Study: U.S. Electronics Manufacturing Supports 5.2 Million Jobs and $1.8 Trillion in Output – TVTechnology

Report on the Economic Impact of U.S. Electronics Manufacturing and its Alignment with Sustainable Development Goals

Executive Summary

A recent report from the Global Electronics Association, titled “Powering the U.S. Economy: The Economic Reach of Electronics Manufacturing,” details the significant contributions of the electronics manufacturing sector to the United States economy. The findings underscore the industry’s critical role in advancing several key United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 4 (Quality Education). The sector is a cornerstone of economic stability, driving innovation, supporting high-wage employment, and reinforcing supply chains essential for national competitiveness.

Contribution to SDG 8: Decent Work and Economic Growth

The electronics manufacturing industry is a powerful engine for sustainable economic growth and the creation of decent work, directly supporting the targets of SDG 8. The report quantifies this impact with the following data:

• Total Economic Output: The industry generates $1.8 trillion in total economic output.
• GDP Contribution: It contributes $853 billion to the U.S. gross domestic product (GDP).
• Employment: The sector directly and indirectly supports 5.2 million American jobs.
  • Direct employment accounts for 1.3 million high-skill roles.
  • Each direct job in the sector supports an additional three jobs across the wider economy.
• High-Quality Employment: The average annual wage is $156,000, which is over 20 percent higher than the average for the broader manufacturing sector, promoting productive employment and decent work for all.
• Economic Multiplier Effect: Every dollar of direct output from the industry generates an additional $2.25 in total economic activity, demonstrating its integral role in fostering sustained and inclusive economic growth.

Advancing SDG 9: Industry, Innovation, and Infrastructure

The report highlights the sector’s function as a key anchor for innovation and resilient infrastructure, aligning with the objectives of SDG 9. By fostering a robust domestic manufacturing base, the industry strengthens national supply chains and enhances global competitiveness.

Key Findings Related to SDG 9:

1. Pivotal Role in Global Supply Chains: In 2023, global trade in electronic components surpassed that of finished goods by $408 billion, illustrating the industry’s foundational role in international supply networks.
2. Fostering Innovation Hubs: The industry’s footprint is concentrated in key high-tech hubs, promoting regional innovation ecosystems.
   • California: Leads with 260,000 direct jobs and $364 billion in total output.
   • Texas: Supports over 330,000 total jobs in semiconductor, defense, and communications technologies.
   • Oregon, Massachusetts, and New York: Anchor specialized clusters in advanced fabrication and instruments.

Challenges and Policy Recommendations for Sustainable Development

While a powerful economic driver, the industry faces challenges that threaten its long-term competitiveness and sustainable growth. The report identifies a persistent shortage of skilled workers, a critical issue that directly impacts SDG 4 (Quality Education) and SDG 8. To address these vulnerabilities and further align with the SDGs, the report proposes a strategic policy framework.

Policy Recommendations for Sustainable Industrialization:

1. Workforce Investment (SDG 4 & SDG 8): Develop and sustain a next-generation workforce through strategic investment in education and training. This is essential for supporting advanced manufacturing and ensuring a pipeline of skilled talent capable of driving systems-level innovation.
2. Infrastructure Modernization (SDG 9): Upgrade the physical and digital infrastructure necessary for state-of-the-art fabrication and assembly. This investment is crucial for building resilient infrastructure and promoting inclusive and sustainable industrialization.
3. Strategic Supply-Chain Partnerships (SDG 9 & SDG 12): Strengthen and diversify U.S. supply chains to safeguard national security and enhance global competitiveness. This promotes more resilient and sustainable production patterns, contributing to the goals of responsible consumption and production.

Sustainable Development Goals (SDGs) Addressed in the Article

1. SDG 8: Decent Work and Economic Growth

   • The article extensively discusses the electronics manufacturing industry’s significant economic contributions, including its $853 billion contribution to U.S. GDP, $1.8 trillion in total economic output, and support for 5.2 million American jobs. It also highlights the creation of high-wage employment, directly connecting to the goal of promoting sustained, inclusive, and sustainable economic growth and decent work for all.

2. SDG 9: Industry, Innovation, and Infrastructure

   • The article emphasizes the role of electronics manufacturing in driving innovation, strengthening supply chains, and underpinning national competitiveness. It explicitly mentions the need for “Infrastructure Modernization” to upgrade physical and digital infrastructure for fabrication and assembly, which aligns with the goal of building resilient infrastructure and fostering innovation.

3. SDG 4: Quality Education

   • The report identifies a “persistent shortage of skilled workers” as a constraint on growth. It proposes “Workforce Investment” to “develop and sustain a next-generation workforce capable of supporting advanced manufacturing.” This directly relates to the goal of ensuring inclusive and equitable quality education, particularly in the context of technical and vocational skills for employment.

4. SDG 17: Partnerships for the Goals

   • The article calls for “Strategic Supply-Chain Partnerships” to strengthen and diversify U.S. supply chains. This recommendation to build partnerships to enhance resilience and global competitiveness connects to the goal of strengthening the means of implementation and revitalizing global partnerships for sustainable development.

Specific SDG Targets Identified

1. SDG 8: Decent Work and Economic Growth

   • Target 8.1: Sustain per capita economic growth in accordance with national circumstances. The article’s focus on the industry’s $853 billion contribution to GDP and $1.8 trillion in total economic output directly relates to sustaining economic growth.
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article highlights that the industry is a “key anchor of the U.S. economy—driving innovation” and is concentrated in “key high-tech hubs,” which points to achieving productivity through technology and innovation.
   • Target 8.5: By 2030, achieve full and productive employment and decent work for all. The article mentions the industry directly employs 1.3 million Americans and supports a total of 5.2 million jobs, with average annual wages of $156,000, reflecting progress toward this target.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product. The article’s entire focus is on the economic reach and importance of the electronics manufacturing industry, detailing its share of employment and GDP.
   • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors… encouraging innovation. The report’s conclusion that the industry drives innovation and the policy recommendation for “systems-level innovation” directly align with this target.
   • Target 9.a: Facilitate sustainable and resilient infrastructure development. The policy recommendation to “Upgrade the physical and digital infrastructure essential for state-of-the-art PCB fabrication and electronic assembly” is a direct call to action for this target.

3. SDG 4: Quality Education

   • Target 4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship. The article identifies a “persistent shortage of skilled workers” and calls for “Workforce Investment,” directly addressing the need for relevant technical skills in the manufacturing sector.

4. SDG 17: Partnerships for the Goals

   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The recommendation for “Strategic Supply-Chain Partnerships” to “safeguard national security and enable domestic manufacturers to compete globally” implies the formation of such multi-stakeholder partnerships.

Indicators for Measuring Progress

1. Indicators for SDG 8

   • Contribution to GDP: The article states the industry contributes “$853 billion to U.S. gross domestic product (GDP).” This is a direct quantitative indicator of economic growth.
   • Employment numbers: The data points of “1.3 million” direct jobs and a total of “5.2 million” supported jobs serve as indicators for employment.
   • Wage levels: The “average annual wages of $156,000—more than 20 percent above the broader manufacturing sector” is a key indicator for decent work.

2. Indicators for SDG 9

   • Economic Multiplier Effect: The statement that “Every dollar of direct output generates $2.25 in total economic activity” serves as an indicator of the industry’s integration and impact on the broader economy.
   • Investment in Infrastructure: While no specific number is given, the policy recommendation to “Upgrade the physical and digital infrastructure” implies that tracking investment in this area would be a relevant indicator.

3. Indicators for SDG 4

   • Skilled Labor Gap: The mention of a “persistent shortage of skilled workers” acts as a qualitative (and potentially quantifiable) negative indicator, highlighting the gap that needs to be closed to meet the target.

4. Indicators for SDG 17

   • Trade and Supply Chain Data: The fact that “Global trade in electronic components exceeded finished goods by $408 billion in 2023” underscores the pivotal role of international supply networks and the importance of partnerships within them.

Summary Table: SDGs, Targets, and Indicators

Source: tvtechnology.com