Country Reports: Americas

Despite losing its position as the world’s largest market to China in 2015, 10 years after China had replaced the country as the largest producer; positive developments in the US will remain a factor driving growth in the global electronics industry. 2019 saw electronics output decline by an estimated 1.0% down on the prior year’s growth of 2.9%. In 2019, a 1.7% increase in the production of electronics equipment was offset by an 8.8% decline in component output, the downturn in the global semiconductor market the main contributing factor although both the passive and other components segments posted falls.

Although significant downside risks remain on how the pandemic will impact demand over the course of the second half of 2020 based on government data for the first half of the year electronics output in the US is forecast to show a modest increase of 0.6%, flat growth for the production of electronics equipment will be offset by a 2.6% increase in component output.

The US, like Europe is now focused on the production of low-volume products in the control and instrumentation, medical, automotive, industrial, defence, high-end computing and communications segments. Over the medium term these sectors are projected to achieve low to medium-digit growth.

The move by US companies to “reshore” production has gained some momentum and growth in the medium-term could also benefit as foreign companies look to establish a US manufacturing presence to offset the on-going trade war with China. As highlighted however, companies supplying higher volume products in the computer, consumer and communications markets will look to lower cost locations in Asia with favourable trade agreements with the US.

Growth in the Brazilian electronics industry will be closely linked with developments in the country’s economy along with continued investment by the world’s largest electronics groups in the 3C and electronic manufacturing services segments. With limited investment in domestic manufacturing the country will remain dependent on the import of electronic components over the period to 2022. Over recent year’s currency movements have had a major impact on the dollar growth rate. Expressed in US dollars, electronics output fell by 0.5% in 2019 following a decline of 3.5% in the prior year. In local currency production increased by 7.4% in 2019 and by 10.4% in 2018.

In addition to a large domestic market Mexico’s lower costs and close proximity to the US has made it a preferred location for low-cost manufacturing not only for companies from the US and Canada but also Asia and Europe. With the US the main export market the Mexican electronics industry is closely linked to developments in the country and in particular for high volume products including PCs, mobile phones and LCD TVs.

After increasing by 7.0% in 2017 electronics output accelerated to 10.8% in 2018 primarily as a result of robust growth in computing and medical electronics but eased to 2.7% in 2019. 

Computers and peripherals accounted for 54.4% of electronics output in 2019, the sector posting growth of 7.4% on the back of stronger exports to the US and key trading partners. A decline in exports to the key US market over the course of the first six months of 2020 combined with the broader impact of COVID-19 both domestically and internationally is forecast to lead to a 3.5% decline in output for the year as a whole.

The production of LCD TVs accounted for 18.5% of electronics output in 2019 production declining by 2.6% and compared a fall of 3.7% in the prior year. A further decline of 5.2% is forecast in 2020 as the pandemic lowers demand. The vast majority of production is destined for the US market.

On 30 November 2018, Canada, the US and Mexico signed the new Canada-United States-Mexico Agreement (CUSMA), the agreement being ratified on the 1st July 2020. CUSMA outcomes preserve key elements of this trading relationship and incorporate new and updated provisions that seek to address 21st-century trade issues and promote opportunities for the nearly half a billion people within North America. The successful implementation of CUSMA, will have a major influence on development of the North American electronics industry over the next few years.

Currently individual reports can be supplied electronically for the key countries within the Americas electronics industry although we can supply information on other countries covered within the Yearbook database on demand. To discuss specific requirements, including discounts for multiple purchases please contact andrew.fletcher@rer.co.uk

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Country Report - Brazil
Over recent year’s currency movements have had a major impact on the dollar growth rate. Expres..
£225.00
Ex Tax: £225.00
Country Report - Canada
Electronics production in Canada increased by an estimated 1.5% in 2019 and compared to growth of..
£225.00
Ex Tax: £225.00
Country Report - Mexico
In addition to a large domestic market Mexico’s lower costs and close proximity to the US has m..
£225.00
Ex Tax: £225.00
Country Report - USA
2019 saw electronics output decline by an estimated 1.0% down on the prior year’s growth of 2.9..
£225.00
Ex Tax: £225.00
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