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From the Editor: Celebrating U.S. Labor
December 31, 1969 |Estimated reading time: 4 minutes
With the U.S. presidential race in full swing, Labor Day gains fresh importance. Every politician wants to be portrayed as the champion of the American worker. Labor Day is one of those strange holidays that evolved without a concrete birthday or significant historical event as a kick-off point, and even the U.S. Department of Labor is unsure about exactly who started the holiday. We do know that the celebration of the strength and capabilities of American labor began in New York City in 1882, becoming a national holiday by 1894. Now, 126 years after that first demonstration, we should have a look at how the American electronics manufacturer is faring.
The Department of Labor's grandiose explanation of Labor Day, "The vital force of labor added materially to the highest standard of living and the greatest production the world has ever known and has brought us closer to the realization of our traditional ideals of economic and political democracy. It is appropriate, therefore, that the nation pay tribute on Labor Day to the creator of so much of the nation's strength, freedom, and leadership the American worker," belies the constant struggle for American laborers to remain relevant and successful.
Department of Labor Secretary Elaine L. Chao states that service-providing industries dominate American workforce opportunities, in employment and output. More than three out of four jobs are attributed to service-providing industries. Despite this, the goods-producing side of the economy is expected to grow in terms of real output. Continued manufacturing productivity gains should negate any prospect for a reversal of this shift in employment from goods to services. She continues, "Growth in manufacturing is concentrated in the production of computers, semiconductors, and communication equipment...medical equipment; transportation equipment; plastics and chemicals; and [industrial] machinery. This list highlights America's competitive advantage in the production of high-valued-added goods that use advanced manufacturing techniques and a highly skilled workforce." Employee training, certifications, and education are more important than ever for every level of electronics production, particularly in those jobs producing electronics for high-reliability medical, military, transportation markets. Check out "Growth Opportunities for SMT Equipment Providers in the North American Medical Device Industry," from Frost & Sullivan, for an in-depth look at the U.S.'s role in producing high-value medical electronics. Unlike many high-volume/low-reliability assemblies, regulations, costs, and critical application knowledge keep this genre of electronics production at home.
The U.S. recently announced the 2007 laureates for the National Medal of Technology and Innovation, celebrating U.S. companies and individuals that advanced scientific capabilities and marketplace innovations. This year, three of the eight laureates directly benefited the electronics industry. Armand V. Feigenbaum (Pittsfield, Mass.) led development of the economic relationship of quality costs, productivity improvement, and profitability that define the "Total Quality Management" approach for achieving performance excellence and global competitiveness. C. Grant Willson (Austin, Texas) created novel lithographic imaging materials and techniques that have enabled the manufacturing of smaller, faster, and more efficient microelectronic components. Finally, Skunk Works (Palmdale, Calif.), a division of Lockheed, was recognized for developing cutting-edge aircraft, technologies, and systems solutions for the U.S. government, including "stealth" capabilities. The National Medal of Technology and Innovation was created by Congress in 1980 and has been presented by the President of the United States since 1985. A distinguished, independent committee appointed by the Secretary of Commerce evaluates the merits of all candidates nominated through an open, competitive solicitation process. Committee recommendations are forwarded to the Secretary who makes recommendations to the President for a final decision. The National Medal of Technology and Innovation was created by Congress in 1980 and has been presented by the President since 1985. The laureates will be honored at the White House at the end of September.
Returning to statistics, one measure of North American (comprising the U.S. and Canada) electronics production is IPC's monthly book-to-bill ratio report. The report has shown seasonal fluctuations over the past several years, but maintained a steady level in terms of volumes and balance between shipments and new orders booked for PCBs. PCBs manufactured by U.S.- and Canada-based fabricators are not always made in these countries, but the vast majority between 80 and 90% generally are. September, the beginning of the holiday production season, often boasts the highest orders booked to product shipped ratios of the year. With the U.S. facing tenuous economic times and an election year, holiday purchasing is a wildcard for the product developers, prototypers, and final-test and rework specialists that serve the consumer electronics market domestically.
The tech industry is also largely expected to weather the current credit crisis better than the majority of U.S. industries. Tech companies, in addition to retaining strong memories of the early-2000s market crash, are well positioned in terms of financing, inventory control, labor force, and future demand. If you want to see the faces of American electronics workers, the community, we've got just a few examples for you. Take a look inside the operations of Inovar, EPE Corporation, Lightspeed Manufacturing, Intelligent Manufacturing Solutions (IMS), New Brunswick Industries (NBI), and SenDEC. This is a constantly evolving community that adapts to every circumstance and opportunity. It only makes sense to spend at least one day each year celebrating them.
Meredith Courtemanche, managing editor
Where do you see the U.S. electronics manufacturing industry heading? E-mail mcourtemanche@pennwell.com and let us know.