If you’re interested in electronic manufacturing in the USA, it’s important to understand the industry’s evolution first. The industry has been around for many decades and has experienced significant growth. But it has also faced its share of challenges along the way. Let’s take a virtual look.
Electronic manufacturing in the USA began in the early 1900s when the first electronic devices were invented. These are items like vacuum tubes and radio transmitters. However, it was in the 1960s that the industry leapt off with the making of the integrated circuit (IC). ICs paved the way for the modern electronics industry we know today.
Electronic manufacturing is a major player in the United States economy. The business generates billions of dollars in revenue and provides jobs for millions of people. The industry is not centralized in one specific state or region.
USA Tech Areas
Areas in America With Significant Electronics Manufacturing Presence
Indeed certain areas are particularly strong in electronic manufacturing. These areas are specifically the following:
One state that stands out is California. Silicon Valley, California, is home to some of the grandest names in IT, such as Microsoft, Meta, and etc. These companies, along with many others, have made California the largest tech hub in the world. In fact, California is responsible for a significant portion of the industry’s revenue. The state’s companies employ around 300,000 people in the sector.
Another state that has a strong presence in the biz is Texas. With a growing tech scene and a friendly business climate, Texas has become a popular location for many of these companies. Major corporations like Texas Instruments, Flextronics, and Samsung are all in the Lone Star state.
Other states with a strong presence in electronic manufacturing include Massachusetts, New York, and Illinois. These states are home to many universities and research centers. In turn, these educational facilities drive innovation in the industry. Additionally, the states’ strategic location and access to transportation and shipping networks are ideal.
Major Market Segments
There are several major market segments within the electronic manufacturing industry in the USA. These include:
This market segment includes designing and manufacturing integrated circuits and other semiconductor devices.
Printed Circuit Boards (PCBs)
PCBs are requisite components of electronic devices, and this market segment involves the format and fabrication of these boards.
The market segment includes a wide range of electronic devices used by consumers, such as smartphones, tablets, drones, and more.
In this video, you can see what electronics make up the common smartphone:
Factors Driving Growth
Several causes have fueled the development of electronic manufacturing in the USA over time. These include:
The development of BGAs is only one example of how technical advancements have profoundly benefited the sector. Smaller, faster, and more powerful electronic devices are being made now.
Accessing markets and resources globally has enabled the industry to grow and expand.
The industry is prospering with the increasing demand for electronic devices in both the consumer and business markets.
Challenges Facing the Industry
Despite the significant growth and success in the USA, there are also challenges the business faces. The challenges are:
As more countries enter the electronic manufacturing industry, competition has become more intense. China is perhaps the biggest rival to the US electronics industry due to its significant investments in electronics manufacturing and research and development.
As consumer demand for lower-priced electronic devices continues to increase, manufacturers are under pressure to reduce costs. The sustainability of low-cost and high-quality goods is getting difficult to achieve.
Supply chain disruptions
Natural disasters, pandemics, and other events can disrupt the supply chain, causing delays and other issues for manufacturers. Since the pandemic, US Companies have realized the benefits of digitizing their supply chain operations to increase efficiency and reduce the reliance on manual processes. They have increased their focus on supply chain risk management and contingency planning to minimize the impact of future disruptions.
Major Players of the Electronic Manufacturing Industry in the USA
While big names like Cisco and Dell often come to mind, many other emerging parties are making waves in the industry. As a business owner, do keep an eye on them. They can provide new opportunities for collaboration and innovation.
When it comes to the major customers of the business, it’s a heterogeneous mix of industries. Aerospace and defense companies are some of the biggest customers, requiring special components and technical manufacturing processes. The automotive industry is also a major customer, as electronic components are becoming more integral to vehicles. Other sectors like healthcare, consumer electronics, and telecommunications rely heavily on USA-based electronic manufacturing companies.
There are many things at play in terms of the vying environment. Quality, pricing, and flexibility are all key considerations for customers when choosing an electronic manufacturing company.
Some companies may zone in on certain types of products or manufacturing processes, while others may be more generalized. It’s important that you do your research and choose a manufacturer that aligns with your desires.
Small and medium-sized electronic manufacturing companies (or SMEs) are also critical players in the industry. They may not have the same name recognition as some bigger players. But they offer a level of flexibility and customization that larger companies can only sometimes provide. For example, you need a multilayer Flex PCB or a unique PCB layout. In that case, a smaller manufacturer may better suit your needs.
How to deal with SMEs
We will give you tips to keep in mind when dealing with a US-based SME involved in electronics manufacturing. Here they are:
Be clear and concise in your communication
American culture values direct wording and being clear about your expectations and requirements. Make sure you communicate your needs and expectations succinctly to avoid any misunderstandings.
Time is highly valued in the US business culture, so be mindful of deadlines and make sure you meet them. If you anticipate any delays or issues, communicate them immediately to avoid surprises.
Understand the legal and regulatory requirements
The US has strict regulations regarding electronics manufacturing, so make sure you understand and comply with them. Familiarize yourself with industry standards and regulations to ensure your products meet the requirements.
Build a good working relationship
US businesses value building strong relationships with their partners and suppliers. Take the time to familiarize with people you work with and establish a good rapport with them.
Be prepared for a fast-paced environment
These SMEs often operate in a fast-paced environment where decisions are made quickly. Be prepared to adapt and work efficiently in this type of environment.
They value feedback and are often willing to provide it. If you want to improve your product or service, ask your US-based SME partner for feedback and consider their suggestions.
In the end, understanding the major customers, competitive landscape, and emerging players in the industry is key to making informed decisions and staying ahead of the curve. We hope our writing helps you keep up with the game.
Major Customers of Electronic Manufacturing Companies in the USA
Some specific countries and trade partners that are major customers of electronic manufacturing companies in the USA:
The USA and China have a large amount of trade. The country is also a major customer of companies in the USA. In 2023, China imported electronic products worth $36000 Million from the USA.
Another important trade partner is Mexico. In 2023, Mexico imported electronic products worth approx $21 B billion from the USA.
A significant trade partner with the USA is Canada, which makes sense because the two countries share borders. In 2023, Canada imported electronic products, approx worth $52 billion, from the USA.
One other major customer is Japan. In 2023, Japan imported electronic products worth approx $91 billion from the USA.
Long-term trade partner with the USA and a major customer of electronic manufacturing companies in Germany. In 2023, Germany imported electronic products worth $203 billion from the USA.
A major importer in South Korea. In 2021, South Korea imported electronic products worth $60 billion from the USA.
The Taiwanese people buy lots of electronics from the United States. In 2023, Taiwan imported electronic products worth $30000 million from the USA, making it the eighth-largest customer of the USA’s electronic manufacturing industry.
Lastly, the Netherlands is a significant trade partner with the USA and a major customer of electronic manufacturing companies in the country. In 2023, the Netherlands imported electronic products worth $62 billion from the USA, making it the ninth-largest customer of the USA’s electronic manufacturing industry.
In addition to these nations, France and the United Kingdom are important clients. As you can see, the USA has a substantial global presence in the electronic manufacturing sector. Electronic goods are imported from the nation by a wide spectrum of countries and trading partners.
Applicable Regulations and Standards in Electronic Manufacturing in the USA
When it comes to electronic manufacturing in the USA, companies must adhere to several regulations and standards. These regulations are in there so that your stuff is safe and meets the industry quality standards. In this section, we’ll take a comprehensive tour of the most important ones:
- REACH – Restriction of Hazardous Substances (RoHS)
- ROHS – Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) is a regulation that governs the use of chemicals in the EU.
- UL – Underwriters Laboratories (UL)
- IPC Standards for Class 2 and Class 3 products
- FCC – The Federal Communications Commission (FCC) is a government agency that regulates the use of the electromagnetic spectrum in the USA. The FCC regulates various electronic products, including radios, televisions, and computers.
- ITAR – The International Traffic in Arms Regulations (ITAR) is a set of regulations that governs the export of defense-related articles and services. ITAR compliance is mandatory for companies that manufacture and export defense-related products.
Top Electronic Manufacturing Companies in the USA
Next up, we’re going to list the top 10 companies to give you a good picture of this country’s enormous capacity in the industry.
ACI Technologies, Inc.
ACI Technologies, Inc.
Are you familiar with the Philadelphia-based company ACI? It is an expert in producing test and analytical equipment, with a standout reputation in failure analysis. To get the full scoop on what they offer, check out their website: https://www.aciusa.org/
American Products, Inc.
American Products, Inc.
Have you heard of the company named American Products, which is based in Florida? They specialize in creating SMT PBC, Wire Assembly, and Box Builds, with a strong reputation in Conformal Coating. Their website at https://www.americanproductsinc.com/ is the best place to learn more about what they can do.
Benchmark Electronics Inc.
Benchmark Electronics Inc.
Suppose you are looking for a company with PCB Assembly, precision machining, and mmWav testing expertise. In that case, you should check out Benchmark, based in Maryland. They are particularly known for their engineering capabilities. For more information on their products and services, head to https://www.bench.com/
For those who are searching for a reliable Oregon-based company, Celestics is worth considering. They specialize in Smart Energy, health product electronics, and aerospace equipment and have a great reputation in Capital or Industrial electronics. To get deep into their offerings, visit their website at https://www.celestica.com/
DIGICOM Electronics, Inc.
DIGICOM Electronics, Inc.
When it comes to contract manufacturing services like reflow soldering, optical inspection, and final assembly, California-based DIGICOM is a whiz you can count on. Their reputation in ‘xxx’ speaks for itself. If you’re interested in what they do, their website at https://www.digicom.org/ is the place to go.
Are you familiar with Jabil, a company with many locations, such as North Carolina and New Mexico? They have extensive expertise in creating solutions for circular economies, automation, and Retail Tech. They are particularly renowned for mitigating pathogen migration. To explore everything they have to offer, be sure to check out their website: https://www.jabil.com/
Kimball Electronics Inc.
Kimball Electronics Inc.
They’re worth checking out if you are looking for a top-quality Indiana-based company focused on New Product Integration, Prototyping, and automotive electronics. Their outstanding reputation in RF Design is well deserved. For their website, see: https://www.kimballelectronics.com/
For those searching for a reliable electronic manufacturing company, Mcrofab, based in Texas, is an immaculate choice. They specialize in faster design cycles, strategic sourcing, and procurement with a strong reputation in PCBs. If you’re itching to learn more, their website at https://www.macrofab.com/ is just a click away.
If you’re searching for a Wisconsin-based company with multiple locations worldwide, check out Plexus. They’re great at creating sustainable electronics, with a particular interest in aerospace and defense parts. They have a safe and solid reputation, and they will provide you with additional information by looking up: https://www.plexus.com/en-us/
When it comes to producing Clean Tech, multimedia electronics, and oil and gas electronics, Sanmina is a trusted name in the industry. Based also in Wisconsin, like Plexus, they have an astute reputation in microelectronics. To discover more about their expertise and capabilities, head over to their website at https://www.sanmina.com/
So that’s the list. But do you know that there are alternatives out there that you can explore? They’re much more cost-effective. Let’s discuss this in the next section.
Consider Cost-Effective Alternatives: Chinese Electronic Manufacturers
Regarding electronic manufacturing, China is a popular choice for businesses looking to cut costs and speed up production. In recent years, Chinese electronic manufacturers have proven themselves reliable and cost-effective alternatives to US-based manufacturers.
Benefits and Challenges of Working with Chinese Manufacturers
So why should you consider Chinese electronic manufacturing as a safe alternative? For one, the country has a large and rapidly growing electronics industry, meaning manufacturers have access to the latest technology and equipment. Additionally, the country has a large and skilled workforce, meaning manufacturers can produce high-quality products at a lower cost.
Chinese Electronic Manufacturers are Cheaper
Working with Chinese manufacturers can also offer numerous benefits and challenges. One of the most significant benefits is the cost savings. Since labor costs are lower in China, electronic products are typically less expensive than in the US. Additionally, they often have shorter lead times, allowing businesses to get their products to market more quickly.
But American Electronic Manufacturers Have Some Leverage
However, there are also some challenges to working with Chinese manufacturers. Communication can sometimes be an issue, as language barriers and cultural differences can make it challenging to communicate effectively. Additionally, quality control can be an issue, as some Chinese manufacturers may cut corners to save costs.
While the initial cost of manufacturing in China may be lower, additional expenditures, such as shipping and import tariffs, should be considered. However, many businesses find that the cost savings are significant enough to make working with these manufacturers worthwhile.
Quality is also a crucial factor to consider when working with Chinese electronic manufacturers. While some may be concerned about Chinese-made products’ quality, many reputable manufacturers produce high-quality products.
China-based Chinese electronic manufacturers can offer a cost-effective and speedy alternative to US-based manufacturers. While there are some challenges to working with Chinese manufacturers, the benefits can be noteworthy.
Shenzhen’s Best: PCBMay
Your Responsible Partner from Shenzhen
But there is one company that can give you all the benefits of US-Based electronics companies without the drawbacks—
That’s us, PCBMay! We’re very much commited to excellence. We’ve got the ability to provide customized solutions to meet your requirments. Our team of PCB professionals is dedicated to producing items that meet the highest quality standards.
When you choose us as your China-based EMS, you may be confident that you get the fairest deal possible. Our products are not just low-cost but also of the highest quality. You get the best: China prices for USA-quality! We have years of experience working with clients worldwide, so we understand the importance of meeting deadlines and delivering on our promises.
We are also committed to environmental sustainability. Every step is taken to ensure our manufacturing processes are as eco-friendly as possible. It’s important to take care of the planet while also taking care of your biz.
So if you’re looking for a reliable, responsible partner for your PCB, wire, and assembly needs, look no further than us. Visit our website right away to find out more about our boards, and let us help you grow your business!
Remember, at PCBMay, we’re not just your PCB supplier but your profit partner!