SIC 3678 Electronic Connectors

Contenidos

• NAICS CODE(S).
• INDUSTRY SNAPSHOT.
• ORGANIZATION AND STRUCTURE.
• BACKGROUND AND DEVELOPMENT.
• CURRENT CONDITIONS.
• INDUSTRY LEADERS.
• AMERICA AND THE WORLD.
• RESEARCH AND TECHNOLOGY.
• FURTHER READING.

SIC 3678

This industry is comprised of manufacturers of electronic connectors (e.g., coaxial, cylindrical, rack and panel, and printed circuit connectors). Establishments primarily engaged in manufacturing electrical connectors are classified in SIC 3643: Current-Carrying Wiring Devices; those manufacturing electronic capacitors are classified in SIC 3675: Electronic Capacitors; and those manufacturing electronic coils, transformers, and other inductors are classified in SIC 3677: Electronic Coils, Transformers, and Other Inductors.

NAICS CODE(S)

334417

Electronic Connector Manufacturing

INDUSTRY SNAPSHOT

The health of the electronic connectors industry is tied to that of electronic equipment and other finished-product (e.g., automobile) manufacturers. During the early 2000s the industry was negatively impacted by the overall economy that saw a decline in consumer spending. As a result, after significant growth during the 1990s—with total shipment values reaching $6.12 billion in 2000—by 2002 total shipment values had fallen to $3.62 billion. During 2003 the economy began its recovery, as did the connector industry. Posting a slight increase in shipments in 2003, the industry continued to grow through the mid-2000s. Consumer electronics and computers, as well as a rebounding telecommunications industry, were driving growth.

ORGANIZATION AND STRUCTURE

Within the connector industry, printed circuit connectors accounted for approximately 21 percent of output during the mid-2000s. Cylindrical connectors and coaxial (RF) connectors accounted for 14 percent and 11 percent, respectively. Rack and panel (rectangular) connectors held 8 percent of the market share. Other connector types and parts accounted for the remainder the industry.

Makers of electronic connectors and other passive electronic components must rely on manufacturers of finished products to maintain favorable prices and provide a market for their goods. As is the case in most components industries, military markets generally require the most advanced products, which are usually the most expensive. When an industry such as the PC industry slows or is forced to reduce its prices (the case worldwide in the late 1980s and early 1990s), or when PC prices permanently drop from the pressure of intense competition (as was the case during the mid-1990s), connector manufacturers have difficulty maintaining profits.

Throughout the 1980s and 1990s, the connector industry was overcrowded, with approximately 800 manufacturers worldwide. However, consolidation, mergers, and movement of operations to overseas facilities considerably reduced the number of players in the United States to less than 300 by the mid-2000s. According to the U.S. Census Bureau, in 2003 the industry had 22,921 employees, of which 16,393 were production workers. Employment numbers declined by 42 percent between 1998 and 2003. The 100-plus establishments in Pennsylvania and California combined accounted for 38 percent of the industry in 2003, led by Pennsylvania-based Tyco Electronics, the industry's leader.

BACKGROUND AND DEVELOPMENT

The beginnings of the electronic connectors industry can be traced to products such as the solderless electrical connectors AMP Inc. manufactured for use in aircraft and boats in the 1940s, and the introduction of the printed wiring board in 1936 by Dr. Paul Eisner. The increased use of electronic components, particularly in military applications in the 1980s, was ironically foreshadowed by growth in demand for electrical components in military ships and aircraft during World War II. At the end of the war, contract terminations eliminated many shops. However, the postwar explosion of the semiconductor-related industries eventually made the connectors field more attractive, so that by the early 1990s the number of connector manufacturers had risen to approximately 800.

Challenging operational environments of industry and the military...