Electrical Component Industry Shortages

 By now, you’ve undoubtedly heard about the global supply shortages affecting nearly all industries. From vehicle manufacturing to computer components, nearly every business involved in overseas production has been affected.

The sudden rise in consumer electronics created a demand that the electronics supply chain couldn’t handle during the beginning of the pandemic. Due to worldwide shutdowns creating a pause in production, many companies are now playing catch-up. Moreover, tariffs were imposed on imported Chinese goods, which made the situation more challenging.

Raw materials and bulk electronic component shortages forced manufacturers to remain idle, many with half-finished products. The electronic components in high demand include capacitors, resistors, semiconductors, and other parts. Prices for several raw materials, including copper and steel, have doubled between 2020 and 2021. Semiconductors, microchips, and PCBs are all produced in Asia, so some manufacturers are looking to move their operations back to America to compensate.

Rising prices are also a factor; as demand rises and supply dwindles, costs increase. ElectronicsB2B reported that the semiconductor industry value is expected to increase by 11 percent from 2020 to 2027. Factors such as 5G-based automation, increased chip demand, and geopolitical issues could all play a massive role in whether the semiconductor shortage will ease up any time soon.

Labor shortages are also another large factor in part causing supply deficiency. The number of global working hours was decreased by 8.8 percent due to the worldwide coronavirus pandemic. 

Supply chains are the root of the shortages; the longer they are, the more susceptible to interruptions. This is partly why many suppliers are trying to relocate closer to home, called reshoring. With a more relative location, electrical components will arrive more punctually.

J&P Electrical is a full-service electrical equipment company. At J&P, we supply contractors, end-users, and supply houses with new surplus, quality reconditioned, and obsolete electrical equipment. We also purchase a wide range of electrical equipment such as bus plugs, ducts, panel switches, substations, and transformers. Call us at 877-844-5514 or visit us at https://www.jpelectricalcompany.com.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

 

Electrician Pay is Increasing

 

The Bureau of Labor Statistics reported higher wages for electricians throughout 2020. The average salary was $61,550, with the median hourly pay being $29.59 per hour. The wages of electricians across the United States were analyzed, including apprentices who typically get paid less than experienced electricians. The national average was $60,370 in 2019 and $51,190 in 2018.

Areas with large populations and dense cities are generally where the most significant number of electricians reside. There are 78,970 electricians employed in New York City, Los Angeles, and Dallas combined.

The states that employ the highest number of electricians are:

-          California (71,010)

-          Texas (60,890)

-          Florida (41,900)

-          New York (36,310)

-          Ohio (23,430)

Higher demand for electricians results in a superior standard of pay for those in that area. Each state’s cost of living is also factored in, which results in higher averages in certain regions. Chicago, New York City, and Washington, D.C. have somewhat elevated costs of living.

The states that pay the highest wages for electricians are:

-          Illinois ($81,650)

-          New York ($81,340)

-          Hawaii ($79,030)

-          District of Columbia ($79,030)

-          Oregon ($76,040)

The industries that employ the most electricians are:

-          Building Equipment Contractors (477,560)

-          Employment Services (21,160)

-          Local Government (13,780)

The highest-paying industries for electricians are:

-          Natural Gas Distribution ($106,280)

-          Land Subdivision ($99,780)

-          Technical/Trade Schools ($93,260)

According to the Electricians: Occupational Outlook Handbook, the employment of electricians is expected to expand by 8 percent by 2029, which is twice as fast as the average for all occupations. The introduction of alternative energy such as wind, solar, and battery power provides emerging work for electricians.

J&P Electrical is a full-service electrical equipment company. At J&P, we supply contractors, end-users, and supply houses with new surplus, quality reconditioned, and obsolete electrical equipment. We also purchase a wide range of electrical equipment such as bus plugs, ducts, panel switches, substations, and transformers. Call us at 877-844-5514 or visit us at https://www.jpelectricalcompany.com.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.