 and 2008
Source: Washington Employment Security Department
Estimated 1998
Projected 2008
Percent
of
Percent of
Electronic & Electrical Equipment, SIC 36
Estimated
Total
Projected
Total
Employment Employment Employment Employment
Managerial & Administrative
Professional, Paraprofessional & Technical
Sales & Related Occupations
Clerical & Administrative Support
Service Occupations
Production, Operating & Maintenance
Operators, Helpers & Laborers
Undefined Occupations
TOTAL
1,493
2,576
472
1,748
75
1,750
7,825
1,889
17,828
8.4%
14.5%
2.7%
9.8%
0.4%
9.8%
43.9%
10.6%
100.0%
2,194
4,320
645
2,304
93
2,331
12,082
3,071
27,040
8.1%
16.0%
2.4%
8.5%
0.3%
8.6%
44.7%
11.4%
100.0%
Table 3
Occupational Profile of Electronic Components Workers in Washington, 1995 and 2005
Source: Washington Employment Security Department
Estimated 1995
Projected 2005
Percent of
Percent of
Electronic Components, SIC 367
Estimated
Total
Projected
Total
Employment Employment Employment Employment
TOTAL
Managerial & Administrative
Professional/Paraprofessional & Technical
Sales & Related
Clerical & Administrative Support
Service
Agricultural, Forestry, Fishing & Related
Product/Construct/Operate/Maintenance/Material Handling
6,703
564
1,222
189
851
50
0
3,827
100.0%
8.4%
18.2%
2.8%
12.7%
0.7%
0.0%
57.1%
13,003
1,108
2,744
389
1,577
88
0
7,096
100.0%
8.5%
21.1%
3.0%
12.1%
0.7%
0.0%
54.6%
Note: Estimated employment and projected employment are harmonized with ES-202 and LongTerm
Economic Forecasts produced by LMEA Unit; Occupational group shares are consistent with prior
surveys produced by OES Unit.
Contribution of Electronic and Electrical Equipment to the Washington State Economy
Compared to the nation, the relative importance of electronic and electrical equipment to the Washington
economy is low. Until 1996, the index of specialization for Washington electronic and electrical
equipment has remained below 0.5 since 1987 (an index of 1.0 signals the same importance of an
industry for Washington as for the U.S.). The principal reason behind electronic and electrical
equipment’s increased relative importance is the electronic components subsector. Since 1993,
electronic components’ relative importance has trended upward; its index of specialization in 1996 was
0.75.
Figure 7
Index of Specialization: Washington Electronic & Electrical Equipment, 1987-1996
Source: U.S. Bureau of the Census, Annual Survey of Manufacturers
0.80
0.70
Index of specialization
0.60
0.50
0.40
0.30
0.20
0.10
0.00
1987
1988
1989
1990
1991
1992
Electronic & Electrical Equipment
1993
1994
1995
1996
Electronic Components
Electronic components is producing an increasing share of electronic and electrical equipment’s total
production. In 1987, establishments produced $400 million of electronic components, 45 percent of the
total value of production for the state’s electronic and electrical equipment industry. By 1996, electronic
components’ share of total value of production ($2.41 billion) for electronic and electrical equipment had
increased to 52 percent.
Although most electronic and electrical equipment manufacturers in Washington service regional and
domestic markets, an increasing share of production is being exported to foreign customers. According
to a recent study, Foreign Exports and the Washington State Economy; more than one-fourth of $2.21
billion of electronic and electrical equipment production in 1995 was exported to foreign markets. In
1998, over $980 million of electronic and electrical equipment produced in Washington was exported to
foreign markets.
Outlook
Electronic and electrical equipment has outperformed the state economy during the last quarter century.
Employment in electronic and electrical equipment has risen at a robust 5.6 percent average annual pace
since 1971, significantly greater than total nonfarm employment (3.2 percent). Domestic and foreign enduse markets for electronic and electrical equipment are expected to remain strong for the next twenty-five
years. The Semiconductor Industry Association has forecast that between 1999 and 2001, global sales
of semiconductors will increase between 17-19 percent a year. U.S.-based semiconductor manufacturers
will slightly increase their share of the global market to one-third of the predicted $222 billion. The result
of this bright outlook is continued expansion within the Washington electronic and electrical equipment.
By the year 2020, electronic and electrical equipment manufacturers are forecast to employ 29,650
workers, an average annual growth rate (2000-2020) of 2.6 percent. For the electronic components
subsector, employment is forecast to grow at an annual rate of 4.6 percent.
Figure 8
Washington Electronic & Electrical Equipment Wage & Salary Employment Forecast, 2000-2020
Sources: Washington Office of Financial Management, Washington Employment Security Department
35,000
30,000
Total employment
25,000
20,000
15,000
10,000
5,000
0
1995
2000
2005
Electronic components
2010
2015
Other electronic & electric equipment
2020