View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Employment Outlook and
Changing Occupational Struture
in Electronics Manufacturing




Bulletin No. 1363

U N ITE D S TA TE S DEPARTM ENT OF LABO R
W . W i ll a rd W i rtz , Sec re ta ry
BUREAU OF LABOR STATISTICS
Ewan Clague, Commissioner

Docs

ERRATA SHEET
Employment Outlook and Changing Occupational Structure in Electronic
Manufacturing, bulletin No« 1353, U.S* Department of Labor,
Rureau of Labor Statistics

Page 1, column 1, line 7
delete 1950 and insert 1951
Pag* 7, column 2, last paragraph
Transpose to page 5, column 1, immediately before section beginning
"Employment Size of Electronics Establishments"
P~ge 4 7 , -footnote 90, last line
delete 3 and insert ?




Employment Outlook and
Changing Occupational Structure
in Electronics Manufacturing




Bulletin No. 1363
October 1963
UNITED STA TES DEPARTM ENT OF LABOR
W. Willard W irtz, Secretary
BUREA U O F LA BO R S TA TIS TIC S
Ewan Clague, Commissioner




PREFACE
Few industries have shown such dynamic growth and change in our generation as electronics
manufacturing. Originally consisting of only the manufacture of radios and, later, television sets,
the electronics industry has become indispensable to the country’s military and space programs
and the production of many industrial and commercial products, as well as in the home. Continued
rapid change in the nature of the industry is expected under the impact of an electronic technology
which is broadening in scope and growing in complexity.
With the realization that electronics manufacturing has become one of the Nation's basic and
vitally important industries has come an increased interest in information about the size, com­
position, and growth of the electronics manufacturing work force. Accurate manpower information
for the industry, however, is not readily available. Employment estimates are rough approxima­
tions since employment data collected on a national basis are so classified that employment in
electronics cannot be clearly separated from employment in other activities. Future manpower
requirements are difficult to project because of the rapidity of the industry's growth and change.
This study was made not only to help fill the gaps in manpower information for the industry but
also to show the approach used for doing this. It provides estimates of employment in electronics
manufacturing for the period 1958-61 and projections of manpower requirements by 1970, classi­
fied by major product category and with some detail as to occupation and sex. Hie study also
describes the methodology and sources used for developing these estimates and projections. It
is hoped that this information m&y be helpful for such purposes as: (1) Planning educational and
training programs adequate to meet anticipated manpower and skill needs of the industry; (2) pro*
viding vocational counseling and placement for young men and women seeking career opportuni­
ties; (3) developing employment estimates and projections for detailed segments of the industry,
specific localities of the country, or years other than those covered here; and (4) generally im­
proving employment and occupational statistics and techniques for projection in the electronics
manufacturing field.
Although some material was obtained through talks and interviews with industry, labor, and
Federal Government officials engaged in electronics work, most of the information for the study
came from secondary sources, such as periodicals, books, special reports and studies, and
newspaper articles. "Data available from the Electronic Industries Association, a major trade
association in this field, were especially helpful, as were those from Federal legislative com­
mittees and Federal agencies. In a few instances data used in the study were subsequently
slightly revised by the issuing organization, but too late for incorporation here. This was the
case with some of die statistics of the Electronic Industries Association.
This bulletin was prepared by Russell B. Flanders under the supervision of Joseph F. Fulton,
who also participated in the writing. The study was directed by Bernard Yabroff in the Bureau's
Division of Manpower and Occupational Outlook, under the general direction of Harold Goldstein,
Assistant Commissioner for Manpower and Employment Statistics.

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.G., 20402 - Price 40 cents







CONTENTS
Page

1

Summary of Findings
Chapter 1. Scope and Nature of Electronics Manufacturing *•.*****•*•*•**••*•••*.•.•*•«•*..••**•*••«•
Product classification by major category,
I.******.******...*.*********.....*
Product classification by SIC code ,•••••„<
Nature of electronics manufacturing
I***.**.***.**.**..**.*.*..*.*.*.......
Location of employment in electronics manufacturing
Employment size of electronics establishments

3
3
4
4
5

Chapter 2. Historical Growth of Electronics Manufacturing.,
Trends in major product categories, 1950-61,
Military and 5pace products *******•••••••*•***•••••••••••••••••••••••••.••••••••••••••••••••••••••••••••••
Industrial and commercial products............,..........................*..*..,.*....*.*,....*,***,*,*
Consumer products......
Electronic components

14
15
15
15
17
17

Chapter 3. Estimates and Projections of Electronics Manufacturing Employment.............
Employment and shipments estimates and projections
Military and space products
Industrial and commercial products
Consumer products
*•••••**•****•**••.•••*••*..*••
Components.,
Methodology for deriving employment estimates and projections ,

23
23
23
24
25
25
26

Chapter 4. Occupational Trends and Outlook in Electronics Manufacturing ..
Nonproduction and production workers
Mechanization in end-equipment manufacturing
Mechanization in components manufacturing ••••••••••••••••••••••••••••••*.••••.
Occupational distributions and trends
Women workers

31
31
32
33
33
35

Appendix A. Methodology ................................................................................................................
Derivation of employment estimates and projections, by major electronic product cate­
gory
......
Derivation of electronics shipments estimates and projections •••••••••••••••••••••••*••••..•••
Conversion of shipments from current to constant dollar estimates •••••••••••••••.•••*•••
Projections of constant dollar shipments
Derivation of projection for military and space electronics shipments ••*•••••••••••••*
Derivation of projection for industrial and commercial electronics shipments..,....
Derivation of projection for consumer electronics shipments •••••••••.••••••••••••••••••*
Derivation of projection for electronic components shipments **•••••*•*••«•****..•.•••••
Derivation of electronics shipments-per-employee estimates and projections
Distribution of employment estimates and projections between nonproduction and produc­
tion workers and between men and women workers, by major electronic product cate­
gory

40
40
40
41
42
42
44
44
45
45

Appendix B. Selected Bibliography

55




V

6

48

CONTENTS - -Continued

TEXT TABLES
Page

.

1 Employment in electronics manufacturing. by region and State, January 1958 and Jan2 Employment in military-space and industrial-commercial electronics manufacturing,
by region and State, January 1958 and January 1961...........................................
3. Employment in consumer electronics manufacturing, by region and State, January
4. Employment in electronic components manufacturing, by region and State, January
1958 and January 1961.................................................................................................. .
5. Employment size of establishments in electronics manufacturing, by SIC industry.
6 Value of electronics shipments, by major product category, 1950-62.............................
7. Department of Defense expenditures for military functions, fiscal years, 1954-63 .....
8 Value of industrial and commercial electronics shipments, 1956-61................................
9. Quantity and value of television and radio production, by type of unit, 1950-61...........
10. Quantity and value of phonograph sales, by type of unit, and value of sales of phono­
graph records, 1950-61.................................................................................
11 Value of electronic component shipments, by use as original equipment or replacement
parts, 1950-61.............................................................................................
12. Value of electronic component shipments, by type of component, 1950-61.................
13. Employment in electronics manufacturing, by product category, estimates for 1958-61
and projections for 1970
14. Value of electronics shipments in constant 1960 dollars, by product category, esti­
mates for 1958-61 and projections for 1970 ••••••••••••••••••••*••••••••••••••••••••••••••••••••
15. Nonproduction and production workers in electronics manufacturing, by product cate­
gory, estimates for 1958-61 and projections for 1970 ••••••••••••••••••••••••••••*••••••••••••
16. Illustrative occupational distributions in electronics manufacturing, military-space
and consumer products, mid-1962M9(MMMWC(«««MMwM«*«MMMMN*MMM*«*MM*M*MM«f*MM
17. Women workers as percent of all workers in electronics manufacturing occupations,
by major product category, mid-1962
18. Men and women workers in electronics manufacturing, byproduct category, estimates
for 1958-61 and projections for 1970.
APPENDIX TABLES
A -l. Value of electronics shipments, by major product category, estimates for 1950-62 in
constant 1960 dollars and current dollars, and projections for 1970 in constant 1960
A-2. Selected data used to develop 1970 projection for military and space electronics shipA-3. Selected data used to develop 1970 projections for industrial-commercial and con­
sumer electronics shipments ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••a
A-4, Electronics shipments and shipments per employee (in constant 1960 dollars), and
employment, by product category, estimates for 1958-61 and projections for 1970...
A-5. Distribution of employment between nonproduction and production workers, and women
workers, in selected electronics manufacturing industries, 1958-61 •••••••••••••••••••••
A-6. Nonproduction and production workers, and women workers, in electronics manufac­
turing, by product category, 3 projections for 1970
CHARTS
1. Employment in electronics manufacturing.
Estimates 1958-61, and projections, 1970.............
2. Employment increases in electronics manufacturing.
Estimates 1958-61, and projections, 1961-70........

.
.

.
.




vi

8

9
10

11
12

18
19
20

20

21
21
22

28
30
36
37
38
39

49
50
51
52
53
54

29
29

Employment Outlook and Changing Occupational Structure
in Electronics Manufacturing
SUMMARY OF FINDINGS
The electro n ics m anufacturing industryin the United States has grown w ith ex­
tre m e rap id ity in recen t y e a rs, and is
expected to show su b stan tial fu rth er grow th
during the re s t of the 1960's. Em ploym ent
in the in d u stry was estim ated at 778,000
w o rk ers in I9 6 0 --m o re than th ree tim es
what it was in 1950--and is expected to
reach n early 1.1 m illion by 1970. Shipm ents
of electro n ic products w ere estim ated at
$10.8 billion in 1961 and a re p ro jected to
n e a rly $20 billion by 1970 (constant I960
d o llars).
These estim ates and p ro jectio n s, devel­
oped by the B ureau of L abor S tatistics to
help provide m anpow er inform ation for
electro n ics m anufacturing (defined to in ­
c l u d e re se a rc h and developm ent (R&D) as
w ell as production), do not cover e le c ­
tro n ic s activity in the F e d e ra l G overnm ent,
u n iv e rsitie s, and nonprofit re se a rc h cen­
te rs , in which at le a st 55,000 w o rk ers a re
estim ated to have been engaged in late
I960 (chiefly in re se a rc h , developm ent, and
the negotiation and ad m in istratio n of con­
tra c ts ). The p rojections should be view ed
only as indications of g en eral m agnitudes
and directio n s of change. Some of the h is ­
to ric a l se rie s upon which they a re based
do not extend back m any y e a rs, and even if
they did would not n e c e ssa rily be too help­
ful since the p ast is an u n certain guide to
the future in the rapidly changing e le c ­
tro n ic s field. The pro jectio n s, m o reover,
a re heavily influenced by the m ajor a s ­
sum ptions used in deriving them .
The grow th ra te p ro jected for electro n ics
m anufacturing em ploym ent during the
1960's is expected to v ary among the m ajor
categ o ries into which electro n ic products
a re g en erally classified . In 1961, em ploy­
m ent was d istrib u ted among these c a te ­
g o ries in the following estim ated p ro p o r­
tions: 36 p ercen t in the m anufacture of
m ilita ry and space electronic equipm ent,
another 36 p ercen t in the m anufacture of



electro n ic com ponents, 16 p ercen t in indus­
tria l and co m m ercial electro n ic equipm ent,
and 11 p ercen t in consum er electro n ic
pro d u cts. By 1970, these pro p o rtio n s a re
expected to be about 42 p ercen t in m ilita ry
and space electro n ic equipm ent, 30 p ercen t
in electro n ic com ponents, 17 p ercen t in
in d u strial and co m m ercial electro n ic equip­
m ent, and 11 p ercen t in consum er e le c ­
tro n ic p roducts.
The m ilita ry and space electro n ic equip­
m ent category is expected to expand rapidly,
because of such m ajo r influences as the
grow ing electro n ic sophistication and com ­
plexity of sp acecraft, m issile s, a irc ra ft,
and other defense item s; the national effort
to com plete a m anned lu n ar expedition
before 1970; and the in creasin g size and
im portance of the m ilita ry space p ro g ram .
The relativ e sh are of electro n ics em ploy­
m ent devoted to com ponents m anufacturing
is expected to fall during the rem ain d er
of the 1960's. One reaso n is that shipm ents
p er w orker in com ponents m anufacture is
expected to ris e fa ste r than the in d u stry
av erag e. A nother is th at the growing use of
tra n s is to rs and o th er so lid -sta te com po­
nents is expected to in c re a se the reliab ility ,
length of life, and v e rsa tility of com ponents
and th erefo re d ecrease the ra te of com po­
nent rep lacem en t and the num ber of com ­
ponents needed to do a given job.
Em ploym ent in the m anufacture of indus­
tria l and co m m ercial electro n ic products
is expected to in c re a se during the rem ain d er
of the 1960's at a slightly fa ste r ra te than
em ploym ent in electro n ics m anufacturing
as a whole, as the dem and for these p ro d ­
ucts, esp ecially for com puters and data
processing equipm ent, continues to ris e .
In the consum er electro n ics field, em ploy­
m ent in 1970 is p ro jected at roughly the
sam e p r o p o r t i o n of to tal electro n ics
em ploym ent as in 1961. T elevision sets,
rad io s, and phonographs a re expected to con­
tinue as the p rin cip al consum er electro n ic
1

1950 and an estim ated tw o-fifths in 1961,
and a re expected to account fo r n e a rly half
by 1970. The grow ing im portance of R&D
w ork, and of low -volum e production of item s
m ade to o rd e r on a co n tract b a sis, in c re a se s
the need for en g in eers and other technical
p ersonnel and d e c re a se s the need for sem i­
skilled and unskilled production w o rk ers.
F o r exam ple, the num ber of en g in eers and
scien tists in electro n ics m anufacturing in ­
c re a se d n e a rly tenfold betw een 1951 and
1960--from an estim ated 13,000 to an
estim ated 128,000--co m p ared w ith a th re e ­
fold in c re a se in to tal electro n ics em ploy­
m ent over approxim ately the sam e period.
A nother facto r influencing expansion in the
relativ e size of the nonproduction w ork
force is the continual introduction of tech ­
nological changes, which tends to d ecrease
the num ber of production w o rk ers needed
to produce a given output. F inally, the
grow th of recordkeeping and com m unication
req u irem en ts in m odern b u sin ess has
caused an in c re a se in num bers of c le ric a l
and other office w o rk ers in electro n ics
m anufacturing, despite the introduction and
expanded use of im proved office equipm ent,
esp ecially for data p ro cessin g .
Women re p re se n t a larg e but declining
p ro p o rtio n of the to tal w ork fo rce in e le c ­
tro n ics m anufacturing. B ecause they a re
em ployed m ainly as production w o rk ers in
m ass-volum e o p eratio n s, such as the m anu­
factu re of consum er products and sem i­
conductors, tubes, and o th er com ponents,
th e ir p ro p o rtio n of the to tal electro n ics
m anufacturing w ork force has been de­
creasin g and is expected to continue to
d e c re a se, from an estim ated 50 p ercen t in
1950 to 41 p ercen t in 1961 and a p ro jected
39 p ercen t by 1970. In te rm s of num bers,
how ever, th e ir em ploym ent is expected to
grow , from an estim ated 320,000 in 1961
to about 423,000 by 1970.

item s during the decade of the 1960's,
although m any new consum er electro n ic
products w ill becom e available co m m er­
cially .
P roduction p ro c e sse s v a ry w idely among
the m ajor electro n ic product categ o ries,
and these d ifferen ces a re reflected in dif­
feren ces in occupational d istrib u tio n s. The
m anufacture of m ilita ry and space products,
and to a le s s e r extent of in d u strial and
co m m ercial pro d u cts, involves a g reat deal
of re s e a rc h and developm ent w ork and low volum e production of custom -m ade end
products and re q u ire s re la tiv e ly larg e p ro ­
p ortions of p ro fessio n al and other highly
tra in e d w o rk ers. In com parison, the m anu­
factu re of consum er products and com po­
nents tends to be an assem b ly -lin e, m assproduction operation involving relativ ely
la rg e p roportions of sem isk illed m anual
w o rk ers. Illu strativ e occupational d is tri­
butions co llected for this study indicate
th at in m id -1962 nonproduction w o rk e rs-en g in eers and o ther technical w o rk ers,
ad m in istrativ e and executive p erso nnel, and
c le ric a l and stenographic em p lo y ees--w ere
in the m ajo rity (60 p ercen t of the w ork
fo rce) in m ilita ry and space electro n ics
m anufacturing but in the m inority (30 p e r­
cent of the w ork force) in consum er e le c ­
tro n ic s m anufacturing. In m ilita ry and
space e le c tro n ic s, 33 p ercen t of the w ork
fo rce w ere engineers and other technical
w o rk ers and 27 p ercen t w ere sem isk illed
and unskilled w o rk ers, while in the con­
su m er products field, 11 percen t w ere
en g in eers and o th er technical w o rk ers and
63 p ercen t w ere sem isk illed and unskilled
w o rk ers.
N onproduction w o rk ers have been in ­
cre a sin g rapidly as a proportion of to tal
electro n ics em ploym ent. They re p resen ted
roughly one-fifth of such em ploym ent in




2

CHAPTER 1. SCOPE AND NATURE OF
ELECTRONICS MANUFACTURING
The electro n ics in d u stry is engaged in
"that branch of science and technology
w hich deals with the study and application
of techniques to d ire c t and control the con­
duction of e le c tric ity in a gas, vacuum , a
liquid, o r a so lid -state m a te ria l. E lectro n
tubes and sem iconductors are com bined
w ith re s is to rs , cap acito rs, tra n sfo rm e rs
and sim ila r com ponents in equipm ents
which detect, m easu re, reco rd , com pute
and com m unicate in fo rm atio n ."1 The d is­
tinguishing featu re of electronic products
as opposed to p u rely e le c tric a l ones is
that, although e le c tric ity flows through the
c irc u itry of both, electro n ic products also
include tubes and sem iconductors which
can discharge, d ire c t, control, o r o th e r­
w ise influence the flow of that e le c tricity .
The E lectronic In d u stries A ssociation, a
m ajo r trad e asso ciatio n in the electro n ics
m anufacturing field, e stim a te s that about
2,000 types of electro n ic products a re
m anufactured in th is co u n try .* They a re
*
ex trem ely v aried in end u se, function,
value, size, and fo rm . They range from
"m icro sco p ic com ponents le ss than a thou­
sandth of an inch in d iam eter to giant com ­
puting and control sy ste m s." 5

resen tativ e exam ples of th ese p roducts
include guidance and checkout sy stem s;
telem eterin g , ground track in g , and support
equipm ent; ra d a r, so n ar, in frared , and
other detection sy stem s and devices; gyro­
scopes and o th er navigational equipm ent;
fire control devices; and high-speed com ­
m unication equipm ent. R ep resen tativ e in ­
d u stria l and co m m ercial electro n ic products
include com puters; testing and m easuring
in stru m en ts; in d u stria l co n tro l and p ro c ­
essing equipm ent; electro n ic in stru m en ts
fo r n u clear w ork, such as re a c to r sensing
co n tro ls and rad iatio n detection devices;
telev isio n and radio broadcasting equip­
m ent; m icrow ave devices; m edical and
therapeutic equipm ent, such as X -ra y sy s­
tem s and d iath erm y units; and navigational
in stru m en ts for civ il and p riv ate a irc ra ft,
ships, etc.
C onsum er products include som e of the
m ost fa m ilia r kinds of electro n ic equipm ent
and also som e of the new est. E xam ples are
telev isio n and radio receiving sets; phono­
g raphs, high fidelity and stereophonic sound
equipm ent; tape re c o rd e rs ; hearing aids;
electro n ic ovens; and hom e in terco m m u n i­
cation sy stem s. Com ponents a re u su ally
classified in th ree broad groups: tubes,
sem iconductors, and "other com ponents."
Tubes include receiving, pow er, telev isio n
p ictu re, and v ario u s sp ecial-p u rp o se tubes.
P rin c ip a l sem iconductor devices a re tra n ­
sis to rs , diodes, and re c tifie rs . "O ther com ­
ponents" include such item s as c a p acito rs,
re s is to rs , tra n sfo rm e rs, re la y s, connec­
to rs , and sw itches. F o r som e p u rp o ses,
com ponents a re c lassified in another way,
as eith er (1) o rig in al equipm ent o r (2) r e ­
placem ent p a rts.

PRODUCTION CLASSIFICATION BY
MAJOR CATEGORY
One frequently used classificatio n divides
electro n ic products into four m ajor c a te ­
g o ries: (1) M ilitary and space products,
(2) in d u stria l and co m m ercial products,
(3) consum er p roducts, and (4) com ponents.
The firs t th ree categ o ries re p re se n t end
pro d u cts, while the fourth co n sists of the
p a rts and a c c e sso rie s which go into end
pro d u cts.
M ilitary and space electro n ic products
a re v ital p a rts of m issile s, sp acecraft, a ir ­
c ra ft, tanks, ships, and o ther item s used in
national defense and space p ro g ram s. R ep­

B ecause the c lassificatio n of electro n ic
end equipm ent as m ilita ry -sp a c e , indus­
tria l-c o m m e rc ia l, o r consum er products is
in te rm s of intended u se, the sam e type of
item m ay be c lassified in m ore than one
way if it can be m anufactured for m ore
than one kind of end u se. A radio re c e iv e r,
fo r instance, would be classified in the
m ilita ry and space categ o ry if produced for

1 Electronic Industries Association, Electronic Industries 1962
Yearbook. Washington, D.C., September 1962, p. 1.
* Ibid.
9 Ibid.



3

use in a m ilita ry a irc ra ft, in the in d u strial
and co m m ercial secto r if intended for use
in a civil a irc ra ft, and in the consum er
products group if sold for use in a p riv ate
hom e. Although com puters a re usually d is­
cu ssed in th is re p o rt in te rm s of the in ­
d u stria l-c o m m e rc ia l group, m any com ­
p u ters a re m anufactured for in stallatio n in
o r ground support of m ilita ry or space
c ra ft. N avigational devices m ay be m ade
fo r m ilita ry and space c ra ft, for co m m er­
cial ships and planes, o r even for consum er
use in p leasu re boating. Many other ex­
am ples could be cited of electronic item s
which can be m anufactured for m ore than
one kind of end u se.

activ ity .5 A ccording to the 1958 U.S. C ensus
of M anufactures--th e m ost recen t com plete
count of m anufacturing a c tiv ity --a s m any as
20 SIC 4 -digit in d u stries (listed in appendix
A) each rep o rted at le a st $25 m illion w orth
of electro n ics shipm ents in that year, and
a few additional 4 -digit in d u strie s each
rep o rted le s s than $25 m illion in ele c ­
tro n ics shipm ents. Developing accu rate
estim ates of electro n ics shipm ents and
em ploym ent on the b asis of the SIC code is
a com plicated p ro ced u re; one of the p u r­
poses of this re p o rt is to show an approach
for doing th is.

NATURE OF ELECTRONICS MANUFAC­
TURING

P roduct specifications and p erform ance
req u irem en ts v ary with intended end u se.
In gen eral, m ilita ry and space electro n ic
equipm ent and th e ir com ponents have the
m ost rig o ro u s req u irem en ts for reliab ility ,
ruggedness, quality control, accuracy, and
o th er c h a ra c te ris tic s . C onsum er products
and th e ir com ponents g en erally have the
le a st rig o ro u s stan d ard s, while p e rfo rm ­
ance to le ran ces for in d u strial and com ­
m e rc ia l equipm ent and th e ir com ponents
u su ally fall betw een these two lim its.

PRODUCT CLASSIFICATION BY SIC
CODE
In its com pilation of sta tistic s on ship­
m ents, em ploym ent, earnings, and other
econom ic v a ria b le s, the F e d e ra l G overn­
m ent u ses the Standard In d u strial C la ssi­
fication (SIC) system , a code which co v ers
all econom ic activity.4 The data collected by
the F e d e ra l G overnm ent re p re se n t probably
the m ain body of quantitative inform ation
about the electro n ics industry.
The code does not, how ever, read ily
identify all electro n ics m anufacturing,
w hich is sc a tte re d through at le a st two
dozen of the m ore than 400 SIC 4 -digit
in d u strie s used to cover m anufacturing
4 The SIC code is contained in the Standard Industrial Classifi­
cation Manual, 1957 edition, and the 1958 Supplement to that
edition, both prepared by the Executive Office of the President,
Bureau of the Budget. The SIC code was developed, according to
p. 1 of the Manual, "for purposes of facilitating the collection,
tabulation, presentation, and analysis of data relating to estab­
lishments; and for promoting uniformity and comparability in
the presentation of statistical data collected by various agencies
of the United States Government, State agencies, trade associa­
tions, and private research organizations."



4

M anufacturing p ro c e sse s in the e le c ­
tro n ics in d u stry a re n e c e ssa rily ex trem ely
v aried , in view of the wide range of e le c ­
tro n ic products and the g reat differences
in th e ir functions and p u rp o ses. The m ost
ex trem e d ifferen ces are found in a com ­
p ariso n betw een the fields of m ilita ry -sp a c e
and consum er e le c tro n ic s. In d u strial-co m ­
m e rc ia l electro n ics production g en erally
falls betw een these ex trem es, and com po­
nents m anufacturing tends to v ary according
to the type of end equipm ent for w hich the
com ponents a re m ade.
P erfo rm an ce req u irem en ts fo r m ilita ry
and space electro n ic item s a re ex trem ely
rig o ro u s. Hum an life m ay depend upon the
reliab ility , accu racy , and ruggedness of
these item s; in the case of unm anned
sp acecraft, a flight m ay be aborted or
ren d ered otherw ise u nsuccessful because
of the m alfunction of an electro n ic system
o r p a rt. R equirem ents for m ilita ry and
space item s a re not only sev ere but also
constantly changing to m eet the needs of an
expanding space pro g ram and changing
national defense p a tte rn s. The ra te of ob­
solescence is high. E ver sm a lle r devices
and ev er low er pow er req u irem en ts are
sought, to overcom e lim itatio n s o. b o o ster
pow er, fuel, and other energy so u rces.
C onsum er pro d u cts, on the o th er hand, a re
g en erally m uch m ore standardized and p e r­
form ance req u irem en ts stan d ard s a re not
n early so rig o ro u s.
5 The more than 400 manufacturing industries consist of SIC
industries 1911 to 3999. It should be noted that this study ex­
cludes electronics activity outside these manufacturing indus­
tries, such as that in the Armed Forces, the Federal Government
(SIC 91), nonprofit research centers and universities (SIC 8291),
engineering service establishments (SIC 8911), and commercial
research laboratories (SIC 7391).

R esearch and developm ent w ork is a
m uch la rg e r p a rt of the m anufacture of
m ilita ry -sp a c e electro n ics than in con­
su m er e le c tro n ic s,6 M ilitary and space
item s are com m only hand m ade in re la ­
tiv ely sm all num bers on a co n tract b a sis,
w hile consum er item s a re g en erally m ass
produced, using autom ated and m echanized
p ro c e sse s, for m ass distrib u tio n . The p ro ­
p o rtio n of en g in eers, sc ie n tists, technicians,
and skilled craftsm en in the w ork force is
re la tiv e ly high in m ilita ry -sp a c e electro n ics
production and relativ ely low in the con­
su m er products field. C orrespondingly, the
p ro p o rtio n of sem iskilled and unskilled
assem b ly -lin e production w o rk ers is com ­
p arativ ely low in m ilita ry - space electro n ics
and high in consum er e lectro n ics. The p ro ­
po rtio n of women w o rk ers, who tend to be
concentrated in the sem isk illed and unskilled
production jobs, is g en erally low er in
m ilita ry - space electro n ics than in consum er
ele c tro n ic s.
A ll electro n ics estab lish m en ts, re g a rd ­
le s s of product category, em ploy ad m in is­
tra tiv e , executive, c le ric a l, and steno­
graphic w o r k e r s , and m any em ploy
en g in eers, sc ie n tists, and technicians for
v ario u s functions, m ainly R&D w ork. The
relativ e n u m erical im portance of R&D
w o rk ers v a rie s considerably with the type
of product m ade. P roduction w o rk ers in the
typical electro n ics plant include a sse m b le rs
who use sm all hand tools, soldering iro n s,
light welding devices, d iag ram s, and m odels
to put together p a rts, c irc u its, and subassem b lies; te s te rs and in sp ecto rs who
check, visually o r with in stru m en ts, the
products being m anufactured through ev ery
stage of th e ir production; and p ro cessin g ,
fab ricatin g , and m achining w o rk ers, such
as sp ray and dip p a in te rs, oven ten d ers,
co il w inders, e le c tro p la te rs, an odizers,
silk screen o p e ra to rs, and m achine tool
o p e ra to rs. Skilled m aintenance craftsm en
a re responsible for the c a re of plant and
equipm ent.

plants in m ilita ry -sp a c e and in d u stria lco m m ercial e le c tro n ic s--fre q u e n tly locate
in m etropolitan a re a s . C ities are m ore
likely to a ttra c t the train ed p erso n n el needed
in R&D w ork, esp ecially if the c itie s p o ssess
u n iv ersity fa c ilitie s for the continued edu­
cation of profe s sional and tech n ical w orker s .
On the other hand, electro n ics e sta b lish ­
m ents which a re p rim a rily engaged in
larg e-v o lu m e production o p e ra tio n s--su c h
as plants m anufacturing re la tiv e ly stand­
ard ized c o m p o n e n t s and consum er
p ro d u cts--freq u en tly locate in sm all towns
o r ru ra l a re a s, w here sem isk illed and un­
skilled w o rk ers a re g en erally available in
larg e nu m b ers. Shipping co sts a re not an
esp ecially m ajor co n sid eratio n since p ro d ­
ucts tend to be sm all and light in weight
relativ e to th e ir value.
Some inform ation on location of e le c ­
tro n ics em ploym ent is available by State
from unpublished data co llected by the
B ureau of Em ploym ent S ecurity (B ES),U .S.
D epartm ent of L abor (tables 1 to 4). These
unpublished State data cover electro n ics
m anufacturing em ploym ent in only the seven
SIC 4 -digit in d u stries engaged p rim a rily
in such m anufacturing. In both 1961 and
1958, these seven in d u strie s accounted for
about th re e -fo u rth s of the estim ated em ­
ploym ent in the m anufacture of electro n ics
p ro d u cts.7
M ore than 3 of ev ery 10 w o rk ers in ele c ­
tro n ics m anufacturing w ere located in the
M iddle A tlantic States in Jan u ary 1961
(table 1). M ore than 2 of ev ery 10 w ere
located in the P acific S tates, and n early
the sam e pro p o rtio n w ere em ployed in the
E ast N orth C en tral S tates. New England
had the fourth la rg e st group of electro n ics
w o rk ers, with 12 p ercen t of the in d u stry
to tal. These four m ajor regions together
accounted fo r m ore than fo u r-fifth s of the
en tire electro n ics w ork force in 1961; the
th ree contiguous reg io n s--M id d le A tlantic,
E ast N orth C en tral, and New E ngland-accounted for m ore than th re e -fifth s.
C alifornia had the la rg e st concentration
of electro n ics w o rk ers in both 1961 and

LOCATION OF EMPLOYMENT IN
ELECTRONICS MANUFACTURING
E lectro n ics estab lish m en ts which a re
heavily engaged in R&D w ork and em ploy
la rg e num bers of en g in eers, technicians,
and highly skilled c ra ftsm e n --su c h as m any

7 Total electronics employment was 777,700 in 1961 and 609,800
in 1958, according to the estimates developed for this report.
(See table 13.) The unpublished BES employment data are only
approximately comparable with the estimates in table 13, since
the latter figures relate to electronics employment only, while
the BES figures cover all employment—nonelectronic as well
as electronic--in industries primarily electronic.

6 Manufacturing, as used throughout this report, includes
research and development work as well as production.




5

1958 (table 1). O ther States with heavy
em ploym ent concentrations, listed in de­
creasin g o rd e r as of 1961, w ere New York,
Illinois, New Je rse y , P ennsylvania, M assa­
ch u setts, and Indiana. These w ere the only
S tates with as m uch as 5 p ercen t of to tal
electro n ics em ploym ent in eith er 1961 o r
1958. Of these leading S tates, C alifornia
had a larg e in c re a se in its sh are of to tal
electro n ics em ploym ent betw een 1958 and
1961, while the o th e rs, except P ennsylvania,
had d e c re a se s.
All industry segments
Middle Atlantic (31)
Pacific
(21)
East North Central (20)
New England
(12)

The reg io n al d istrib u tio n of electro n ics
w o rk ers v a rie s co n sid erab ly by m ajor in­
d u stry segm ent. This fact is illu stra te d by
the following tabulation based on data from
tables 1-4, w hich a rra y s , by m ajor in d u stry
segm ent, the four regions with the highest
concentrations of electro n ics em ploym ent.
The a rra y for each in d u stry segm ent is in
descending o rd e r, according to the p ercen t
(shown in p aren th eses) of em ploym ent in
the in d u stry segm ent in Jan u ary 1961 ac­
counted fo r by each region.

Military and indus­
trial electronics
Pacific
(31)
Middle Atlantic (27)
East North Central (12)
New England
(l 8)

Consumer electronics
East North Central (49)
Middle Atlantic (31)
Pacific
(11)
New England
(3)

Electronic components
Middle Atlantic (36)
New England
(21)
East North Central (18)
Pacific
(13)

i One other region, the South Atlantic, ranked ahead of New England, with 10 percent of employment in
the industry segment.

The P acific region, for exam ple, ranked
firs t in num ber of m ilita ry and in d u strial
e le c tro n ic s w o rk ers but only th ird and
fourth in the two o th er in d u stry segm ents
shown. The E ast N orth C en tral S tates, on
the o th er hand, ranked only th ird in two
in d u stry segm ents but accounted for roughly
half (49 percent) of a ll em ploym ent in the
co n su m er products field; this was the
highest pro p o rtio n accounted fo r by any
reg io n in any in d u stry segm ent. The New
England States ranked low est in two indus­
try segm ents but second in cbm ponents
m anufacturing em ploym ent.

size of electro n ics e sta b lish m e n ts.8 As in
tab les 1-4, the data do not re la te to all
electro n ics m anufacturing em ploym ent, but
only to that in the seven SIC 4 -digit indus­
trie s p rim a rily engaged in such m anufac­
tu rin g .9
The m ajor conclusion to be draw n from
the data is that the m ajo rity of the e le c ­
tro n ic s plants em ploy sm all num bers of
w o rk ers and account for little o v erall in ­
d u stry em ploym ent, while a re la tiv e ly few
larg e plants account for sizable pro p o rtio n s
of in d u stry em ploym ent. N early tw o -th ird s
(65 percent) of the 2,527 plants had few er
than 50 em ployees each in 1958, and em ­
ployed only 5 p ercen t of the to tal w o rk fo rce.
On the other end of the scale, e sta b lish ­
m ents with 250 o r m ore em ployees re p re ­
sented only 13 p ercen t of the 2,527 e stab ­
lish m en ts but accounted for 79 p ercen t of

B etw een 1958 and 1961, each of the four
m ajo r regions had in c re a se s in the num ber
of electro n ics w o rk ers, but the in c re a se s
w ere unequal in ra te (table 1). As a re su lt,
reg io n al em ploym ent as a pro p o rtio n of
national em ploym ent declined in the Middle
A tlantic and E ast N orth C en tral S tates,
rem ain ed the sam e in New England, and
ro se m arkedly in the P acific reg io n --fro m
15 p ercen t to 21 p ercen t. C alifornia a c ­
counted for v irtu ally all electro n ics em ­
ploym ent in the P acific region in both 1961
and 1958.

8In addition to the 2,527 establishments covered in table 5,
many other plants making electronic products are classified in
SIC industries not primarily engaged in electronics manufac­
turing—that is, in industries in which electronics shipments
represent less than half of the value of total shipments. (See
appendix A for a list of most of these industries.) The Electronic
Industries Association estimates that more than 5,500 estab­
lishments were making some electronic products in the United
States in late 1961 (Electronic Industries 1962 Yearbook, p. 1).
9 The Census Bureau's figure of 401,400 in table 5 differs from
the Labor Department's figure of 458,400 in table 1, even though
both represent the sum of employment in the same seven SIC
industries, because (1) collection methods and criteria differ
between the two series, and (2) the figures in table 5 are aver­
ages for 1958 while those in table 1 are as of January 1958.

EMPLOYMENT SIZE OF ELECTRONICS
ESTABLISHMENTS
Table 5 p re se n ts data from the 1958
C ensus of M anufactures on the em ploym ent




6

to tal em ploym ent; estab lish m en ts with 2,500
o r m ore em ployees equaled only 1 p ercen t
of all estab lish m en ts but accounted for at
le a st 22 percen t of to tal em ploym ent.10
On an individual in d u stry b a sis, half o r
m ore of the estab lish m en ts in 6 of the 7
in d u strie s had few er than 50 em ployees
each, but the p roportion of in d u stry em ploy­
m ent accounted for by these sm a lle r plants
w as in no case g re a te r than 13 p ercen t, and
in one case as low as 1.5 p ercen t. On the
o th er hand, the p ro p o rtio n of estab lish m en ts
w ith 250 or m ore em ployees w as in no case
higher than 38 p ercen t and in one case as
low as 7 p ercen t, but these la rg e r e sta b ­
lish m en ts accounted for sh ares of in d u stry
em ploym ent ranging from 60 to 97 p ercen t.
While fig u res for the la rg e st em ploym entsize c la sse s a re not given fo r ev ery in ­
d u stry in table 5, those given g en erally
show em ploym ent concentrations in a few
v e ry larg e p lan ts. In the consum er field of
rad io and TV receiving se ts, for exam ple,
20 estab lish m en ts (9 p ercen t of the total)
had 57 p ercen t of total in d u stry em ploy-

m ent; in the m ilita ry and in d u stria l field of
radio and TV com m unication equipm ent,
31 estab lish m en ts (6 p ercen t of the total)
accounted for 66 p ercen t of in d u stry em ­
ploym ent; and in the m anufacture of tra n s ­
m itting electro n tubes, 6 estab lish m en ts
(12 p ercen t of the total) had 55 p ercen t of
in d u stry em ploym ent.
R ates of em ploym ent change betw een
1958 and 1961 in the four m ajo r regions
w ere unequal also in te rm s of m ajo r in ­
d u stry segm ents, as indicated in the follow ­
ing tabulation based on data fro m tab les 1
to 4, covering the four regions w ith the
la rg e st concentrations of electro n ics em ­
ploym ent. The tabulation show s, for each
m ajor region and in d u stry segm ent, the
change which o c c u rre d betw een 1958 and
1961 in the pro p o rtio n which w o rk ers in the
region re p re se n te d of to tal national em ­
ploym ent in the in d u stry segm ent. C hanges
a re shown in te rm s of the num ber of p e r­
cent points gained o r lo st in th ese p ro ­
p o rtio n s.
All
Military and
industry industrial Consumer Electronic
Major region segments electronics electronics components
Middle
+0.5
Atlantic
1-7.6
-2.3
46.0
-.8
Pacific
+3.0
46.8
East North
Central
-3.8
+2.4
+7.4
-5.1
New England
0
-2.9
+ .6
+1.0
lThis relatively sharp drop was due to a marked employment
decline in New Jersey.
1




CO

io Exact employment in plants with 2,500 or more employees
is not ascertainable from table 5 because of data withheld for SIC
industries 3671 and 3673, to avoid disclosing figures for indi­
vidual companies. Maximum and minimum employment for this
category of establishments, however, may be determined in
these two SIC industries. With the help of these maximums and
minimums, it may be concluded that, for the 7 industries of
table 5 combined, employment in plants with 2,500 or more
employees equaled between 22 and 26 percent of total employ­
ment.

7

Table 1.

Employment in electronics manufacturing,1 by region and State
January 1958 and January 1961

January 1958
Region1 and State3
2

All employees....... •••••
Middle Atlantic................
New York.................
New Jersey..................
Pennsylvania.................
Pacific.......................
California...................
Other....... ................
East North Central..............
Illinois....................
Indiana..... ................
Wisconsin....................
Ohio........................
Michigan....................
New England...................
Massachusetts................
Connecticut.................
New Hampshire................
Other.......................
South Atlantic................
North Carolina...............
Maryland....................
Florida.....................
Other.......................
West North Central.............
Iowa........................
Minnesota...................
Other.......... .............
West South Central.............
Texas.......................
Other.......................
East South Central.............
Kentucky.................. . •
Other.......................
Mountain..... .................
Arizona.....................
Other........ •••••........ .

January 1961

Number

Percent

458,405

100.0

616,860

100.0

158,328
61,527
56,013
40,788
69,849
68,914
935
107,544
58,008
28,888
3,432
12,000
5,216
55,312
43,883
6,110
4,133
1,186
28,402
13,744
8,355
3,972
2,331
12,226
7,507
2,156
2,563
7,793
6,764
1,029
11,035
4,936
6,099
7,916
7,219
697

34.5
13.4
12.2
8.9
15.2
15.0
.2
23.5
12.7
6.3
.7
2.6
1.1
12.1
9.6
1.3
.9
.3
6.2
3.0
1.8
.9
.5
2.7
1.6
.5
.6
1.7
1.5
.2
2.4
1.1
1.3
1.7
1.6
.2

192,193
75,625
58,797
57,771
130,552
129,090
1,462
121,703
60,757
31,233
13,772
11,052
4,889
74,591
50,986
10,148
6,782
6,675
40,636
16,151
9,843
9,789
4,853
22,553
11,125
6,098
5,330
16,880
15,821
1,059
11,937
4,403
7,534
5,815
4,720
1,095

31.2
12.3
9.5
9.4
21.2
20.9
.2
19.7
9.8
5.1
2.2
1.8
.8
12.1
8.3
1.6
1.1
1.1
6.6
2.6
1.6
1.6
.8
3.7
1.8
1.0
.9
2.7
2.6
.2
1.9
.7
1.2
.9
.8
.2

Number

Percent

1 Data in this table cover the seven 4-digit industries, 1957 SIC code, each with at
least $25 million in electronics shipments in 1958, and with electronics shipments repre­
senting half or more of the value of total shipments. These industries are SIC 3651 (Radio
and television receiving sets, except communication types), 3652 (Phonograph records),
3662 (Radio and television transmitting, signaling, and detection equipment and appara­
tus), 3671 (Radio and television receiving type electron tubes, except cathode ray), 3672
(Cathode ray picture tubes), 3673 (Transmitting, industrial, and special purpose electron
tubes), and 3679 (Electronic components and accessories, not elsewhere classified).
2 States in each region are as follows: Middle Atlantic— New Jersey, New York, Pennsyl­
vania; Pacific— Alaska, California, Hawaii, Oregon, Washington; East North Central— Illinois, Indiana, Michigan, Ohio, Wisconsin; New England— Connecticut, Maine, Massachusetts,
New Hampshire, Rhode Island, Vermont; South Atlantic— Delaware, District of Columbia,
Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia; West
North Central— Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota;
West South Central— Arkansas, Louisiana, Oklahoma, Texas; East South Central— Alabama,
Kentucky, Mississippi, Tennessee; and Mountain— Arizona, Colorado, Idaho, Montana, Nevada,
New Mexico, Utah, Wyoming.
3 States individually listed are those which had, in either January 1958 or January 1961,
at least 1.0 percent of total employment in the seven 4-digit industries covered by the
table.
Note: Because of rounding, sums of individual items may not equal totals.
Source: Unpublished data collected by the U.S. Department of Labor, Bureau of Employment
Security.




8

Table 2.
Employment in military-space and industrial-commercial electronics
manufacturing,1 b y region and State, January 1958 and January 1961

January 1958

January 1961

Region and State1
2
Number
All employees.............
Pacific.................... . • • •.
California....................
Other.................. .......
Middle Atlantic.................
New York......................
New Jersey....................
Pennsylvania.... .............
East North Central..............
Illinois......................
Wisconsin.....................
Ohio...........................
Indiana................... . •• •
Other.........................
South Atlantic..................
North Carolina................
Maryland......................
Florida.......................
Other...... . •. • ............. .
New England....... .............
Massachusetts.................
Connecticut...................
Other....................... . •
West North Central..............
Iowa............... ...... .....
Minnesota.....................
Other.........................
West South Central..............
Texas.........................
Other.........................
East South Central..... ........
Tennessee.............. .......
Other..... ........ ...........
Mountain........................
Arizona.......................
Other.........................

Percent

Number

Percent

153,590

100.0

293,197

100.0

<48,211
47,493
718
41,284
24,430
12,226
4,628
14,193
10,455
802
1,979
158
799
20,561
11,450
7,924
1,033
154
17,508
14,096
2,148
1,264
2,566
467
1,128
971
4,105
4,064
41
167
85
82
4,995
4,877
118

31.4
30.9
.5
26.9
15.9
8.0
3.0
9.2
6.8
.5
1.3
.1
.5
13.4
7.5
5.2
.7
.1
11.4
9.2
1.4
.8
1.7

89,856
88,858
998
80,349
36,472
28,286
15,591
34,153
13,588
10,730
4,763
4,205
867
30,713
13,552
9,166
6,617
1,378
24,998
16,428
3,395
5,175
15,181
9,376
4,541
1,264
14,367
14,130
237
3,166
3,093
73
414
70
344

30.6
30.3
.3
27.4
12.4
9.6
5.3
11.6
4.6
3.7
1.6
1.4
.3
10.5
4.6
3.1
2.3
.5
8.5
5.6
1.2
1.8
5.2
3.2
1.5
.4
4.9
4.8
.1
1.1
1.1
(3 )
.i
(3 )
.i

.3

.7
.6
2.7
2.6
(3 )
.1
.1
.1

3.3

3.2
.1

1 Data in this table cover t h e 4-digit military-space and industrial-commercial elec­
tronics industry, 1957 SIC code, with at least $25 million in electronics shipments in
1958, and with electronics shipments representing half or more of the value of total ship­
ments. This industry is SIC 3662: Radio and television transmitting, signaling, and detec­
tion equipment and apparatus. This industry is identified in the 1957 SIC code, as
a m e n d e d by the 1958 supplement, as follows: "Establishments primarily engaged in manufac­
turing (1) radio and television broadcasting equipment; (2) electric communication equip­
ment and parts, except telephone and telegraph; (3) electronic field detection apparatus,
light and heat emission operating apparatus, object detection apparatus and navigational
electronic equipment, infrared object detection equipment, and aircraft and missile con­
trol systems; and (4) other electric and electronic communication and signaling products,
not elsewhere classified.”
2 States individually listed are those which had, in either January 1958 or January 1961,
at least 1.0 percent of total employment in SIC 3662.
3 Less than .05 percent.
Note: Because of rounding, sums of individual items may not equal totals.
Source: Unpublished data collected by the U.S. Department of Labor, Bureau of Employment
Security.




9

Table 3.

Employment in consumer electronics manufacturing,1 by region and State,
January 1958 and January 1961
January 1961

January 1958
Region and State2
Percent

Number

Number

Percent

All employees.............

127,185

100.0

97,186

100.0

East North Central.............
Illinois.....................
Indiana......................
Michigan.....................
Ohio.........................
Other....... .................
Middle Atlantic ••••.......••••••
New York.....................
Pennsylvania............. .
New Jersey...................
Pacific........................
New England....................
East South Central.... .
Tennessee....................
Other............... .........
West North Central.............
West South Central.............
Other regions (South Atlantic
and Mountain)................

52,950
27,963
16,490
3,002
5,278
217
48,693
17,132
9,345
22,216
10,089
2,963
2,327
1,987
340
7,211
2,292

41.6
22.0
13.0
2.4
4.1
.2
38.3
13.5
7.4
17.5
7.9
2.3
1.8
1.6
.3
5.7
1.8

47,662
26,814
16,410
2,293
1,913
232
29,854
15,585
7,925
6,344
10,561
2,843
2,317
1,693
624
2,167
809

49.0
27.6
16.9
2.4
2.0
.2
30.7
16.0
8.2
6.5
10.9
2.9
2.4
1.7
.6
2.2
.8

660

.5

973

1.0

1 Data in this table cover the two -4-digit consumer electronics industries, 1957 SIC
code, each with at least $25 million in electronics shipments in 1958, and with elec­
tronics shipments representing half or more of the value of total shipments. These in­
dustries are SIC 3651 (Radio and television receiving sets, except communication types)
and 3652 (Phonograph records).
2 States individually listed are those which had, in either January 1958 or January
1961, at least 1.0 percent of total employment in the two 4-digit industries covered by
the table, except that individual listing of some States was withheld to avoid disclosure
of confidential data.
Note: Because of rounding, sums of individual items may not equal totals.
Source: Unpublished data collected by the U.S. Department of Labor, Bureau of Employ­
ment Security.




10

Table 4.

Employment in electronic components manufacturing,1 by region and State,
January 1958 and January 1961
January 1958

January 1961

Region and State1
2
Number

All employees............
Middle Atlantic................
Pennsylvania.................
New Jersey...................
New York............. ........
New England....................
Massachusetts................
Connecticut..................
New Hampshire................
Other........................
East North Central.............
Illinois.....................
Indiana......................
Ohio.........................
Wisconsin.......... ........
Other........................
Pacific............. ...........
South Atlantic................ .
Florida.......... ............
North Carolina...............
Other........................
East South Central.............
Mountain............ ...........
Arizona......................
Other.........................
West North Central.............
West South Central.............

Percent

Number

Percent

177,630

100.0

226,477

100.0

38.5
15.1
12.1
11.2
19.6
16.0
1.4
1.7
.5
22.7
11.0
6.9
2.7
1.4
.8
6.5
4.1
1.7
1.3
1.1
4.8
1.6
1.3
.3
1.4
.8

68,351
26,815
21,571
19,965
34,841
28,483
2,434
3,045
879
40,401
19,590
12,240
4,743
2,413
1,415
11,549
7,191
2,939
2,250
2,002
8,541
2,911
2,332
579
2,449
1,396

81,990
34,255
24,167
23,568
46,750
33,338
5,322
4,386
3,704
39,888
20,355
10,618
4,376
2,810
1,729
30,135
8,953
2,921
2,393
3,639
6,454
5,398
4,647
751
5,205
1,704

36.2
15.1
10.7
10.4
20.6
14.7
2.3
1.9
1.6
17.6
9.0
4.7
1.9
1.2
.8
13.3
4.0
1.3
1.1
1.6
2.8
2.4
2.1
.3
2.3
.8

1 Data in this table cover the four 4-digit components industries, 1957 SIC code, each
with at least $25. million in electronics shipments in 1958, and with electronics shipments
representing half or more of the value of total shipments. These industries are SIC 3671
(Radio and television receiving type electron tubes, except cathode ray), 3672 (Cathode
ray picture tubes), 3673 (Transmitting, industrial, and special purpose electron tubes),
and 3679 (Electronic components and accessories, not elsewhere classified).
2 States individually listed are those which had, in either January 1958 or January
1961, at least 1.0 percent of total employment in the four 4-digit industries covered by
the table, except that individual listing of some States was withheld to avoid disclosure
of confidential data.
Note: Because of rounding, sums of individual items may not equal totals.
Source: Unpublished data collected by the U.S. Department of Labor, Bureau of Employ­
ment Security.




11

Table 5.

Employment size of establishments in electronics manufacturing, by SIC industry, 19581
Establishments with an average of—

SIC
number

SIC industry

Totals:
Establishments:
Number............. ...............
Percent of total..................
Employees:
Number.............................
Percent of total..................
3651

3652

3662

3671

Radio and TV receiving sets:
Establishments:
Number.............................
Percent of total................. .
Employees:
Number.............................
Percent of total..................
Phonograph records:
Establishments:
Number.............................
Percent of total..................
Employees:
Number.............................
Percent of total..................
Radio and TV communication equipment:
Establishments:
Number.............................
Percent of total..................
Employees:
Number.............................
Percent of total..................
Electron tubes, receiving type:
Establishments:
Number.............................
Percent of total..................
Employees:
Number..................... .......
Percent of total............ ......

See footnotes a t end of table



All
establish­
ments

1-49
employees

50-249
employees

250-999 1,000-2,499
employees employees

234
9.3

75
3.0
*

2,500
employees
or more

2,527
100.0

1,635
64.7

560
22.2

401,351
100.0

21,110
5.3

62,579
15.6

234
100.0

117
50.0

59
25.2

38
16.2

17
7.3

3
1.3

66,505
100.0

1,529
2.3

7,199
10.8

19,662
29.6

25,709
38.7

12,406
18.7

94
100.0

67
71.3

20
21.3

5
5.3

2
2.1

7,421
100.0

991
13.4

1,937
26.1

4,493
60.5

512
100.0

327
63.9

100
19.5

54
10.6

18
3.5

13
2.5

129,515
100.0

3,904
3.0

12,307
9.5

27,252
21.0

30,652
23.7

55,400
42.8

85
100.0

54
63.5

4 6
7.1

9
10.6

14
16.5

2
2.4

36,968
100.0

567
1.5

421
1.1

35,980
97..3

(2)
(2)

0
(2)

(3)

(3 )

23
0.9
(*)
(2)

0
0
0
0

(3 )

Table 5.

SIC
number

3672

3673

3679

Employment size of establishments in electronics manufacturing, by SIC industry, 19581— Continued

SIC industry

Cathode ray picture tubes:
Establishments:
Number...........................
Percent of total....... ..........
Employees:
Number......... ..................
Percent of total.................
Electron tubes, transmitting:
Establishments:
Number ••••••••••••••.............
Percent of total.................
Employees:
Number...........................
Percent of total.................
Electronic components, n.e.c.
Establishments:
Number...........................
Percent of total.................
Employees:
Number...........................
Percent of total.................

All
establish­
ments

Establishments with an average of—
1-49
employees

50-249
employees

250-999
employees

1,000-2,499
employees

2,500
employees
or more

75
100.0

56
74.7

11
14.7

5
6.7

8,554
100.0

706
8.3

897
10.5

6,951
81.3

48
100.0

16
33.3

14
29.2

12
25.0

4
8.3

20,146
100.0

466
2.3

1,600
7.9

6,931
34.4

11,149
55.3

1,479
100.0

998
67.5

350
23.7

111
7.5

17
1.1

3
.2

132,242
100.0

12,947
9.8

38,218
28.9

48,381
36.6

23,872
18.0

8,824
6.7

3
4.0
(3 )

0
0
0
0

2
4.2
(3 )

1 Data in this table cover the seven 4— digit industries, 1957 SIC code, each with at least $25 million in electronics
shipments in 1958, and with electronics shipments representing half or more of the value of total shipments,
2 Not available.
3 Data which cannot be shown separately have been combined with figures in the next lower size class or classes. Com­
bined figures are underlined.
4 All establishments in this group reported an average of 50-99 employees.
Note: Because of rounding, sums of individual items may not equal totals.
Source: U.S. Bureau of the Census, U.S. Census of Manufactures: 1958, MC 58(2)-36D, table 4.




CHAPTER 2. HISTORICAL GROWTH OF
ELECTRONICS MANUFACTURING
w ar brought about m any technological ad­
vances in electro n ics application. E le c ­
tronic testing and m easuring devices w ere
developed, and im provem ents w ere m ade
in radio navigation and a ir flight control
equipm ent. The digital com puter w as de­
veloped, to m eet the need for high-speed
data p ro cessin g in advanced scientific w ork
and for autom atic fire and flight co n tro ls.

Although the electro n ics in d u stry as we
know it today is relativ ely new, w ork was
being done in electro n ics before the sta rt
of this century. In 1894, O liver Lodge
developed a system of w ire le ss com m u­
nication in England. D uring the next few
y e a rs, considerable p ro g re ss w as m ade in
w ire le ss telegraphy by G uglielm o M arconi,
E rn e st R utherford, F . K. V reeland, R. A.
F essen d en , and Lee De F o re st, among
o th e rs. The invention of the th ree-elem en t
vacuum tube by De F o re st in 1906 m ade
possible both the developm ent of the radio
broadcasting in d u stry and the p ra c tic a l
application of telev isio n . Betw een 1910 and
1920 rapid p ro g re ss was m ade in the theory,
application, and co n stru ctio n of vacuum
tubes and th e ir c irc u its, and E. H. A rm ­
strong began his w ork in frequency m odu­
latio n (FM ).
D uring W orld W ar I, g ro u n d -to -a irc raft
radio com m unication was introduced. A fter
that w ar, radio broadcasting stations began
op eratio n s in all p a rts of the country. By
1939, electro n ics production had grow n in
value to $340 m illion, the num ber of radios
produced equaled 10.8 m illion,11 and em ­
ploym ent in w hat was then known as the
rad io s, radio tubes, and phonographs in ­
d u stry had rise n to 56,000.12
C rude telev isio n p ictu res in color w ere
d em o n strated as e a rly as 1930. B lack and
w hite telev isio n b ro ad casts began in 1936.
D uring W orld W ar II, re s e a rc h in te le v i­
sion tran sm ittin g and receiving continued
because of potential m ilita ry applications,
and resu ltin g im provem ents led to w ide­
sp read consum er acceptance of television.
M ilitary equipm ent* including new p ro d ­
u cts such as ra d a r, sonar, and the proxim ity
fuse, dom inated electro n ics production d u r­
ing W orld W ar II. R esearch during that

The c essatio n of h o stilitie s caused a
sharp decline in em ploym ent in electro n ics
m anufacturing, from its w artim e peak of
380,000 w o rk ers in 1944,1 but the postw ar
15
*
3
advent of la rg e -s c a le telev isio n production
resu lted in another upw ard tre n d in em ­
ploym ent. Betw een 1947 and 1950, the p ro ­
duction of telev isio n sets ro se from 178,600
units, with a shipm ent value of $50 m illion,
to 7.5 m illion units, with a shipm ent value
of $1.35 billion, and electro n ics em ploym ent
ro se n early o n e-fifth .u
Betw een 1950 and 1961 electro n ics m anu­
facturing em ploym ent m ore than trip led ,
equaling an estim ated 778,000 w o rk ers in
the la tte r y e a r.15 The ex trem e rap id ity of
this expansion is evident when com pared
with a grow th of only 7 p ercen t over the
sam e period for all U.S. m anufacturing
em ploym ent.16*
B etw een 1950 and 1961, e lectro n ics ship­
m ents expanded m ore than fourfold, from
13Employment Outlook in Electronics Manufacturing (BLS Bul­
letin 1072, 1952), p. 10.
MFrom 206,000 workers in 1947, according to the U.S. Bureau
of the Census, Census of Manufactures: 1947, Vol. II, table 1,
p. 739, to 244,000 workers in 1950, according to “ Expansion in
Electronics Employment,” Monthly Labor Review, February
1952, p. 151. Both employment figures cover all workers in the
radios and related products and the electron tubes industries, as
defined in the 1945 edition of the Standard Industrial Classifica­
tion Manual (U.S. Executive Office of the President). It is be­
lieved that these two industries included nearly all workers
engaged in electronics manufacturing in 1947 and 1950.
15Employment estimate for 1950 appears in footnote 14,
estimate for 1961 appears in table 13.
16U.S. manufacturing employment averaged 15,241,000 workers
in 1950 and 16,267,000 workers in 1961. Data for 1950 from
Employment and Earnings Statistics for the United States, 190960 (BLS Bulletin 1312,1961), p. 29; data for 1961 from Employ­
ment and Earnings, June 1962, p. 92.

liProduction and shipments data in this report, unless other­
wise indicated, are estimates of the Electronic Industries Asso­
ciation (EIA) or are based on EIA estimates. Some of the EIA
data used were subsequently slightly revised by that organiza­
tion, but too late for incorporation here.
u U.S. Census of Manufactures: 1939, Vol. II, Pt. 2, table 2,
U.S. Bureau of the Census, p. 388.



14

$2.6 billion to $10.69 billion (table 6 ).17
This rapid grow th in shipm ents can be
attrib u ted m ainly to the widening v a rie ty
of electronic products which have resu lted
la rg e ly from a steadily growing effort in
R&D w ork by both G overnm ent and p riv ate
in d u stry . The com puter and the tra n s is to r
(d iscu ssed la te r in this chapter) a re m ajor
exam ples of the m any innovations due to
R&D w ork.

One m ajor reaso n for the grow th of ex­
penditures for m ilita ry electro n ics is the
shift in defense expenditures from a irc ra ft
to m issile s; electro n ic equipm ent accounts
for a sm aller pro p o rtio n of the cost of
a irc ra ft than of m issile s. Betw een the fisc a l
y ears 1954 and 1961, expenditures for the
p ro cu rem en t of m issile s ro se from $417
m illion to $2.97 billion while expenditures
for a irc ra ft p ro cu rem en t declined from
$9.08 billion to $5.9 billion (table 7).

E xpenditures for electro n ics R&D have
been risin g in recen t y e a rs, but sta tistic s
on these expenditures a re frag m en tary .
Funds for R&D in the e le c tric a l equipm ent
and com m unication in d u stries ro se about
60 p ercen t betw een 1956 and I960, from
$1.5 billion to $2.4 billion.18 A larg e p o r­
tion of electro n ics R&D is financed by the
F e d e ra l G overnm ent. This portion was
"approxim ately 85 percen t of the w hole" in
1959, according to one e stim a te .19

A nother m ajor reaso n for grow th in
m ilitary electro n ics expenditures is the
rapid expansion of m ilita ry re se a rc h , de­
velopm ent, te st, and evaluation (RDT& E)-from $2.19 billion in fisc a l 1954 to $6.13
billion in fisc a l 1961 (table 7). E xpenditures
for electro n ics have been taking an in c re a s ­
ing sh are of these RDT&E funds, as the
D epartm ent of D efense develops m ore com ­
plex w eaponry and in c re a se s the portion of
its developm ent effort for sp acecraft.
E xpenditures by the N ational A eronautics
TRENDS IN MAJOR PRODUCT
and Space A dm inistration have rise n sharply
CATEGORIES, 1950-61
since the agency was estab lish ed . F ro m
fiscal 1958 to fisc a l 1961 they ro se m ore
Military and Space Products. V irtually the than eig h tfo ld --fro m $89 m illion to $744
only p u rc h a se r of m ilita ry and space e le c ­ m illion. They a re estim ated at $1.29 billion
tro n ic products is the F e d e ra l G overnm ent. for fisc a l 1962 and $2.25 billion for fisc a l
The D epartm ent of D efense is the la rg e st 1963.20* An estim ated one-fourth of these
F e d e ra l cu sto m er, and was v irtu ally the expenditures are d isb u rsed to m anufacturing
only one before the N ational A eronautics estab lish m en ts for electro n ic product r e ­
and Space A dm inistration (NASA) was e sta b ­ search , developm ent, and p ro cu rem en t.
lish ed in 1958. Since then, the D epartm ent
of D efense has been purchasing m ore than Industrial and Commercial Products, in ­
90 percen t of the m ilita ry and space ship­ d u strial and co m m ercial electro n ics ship­
m ents shown in table 6.
m ents ro se rapidly betw een 1950 and 1961,
from $350 m illion to $2.2 billion (table 6).
The grow
Shipm ents of m ilita ry and space products exceeded th ra te for this product category
that
u stry
ro se from a value of $500 m illion in 1950 as a whole; ford uthe electro n icsmin dercial
in stria l and co m
to $5.49 billion in 1961--a n elevenfold in- shipm ents
p ercen t of to tal
c r e a s e . These shipm ents jum ped from electro n ics ro se from in141950 to 21 p ercen t
shipm ents
about one-fifth of to tal electro n ics shipr in 1961. E xpansion of th is product category
m ents in 1950 to about one-half during the has been esp ecially rapid since 1956. Table
y ears of the K orean conflict and have r e ­ 8 shows d etailed data for the y ears since
m ained at the la tte r lev el since then.
1956 for v ario u s types of in d u stria l and
17 Shipment values are not available by major product category co m m ercial equipm ent.
for years prior to 1950. Shipment values in table 6, and every­
where else in this report unless otherwise stated, are in current
Expanding applications for com puting,
dollars. Shipments shown in table 6 are reproduced in appendix A, data p ro cessin g , and in d u stria l control
table A -l, in constant 1960 dollars as well as current dollars.
i* National Science Foundation, Review of Data on Research equipm ent re p re se n t the p rin cip al reaso n
for this rapid recen t expansion. Betw een
and Development, No. 30, NSF 61-51, September 1961, p. 5.
19Coordination of Information on Current Federal Research
and Development Projects in the Field of Electronics, prepared
for the Senate Committee on Government Operations and its
Subcommittee on Reorganization and International Organiza­
tions, 87th Cong., 1st sess., 1961, p. 130.




20The Budget of the United States Government, Fiscal Year
Ending June 30, 1963 (1962), p. 110 for fiscal 1958 figure and
p. 246 for figures for other years. NASA expenditures in con­
stant 1960 dollars are shown in appendix A, table A-2.
15

1956 and 1961, shipm ents of com puters
and in d u strial co n tro ls ro se from $240
m illion to $980 m illion, and from 25 p e r­
cent to 45 p ercen t of to tal in d u strialco m m ercial electro n ics shipm ents (table 8).
The firs t g en eral-p u rp o se electro n ic
com puter designed fo r b u sin ess data p ro c ­
essing and scientific use (Univac I) was
produced around 1948. By I960, com puters
in use in this country w ere estim ated to
num ber betw een 3,600 and 4,40021 ; by the
close of 1961, m ore than 8,800 com puters
had been in s ta lle d .22
C om puters have found application in r e ­
se a rc h la b o ra to rie s, business offices, and
in d u stria l production. The firs t com puter
designed for on-line in d u strial use was
applied to a petroleum re fin e ry operation
in 1958. C om puters have since been in ­
stalled to control m any additional types of
production o p eratio n s, such as those in
chem ical plants, e le c tric pow er stations,
and steel rolling m ills.
C om puter re s e a rc h also contributed to
the developm ent of specialized electro n ic
devices used to control m etalw orking op­
e ra tio n s. M achines equipped with these
devices operate autom atically, taking th e ir
in stru ctio n s from p erfo rated tape, m ag­
netic tape, o r o ther m edia. N um erical
co n tro l has been applied to d rilling, boring,
m illing, turning, shaping, punching, flam e
cutting, welding, grinding, and tube bend­
ing op eratio n s. M ore than 1,500 n u m e ri­
cally controlled m achine tools w ere sold
by m id- 1961.282
9
T esting and m easuring equipm ent is
another type of in d u strial electro n ic p ro d ­
uct which has found expanded applications
in recen t y e a rs. Shipm ents of such equip­
m ent ro se from $170 m illion in 1956 to
$290 m illion in 1961 (table 8). E xam ples of
new er kinds of testin g and m easuring
equipm ent include tra n sisto riz e d scale
sy stem s; electro n ic ca lip e rs; X -ra y gages,
such as those used in steel plants to control
the thickness of sheet steel; tube and e le c ­
tro n ic c irc u itry testin g equipm ent; cathodera y o scilloscopes; and audio o sc illa to rs.

Shipm ents of landm obile, m icrow ave, and
broadcasting equipm ent in c re a se d betw een
1956 and 1961, from $120 m illion to $215
m illion (table 8). C ontributing to this in­
c re a se has been the grow ing dem and for
tw o-w ay radio equipm ent designed for use
in autom obiles, boats, and o ther m obile
in stallatio n s, for m icrow ave re la y equip­
m ent, and for co m m ercial radio and te le ­
vision broadcasting equipm ent. M icrow ave
re la y is a relativ ely new system of com ­
m unication involving the tra n sm issio n of
ultrahigh freq u en cies (UHF) along a se rie s
of sh o rt-ra n g e radio re p e a te r statio n s.
Many types of m ultiestab lish m en t e n te r­
p ris e s , including m anufacturing firm s,
public u tilitie s, in su ran ce com panies, and
banks, use m icrow ave equipm ent to feed
data into com puters from d iv erse lo c a ­
tions. C om m ercial radio and telev isio n
stations on the a ir in creased by 28 p ercen t
betw een 1956 and 1961, from 3,922 to 5,034,
and the num ber of educational telev isio n
stations on the a ir ro se from 20 to 5 4 .24
S tereo -F M radio broadcasting began in
1961, and, by D ecem ber of that y ear, m ore
than 30 stations w ere on the a i r . 25
Betw een 1956 and 1961 the shipm ent value
of "O ther in d u stria l and co m m ercial p ro d ­
u cts" ro se by 70 percen t, from $420 m il­
lion to $715 m illion (table 8). This grow th
re fle c ts in c re a se s in the num ber of civil
a irc ra ft,26 the growing use of electro n ic
navigational aids on p assen g er ships and
m erchant v e sse ls, expansion of the atom ic
energy fie ld ,27 and an expanding m ark et
for m edical and therapeutic electro n ic
equipm ent.2829
u 27th Annual Report, Fiscal Year Ended June 30, 1961 (Federal Communications Commission), pp. 59-60.
25 Electronic News, Fairchild Publications, Inc., New York,
Nov. 27,1961, p. 28.
26 Among the electronic items used for civil aircraft are com­
munication equipment and navigational aids such as air and
ground traffic control equipment, altimeters, autopilots, radio
direction finders, and flight control equipment.
27Examples of electronic devices for nuclear work include
dosimeters, geiger counters, reactor sensing controls, radia­
tion detection devices, and particle accelerators.
*®Including such items as X-ray equipment, cardiographs,
diathermy equipment, ultraviolet microscopes, and ultrasonic
drilling equipment used by dentists.
29Additional example of “ other industrial and commercial
products’* include commercial sound equipment (coin-operated
phonographs, public address systems, intercommunications sys­
tems, and theater sound equipment); cryptographic devices, and
other communication equipment; automotive equipment, such as
headlight dimmers and speed controls; geophysical exploration
equipment; meteorological equipment, such as radiosondes and
wind-speed indicators; radio astronomy equipment; lie detec­
tors; photoelectric equipment; and electronic drafting equipment.

a Frank Leary, “ New Developments in Computers,“ Elec­
tronics, McGraw-Hill, New York, Aug. 26,1960, p. 30.
22 “ Computers Census as of December 1961,“ Business Auto­
mation, O. A. Business Publications, Inc.,Elmhurst, 111., January
1962, p. 39.
2* American Machinist/Metalworking Manufacturing, McGrawHill, New York, Nov. 27, 1961, p. 89.
‘



16

Consumer Products. The value of consum er

p rin cip ally tra n s is to rs , diodes, and re c ti­
electro n ics shipm ents in creased from $1.5 fie rs; and other com ponents, such as cap ac­
billion in 1950 to $2.05 billion in 1961 ito rs, re s is to rs , tra n sfo rm e rs, re la y s,
(table 6). This rep resen ted a considerably connectors, s w i t c h e s , prin ted c irc u it
low er rate of grow th than the average for b o ard s, sp eak ers, tu n e rs, and antennas.
the electro n ics in d u stry as a whole. Con­
su m er products fell from the position of
Com ponents a re used in o rig in al m ili­
la rg e st electro n ics product categ o ry in tary , in d u strial, o r consum er electro n ic
1950, with 58 p ercen t of total electro n ics equipm ent o r as rep lacem en ts to m aintain
shipm ents, to th ird la rg e st categ o ry in and re p a ir such equipm ent. The m ajo rity
1961--follow ing both m ilita ry and indus­ of com ponents--about 70 p ercen t of ship­
tr ia l e le c tro n ic s--w ith 19 percen t of to tal m ents value in 1960 and 1961- - a r e used in
e lectro n ics shipm ents.
o rig in al equipm ent and the re s t as re p la c e ­
m ent p a rts (table 11).
M ajor consum er item s are m onochrom e
Shipm
com ponents in ­
(black and white) telev isio n sets, which c re a se d ents of electro n ic in 1950 to $3.27
from $1.16 billion
accounted for about 40 p ercen t of consum er billion in 1961 (tables 11 and 12). Shipm ents
electro n ics shipm ents in 1961; phonographs
s is
rs ex­
and rad io s, each accounting for roughly 15 of tra n espto rs , diodes, and re c tifie1950* s.
panded
ecially rapidly during the
p ercen t of 1961 consum er electro n ics ship­ Betw een 1954--the e a rlie s t year for which
m ents; and phonograph re c o rd s, accounting shipm ents
these
for approxim ately 12 p ercen t of 1961 con­ a b le--an d data fo rtra n s isproducts are av ail­
1961,
to shipm ents
su m er electro n ics shipm ents. T rends b e­ c re a se d from $5.1 m illionr to $299.5 min ­
il­
tw een 1950 and 1961 in telev isio n and radio lion, and diode and re c tifie r shipm ents
production a re indicated in table 9, and in from $20.0 m illion to $200.0 m illion (table
phonograph and p honograph-record sales 12). Much of th is in c re a se has been at the
in table 10.
expense of receiving tubes, since sem i­
conductors p erfo rm m any of the functions
Some of the new er consum er products
tubes. Shipm
include color telev isio n re c e iv e rs, tape p erfo rm ed by e n relativ ely ents of receiving
tubes have ris
1954.
re c o rd e rs , high fidelity and stereophonic In 1960 and 1961,tra n s is to r little since alone
shipm ents
sound equipm ent, electro n ic organs, hom e w ere
intercom m unication sy stem s, autom atic tube s . n e a rly as larg e as those of receiving
g arag e-d o o r openers, electronic ovens,
m in iatu rized hearing aids, and Citizen* sThe
1948, is
Band radio equipm ent for consum er u se. nsolid tra n s is to r, invented incan p erfo rma
state" device30 which
C olor telev isio n accounted for only a sm all m any of the functions of an electro n tube,
segm ent of the to tal telev isio n m ark et such
rectificatio
plification, o sc il­
during the 1950* s. S everal m ajor p ro d u cers lation,as sw itching, n , ampulse generation.
and
have recen tly begun m anufacturing color The advantages of tra n s is to rs over c e rta in
se ts, and consum er acceptance of the
n tu e s--sm a
product is expected to grow w ith a w ider types of electroen ts, blow heat ll size, low
pow er req u irem
dissipation,
v a rie ty of m odels to choose from , im p ro v e­ long life, and ru g g e d n e ss--le d to th e ir use
m ents in quality of sets, and in creased during the 1950*s w here these
co lo r program ing. Sales of color telev isio n w ere esp ecially im portant. T raqualities
sisto
sets m ore than doubled betw een 1961 and found w idespread application not nonly rs
in
1962, totaling over 400,000 in the la tte r m ilita ry -sp a c e and in d u stria l-c o m m e rc ial
y ear.
equipm ent but also in m any consum er
products, such as hearing aids, portable
Electronic Components. E lectronic com ­
ponents co n sist of receiving tubes, TV rad io s, and telev isio n re c e iv e rs.
p ictu re tubes, pow er tubes, and specialso The
purpose tubes such as those used in u ltra - pends onoperation of transistors and other semiconductors de­
the structure and characteristics of solids, whereas
high frequency equipm ent; sem iconductors, electron tubes enclose a vacuum or gas.




17

Table 6. Value of electronics shipments, by major product category, 1950-62

Year

All
electronics
shipments

Military
and space
products1

Industrial
and commercial
products

Consumer
products2

Replacement
parts

Value (millions)

1950.........
1951.........
1952.........
1953.........
1954.........
1955.........
1956.........
1957.........
1958.........
1959.........
1960.........
1961.........
19623 ........

$2,600
3,250
4,250
5,150
5,400
5,800
6,850
8,000
8,260
9,240
9,950
10,690
11,820

$500
1,050
2,050
2,650
2,700
2,800
3,450
4,100
4,420
4,740
5,100
5,490
6,220

$350
450
500
600
650
750
950
1,300
1,380
1,600
1,850
2,200
2,500

$1,500
1,400
1,300
1,400
1,400
1,500
1,600
1,700
1,600
2,000
2,100
2,050
2,100

$250
350
400
500
650
750
850
900
860
900
900
950
1,000

Percent of total electronics shipments

1950.........
1951.........
1952.........
1953.........
1954.........
1955.... .....
1956.........
1957.........
1958.........
1959.........
1960.........
1961.........
19623 ........

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

13.5
13.8
11.8
11.7
12.0
12.9
13.9
16.3
16.7
17.3
18.6
20.6
21.2

19.2
32.3
48.2
51.5
50.0
48.3
50.4
51.3
53.5
51.3
51.3
51.4
52.6

57.7
43.1
30.6
27.2
25.9
25.9
23.4
21.3
19.4
21.6
21.1
19.2
17.8

9.6
10.8
9.4
9.7
12.0
12.9
12.4
11.3
10.4
9.7
9.0
8.9
8.5

1 Consists of expenditures for (1) military electronics research, development, and pro­
curement (exclusive of maintenance work and services), except that most research and devel­
opment expenditures are excluded for the years before 1961, and (2) space electronics re­
search, development, and procurement.
2 Includes phonograph records. Excludes color television sets.
3 Estimated.
Note: Because of rounding, sums of individual items may not equal totals.
Source: Based on estimates of the Electronic Industries Association, except that ship­
ments of military and space products include an addition estimated by the Bureau of Labor
Statistics for space electronics expenditures by the National Aeronautics and Space Ad­
ministration, beginning with 1958 when the civilian space agency was established.




18

Table 7.

Department of Defense expenditures for military functions,1 fiscal years, 1954-63
[ In millions ]
Fiscal year ending June 30

Function
1954

1955

1956

1957

1958

1959

1960

1961

19621
2

19632

Total3...........................

$40,336

$35,532 $35,791

$38,439

$39,062

$41,233 $41,215

$43,227

$46,710 $47,950

Military personnel......... •••••.......
Operations and maintenance.............
Procurement............................
Aircraft. ••••••••...... .............
Missiles. •................. ..........
Ships........................... •••••
Ordnance, vehicles, and related equip­
ment ......... ....................
Electronics and communications........
Other equipment........... ...........
Research, development, test, and evaluation....... ......... ...............
Military construction........ ...........
Revolving and management funds..........
Adjustment to budget basis........... .

$11,643
9,162
15,957
9,080
417
905

$11,403 $11,582
8,400
7,931
12,838 12,227
7,835
8,804
604
1,005
858
944

$11,409
9,487
13,488
8,647
1,855
842

$11,611
9,761
14,083
8,793
2,434
1,105

$11,801 $11,738
10,378 10,223
14,409 13,334
7,730
6,272
3,337
3,027
1,491
1,744

$12,085
10,611
13,095
5,898
2,972
1,801

$13,250 $13,415
11,595 11,511
14,836 15,356
6,449
5,568
3,899
3,523
2,049
2,308

3,334
700
1,521

1,191
441
854

1,260
660
608

674
704
767

365
663
723

399
720
730

443
1,093
755

675
1,042
706

1,135
1,196
484

1,717
1,208
656

2,187
1,744
-210
-148

2,261
1,715
-610
-6

2,101
2,079
-685
86

2,406
1,968
-320
-

2,504
1,753
-651
-

2,866
1,948
-169
-

4,710
1,626
-416
-

6,131
1,605
-300
-

6,039
1,250
-260
-

6,650
1,189
-171
-

1 Excludes military assistance, atomic energy work, civil defense, and defense-related services.
2 Estimated.
3 Totals are shown in constant 1960 dollars in appendix A, table A-2.
Note: Because of rounding, sums of individual items may not equal totals.
Source: Office of the Assistant Secretary of Defense (Comptroller), Fiscal Analysis Division (FAD) 397-FY 1963 (l), Jan. 18, 1962.




Table 8.

Value of industrial and commercial electronics shipments, 1956-61

[ In millions ]
1956

1

1958

1959

1960

1961

$1,300

$1,380

$1,600

$1,850

$2,200

$240
170

$415
210

$450
220

$525
245

$710
265

$980
290

120
420

All shipments...................
Computing, data processing, and industrial control equipment1 ............
Testing and measuring equipment........
Landmobile, microwave, and broadcasting
equipment...........................
Other industrial and commercial products

1957

$950

Type of equipment

150
525

155
555

175
655

190
685

215
715

Includes estimated value of leased, as well as sold, electronic equipment.

Source: Data for 1960 and 1961 from Electronic Industries Association. Data for 1956 to
1959 from the Association's Electronic Industry 1960 Fact Book, Washington, D.C., p. 23.

Table 9. Quantity and value of television and radio production,
by type of unit, 1950-61

[Quantity and total value, in thousands]
Television production1
Quantity

Year
Total
production
1950...
1951...
1952...
1953...
1954...
1955...
1956...
1957...
1958...
1959...
1960...
1961...

7,463.8
5,384.8
6,096.3
7,215.8
7,346.7
7,756.5
7,387.0
6,399.3
4,920.4
6,349.4
5,708.3
6,177.8

Tableportable
2,941.6
2,275.9
2,837.5
3,224.7
4,249.3
4,439.7
4,753.8
3,845.8
2,716.9
3,612.6
3,274.3
3,812.2

Value
Phonographcombination

Console

3,820.1
2,774.9
3,038.9
3,755.3
3,011.5
3,199.8
2,556.8
2,433.4
2,068.6
2,567.0
2,211.2
2,135.4

702.2
334.0
219.9
235.8
85.8
117.0
75.4
120.1
134.9
169.8
222.8
230.3

Total
production

Average
per set

$1,350,000
956,986
1,049,000
1,230,298
1,028,540
1,071,020
938,596
832,747
667,899
896,405
825,501
835,423

$181
178
172
171
140
138
127
130
136
141
145
135

Radio production
Value

Quantity
Total
production
1950...
1951...
1952...
1953...
1954...
1955...
1956...
1957...
1956...
1959...
1960...
1961...

(2)
11,928
10,431
12,852
10,028
14,133
13,518
14,505
11,747
15,622
17,127
17,374

Home

Clock

7,053
5,275
3,539

(2)
777
1,929
2,041
1,875
2,244
2,311
2,516
2,038
2,794
2,720
3,017

3 ,8 8 6

2,696
2,998
3,037
3,228
2,621
3,145
3,440
3,042

Portable
1,675
1,333
1,720
1,742
1,333
2,027
3,113
3,265
3,373
4,128
4,535
5,747

Auto
4,740
4,543
3,243
5,183
4,124
6,864
5,057
5,496
3,715
5,555
6,432
5,568

Total
production
(2)
$298,439
238,348
286,471
220,616
283,225
288,474
351,601
314,585
330,874
340,484
313,531

1 Excludes color television sets.
2 Not available.
Note: Because of rounding, sums of individual items may not equal totals.
Source: Based on estimates of the Electronic Industries Association.




20

Average
per set
(2)
$25
23
22
22
20
21
24
27
21
20
18

Table 10. Quantity and value of phonograph sales, by type of unit, and value
of sales of phonograph records, 1950-61
Phonograph
records

Phonographs
Quantity (thousands0
Year

1950.v,
1951...
1952...
1953...
1954...
1955...
1956...
1957...
1958...
1959...
I960...
1961...
l

Quantity:
Total sales

(3 )
(3)
1,350.0
1,605.0
2,683.0
3,006.0
4,101.0
4,872.0
4,096.0
4,390.0
4,627.0
(3)

Record
player
attachments

(3 )
(3 )
322.0
724.0
1,886.0
2,234.0
3,338.0
3,718.0
3,212.0
3,475.0
3,681.0
2,979.0

(3 )
(3 )
538.0
491.0
358.0
393.0
451.0
941.0
760.0
829.0
842.0
1,010.0

(3 )
(3)
490.0
390.0
439.0
379.0
312.0
213.0
124.0
86.0
104.0
(3)

Value of total
sales2
(millions)

$116.2
(3)
(3)
(3)
(3)
111.1
154.5
186.7
198.3
372.7
394.5
(3 )

Single
phonograph

Radiophonograph
combination1

Value of
total
sales2
(millions)

$82.0
85.0
90.0
91.0
87.0
112.0
155.5
180.0
198.0
230.5
228.4
244.3

1 Radio-phonograph combinations are included here rather than with radios. Televisionphonograph combinations, on the other hand, are counted with television production.
2 Sales value at factory level.
3 Not available.
Source: Based on estimates of the Electronic Industries Association.

Table 11.

Value of electronic component shipments, by use as original equipment or
replacement parts, 1950-61
[Value in millions]

Year

1950...
1951...
1952...
1953...
1954...
1955...
1956...
1957...
1958...
1959...
1960...
1961...

All
components
shipped

$1,158
1,261
1,730
C1 )
2,008
2,200
2,280
2,435
2,325
2,833
3,054
3,266

Components shipped for use
in original equipment

Components shipped for use
as replacement parts

Amount

Percent of all
components shipped

Amount

$908
911
1,330
C1 )
1,358
1,450
1,430
1,535
1,465
1,933
2,154
2,316

78.4
72.2
76.9
C1 )
67.6
65.9
62.7
63.0
63.0
68.2
70.5
70.9

$250
350
400
500
650
750
850
900
860
900
900
950

1 Not available.
Source: Based on estimates of the Electronic Industries Association.




21

Percent of all
components shipped
21.6
27.8
23.1
C1 )
32.4
34.1
37.3
37.0
37.0
31.8
29.5
29.1

Table 12.

Value of electronic component shipments, by type of component, 1950-61

Type of component

1950

1951

1952

1953

1954

1955

$2,008.0
708.0
276.0
206.1
5.1
2 20.0
(X )
200.0
130.0
103.0
867.0

$2,200.0
800.0
358.1
209.0
12.3
2 30.0
(X )
215.0
150.0
96.0
939.0

Value (millions)

All components shipped.. $1,158.0
461.0
Tubes and semiconductors.....
250.0
Receiving tubes............
210.7
TV picture tubes...........
Transistors...............
(x )
Diodes and rectifiers......
(x )
All others................
(?)
Capacitors..................
(x)
Resistors...................
(?)
Transformers................
(?)
All other components3........
(x)

$1,261.0
473.0
261.0
122.2
(x)
(l)
(?)
(x )
(?)
C>
(x)

$1,730.0
604.0
259.1
170.7
C1 2
)
C1)
(X)
200.0
100.0
150.0
676.0

(?)
(x)
$303.7
234.9
(x )
(x)
(?)
(?)
(?)
(?)
(x)

Percent of total components shipped
All components shipped..
Tubes and semiconductors......
Receiving tubes...........
TV picture tubes...........
Transistors...............
Diodes and rectifiers......
All others................
Capacitors..................
Resistors...................
Transformers................
All other components3 .........

100.0
39.8
21.6
18.3
(x)
(x)
(?)
(?)
(?)
(x )
(x)
1956

100.0
37.5
20.7
9.7
(X )
(x)
(x )
(?)
(?)
(?)
(x )
1957

100.0
34.9
15.0
10.0
<t>
(X)
11.6
5.8
8.7
39.1
1958

(?)
(?)
(x)

100.0
35.3
13.7
10.3
.3
2 1.0
C1)
10.0
6.5
5.1
43.2

1959

1960

100.0
(?)
(?)
(x )
(x)
(?)

100.0
36.4
16.3
9.5
.6
2 1.4
(X)
9.8
6.8
4.4
42.7
1961

Value (millions)
All components shipped.. $2,280.0
853.0
Tubes and semiconductors.....
374.2
Receiving tubes...........
TV picture tubes...........
196.2
37.4
Transistors...............
76.0
Diodes and rectifiers......
169.2
All others................
224.0
Capacitors..................
175.0
Resistors...................
90.0
Transformers................
938.0
All other components3........

$2,435.0
925.0
384.4
183.2
69.7
102.3
185.4
225.0
171.0
110.0
1,004.0

$2,325.0 $2,833.0
914.0 1,152.0
341.9
368.9
163.5
183.8
222.0
112.7
112.8
166.3
183.1
211.0
218.0
267.0
194.0
158.0
129.0
102.0
933.0 1,091.0

$3,054.0
1,289.0
331.7
180.8
301.4
224.0
251.1
295.0
227.0
136.0
1,107.0

$3,266.0
1,303.0
311.1
185.6
299.5
200.0
306.8
338.0
274.0
153.0
1,198.0

Percent of total components shipped
All components shipped..
Tubes and semiconductors.....
Receiving tubes...........
TV picture tubes..........
Transistors •••........ .
Diodes and rectifiers......
All others................
Capacitors..................
Resistors...................
Transformers................
All other components3........

100.0
37.4
16.4
8.6
1.6
3.3
7.4
9.8
7.7
3.9
41.1

100.0
38.0
15.8
7.5
2.9
4.2
7.6
9.3
7.0
4.5
41.2

100.0
39.3
14.7
7.0
4.8
4.9
7.9
9.4
6.8
4.4
40.1

100.0
40.7
13.0
6.5
7.8
5.9
7.5
9.4
6.8
4.6
38.5

100.0
42.2
10.9
5.9
9.9
7.3
8.2
9.7
7.4
4.5
36.3

100.0
39.9
9.5
5.7
9.2
6.1
9.5
10.4
8.4
4.7
36.7

1 Not available.
2 Includes only germanium and silicon diodes and rectifiers.
3 Includes such components as speakers, tuners, antennas, relays, chassis, printed cir­
cuit boards, and filters.
Note: Because of rounding, sums of individual items may not equal totals.
Source: Based on estimates of the Electronic Industries Association.




22

CHAPTER 3. ESTIMATES AND PROJECTIONS OF
ELECTRONICS MANUFACTURING EMPLOYMENT
EMPLOYMENT AND SHIPMENTS
ESTIMATES AND PROTECTIONS
This chapter p re se n ts estim ates of e le c ­
tro n ic s m anufacturing em ploym ent fo r 1958
to 1961, and pro jectio n s of such em ploy­
m ent fo r 1970. The m ethodology used to
d eriv e these estim ates and pro jectio n s is
sum m arized b riefly at the end of this
ch ap ter and d escrib ed in detail in appen­
dix A.
The estim ates and projections a re shown
in table 13 and c h a rts 1 and 2 for em ploy­
m ent, and table 14fo r shipm ents. E stim ated
em ploym ent in electro n ics m anufacturing
ro se from 610,000 w o rk ers in 1958 to
778,000 in 1961, and is expected to reach
n e a rly 1.1 m illion w o rk ers by 1970. The
annual grow th ra te p ro jected for the r e ­
m ainder of the 1960's (3.8 percent) is con­
sid erab ly low er than that which o ccu rred
betw een 1958 and 1961 (8 .4 percent), chiefly
because the in d u stry 1s grow th rate is ex­
pected to slacken a fte r 1965 owing to an
anticipated leveling off in m ilita ry and
space electro n ic expenditures.
Value of electro n ics shipm ents, in con­
stant I960 d o llars, ro se from $8.2 billion
in 1958 to $10.8 billion in 1961, and is
expected to reach n e a rly $20 billion by
1970. As in the case of em ploym ent, the
annual grow th ra te p ro jected for the re s t
of the 1960's (6.8 percent) is low er than
that which o ccu rred betw een 1958 and 1961
(11.3 p e rcen t),81 and the la rg e r p a rt of the
p ro jected in c re a se is expected to take place
by 1965. The m ore rapid expansion p ro jected
for shipm ents than for em ploym ent re fle c ts
an adjustm ent for p ro jected in c re a se s in
shipm ents p er w orker of roughly 2.9 p e r­
cent p e r annum com pounded.8*

As stated e a rlie r in the re p o rt,88 the
estim a te s and p ro jectio n s of th is study r e ­
fe r to electro n ics em ploym ent and ship­
m ents in m anufacturing in d u strie s, and
exclude electro n ics activ ity in the A rm ed
F o rc e s, the F e d e ra l G overnm ent, u n iv er­
sitie s, arid nonprofit re s e a rc h c e n te rs.
E stim ates of the num ber of electro n ics
w o rk ers in the A rm ed F o rc e s a re not
available, but at le a st 55,000 w o rk ers a re
estim ated to have been em ployed in late
1960 in electro n ics w ork in the F e d e ra l
G overnm ent, u n iv e rsitie s, and nonprofit
re s e a rc h c e n te rs. The e lectro n ics w ork
done in these o rganizations c o n sists chiefly
of re se a rc h , developm ent, and the negotia­
tion and ad m in istratio n of c o n tra c ts.84
The rem ain d er of th is section of the
ch ap ter d e sc rib e s em ploym ent and shipm ent
tren d s and outlook in each of the m ajor
electro n ic product c ateg o ries.
Military and Space P r o d u c t s . The w ork
force engaged in m anufacturing m ilita ry
and space electro n ic products is expected
to grow by 176,000 w o rk ers betw een 1961
and 1970, from 283,000 to 459,000. This *
4
3

increase from Bureau of Labor Statistics estimates in U.S.
Department of Labor News Release 4698, “ Output per Man-Hour
in the Private Economy in I960,** Aug. 18, 1961, p. 2.) The
1947-60 annual increase in manufacturing output per man-hour
was used as the best available approximation of the annual in­
crease in shipments per employee in electronics manufacturing,
despite differences between the concepts of output per man-hour
and shipments per employee.
33See footnote 5. That footnote lists the exclusions from the
report in terms of SIC industries.
34Sources for this employment estimate are few. A survey
conducted by the Electronic Industries Association in late 1960
indicated that 22,000 engineers and scientists were employed in
electronics R&D in these organizations--13,000 in the Federal
Government and 9,000 in universities and nonprofit research
centers. A survey sponsored by the National Science Foundation
indicated that about 40 percent of the work force in research
installations are engineers and scientists. (See Nonprofit Or­
ganizations —Expenditures and Manpower—1957, National Science
si See table 14, footnote 3.
32 This adjustment was varied for each of the four major Foundation (NSF 61-37), May 1961, p. 31.) Applying this 40 per­
product categories to reflect projected differences among them cent assumption to the estimate of 22,000 engineers and scien­
tists derived from the EIA survey, a resultant total of 55,000
in technological change, automation, etc. The adjustment rates
workers is obtained. This estimate is probably low since, in
were so calculated, however, that their weighted average approxi­
addition to its R&D activities, the Federal Government employs
mated a per annum increase of 2.9 percent compounded, equal
to the estimated rate of annual increase over the 1947-60 large numbers of administrative and clerical workers to nego­
period in manufacturing output per man-hour. (Rate of annual tiate and supervise electronics contracts.




23

grow th re p re se n ts m ore than half (57 p e r­
cent) of the em ploym ent expansion p ro jected
for the en tire electro n ics in dustry. The
1961-70 ra te of em ploym ent grow th for
m ilita ry and space products is expected to
be m ore rapid than that fo r any other m ajor
electro n ic product category, although m ost
of the p ro jected in c re a se w ill occur before
1965. By 1970, the w ork force in m ilita ry
and space products is p ro jected at 42 p e r­
cent of to tal electro n ics em ploym ent, com ­
p ared with 36 p ercen t in 1961. (See table 13
and c h a rts 1 and 2).
The co n stan t-d o llar value of m ilita ry and
space electro n ics shipm ents is expected to
n early double betw een 1961 and 1970 (from
$5.5 billion to $10.7 b illio n --tab le 14). As
w ith em ploym ent, the anticipated grow th
ra te in shipm ents fo r th is product category
is higher than that for any other m ajor
product category but m ost of the expansion
is expected to occur before 1965.
Shipm ents of m ilita ry and space e le c ­
tro n ic products depend alm ost en tirely
upon expenditures for electro n ics re se a rc h ,
developm ent, and pro cu rem en t by the De­
p artm en t of D efense and NASA. The D ep art­
m ent of D efense accounts for m ost of these
ex p e n d itu re s--96 p ercen t in fisc a l 1961
and an expected 86 p ercen t for fiscal
1970.85 NASA's electro n ics spending, b e­
ginning from a m uch sm aller base, is
expected to in c re a se relativ ely m uch fa ste r
than that of the D epartm ent of D efense.
B etw een the fisc a l y ears 1963 and 1970,
NASA's electro n ics expenditures are ex­
pected to grow n early threefold as against
an anticipated 50 p ercen t in c re a se in DOD
expenditure s .86
M ajor facto rs expected to boost m ilita ry
and space electro n ics spending during the
1960*3 include (1) the growing electronic
sophistication and com plexity of not only
sp acecraft but also m issile s, a irc ra ft, and
o th er defense item s; (2) the national effort
to com plete a m anned lu n ar expedition
before 1970; and (3) the in creasin g size
and im portance of the m ilita ry space p ro ­
g ram . It is expected that electro n ics ex- 3
6
5
35 See appendix A, table A-2. The projections for military and
space expenditures shown in table A-2 and elsewhere in this
report reflect the assumptions used, conversations with industry
and government officials, published information bearing on the
subject, projections of historical trends, etc. The projections
might be different, of course, if based on other assumptions or
other interpretations of the sources available.
36See appendix A, table A-2.




penditures of the D epartm ent of D efense
w ill slow down in th e ir ra te of grow th
during the la s t half of the 1960*s, as som e
of the Nation* s larg e m ilita ry electro n ic
p ro g ram s move beyond th e ir re se a rc h , de­
velopm ent, and m ajor production stag es,
and also that NASA’s expenditures w ill
lev el off during the m id -I9 6 0 's.
Industrial and Commercial Products. E m ­
ploym ent in the m anufacture of in d u stria l
and co m m ercial electro n ic products is ex­
pected to ris e by 60,000 w o rk ers betw een
1961 and 1970, from 126,000 to 186,000.
This annual grow th ra te of 4.5 p ercen t
com pounded w ill be slightly higher than that
for the electro n ics in d u stry as a whole
over the sam e period, although m uch low er
than that for the in d u stria l-c o m m e rc ial
field betw een 1958 and 1961. By 1970, em ­
ploym ent in the in d u stria l-c o m m e rc ial se c ­
to r is p ro jected at 17 p ercen t of to tal e le c ­
tro n ics em ploym ent, com pared with 16
p ercen t in 1961. (See table 13 and ch a rts
1 and 2.)
This expansion in em ploym ent is based
on an anticipated grow th in shipm ents of
in d u strial and co m m ercial electro n ic p ro d ­
ucts, from $2.2 billion in 1961 to $4.1
billion in 1970 (table 14). A v a rie ty of
facto rs a re expected to contribute to this
anticipated grow th.
R ising lev els of population and re a l in ­
com e p er capita p ro jected for the 1960's
a re expected to stim ulate la rg e r expendi­
tu re s for b u sin ess plant and equipm ent,
including in d u strial and co m m ercial e le c ­
tronic equipm ent. E lectronic devices a re
expected to assum e in creasin g im portance,
not only in m anufacturing but also in such
d iv erse in d u stria l activ ities as m ining, the
serv ice in d u strie s, and w holesale and re ta il
tra d e . A utom ation sy stem s, heavily depend­
ent on electro n ic devices, w ill be in stalled
in growing num bers in A m erican in d u stry .
E lectronic control of product quality, color,
quantity, and other c h a ra c te ristic s w ill b e­
com e m ore com m on in in d u stries such as
ch em icals, petroleum refining, b ev erag es,
and d airy pro d u cts. In m etalw orking, grow ­
ing num bers of production m achines w ill be
operated autom atically through the use of
electro n ic c o n tro ls. The atom ic energy
industry, which w ill need in creasin g am ounts
of electro n ic products such as re a c to r
sensing co n tro ls, G eiger co u n ters, and
d o sim eters, exem plifies grow th in d u stries
expected to stim ulate in d u strial electro n ics
dem and during the 1960's.
24

Continuance of the population shift to the incom e p er capita, (2) in c re a se s in the num ­
suburbs should re su lt in la rg e r num bers of b er of wom en w o rk e rs,38 which a re expected
point-to-point m icrow ave in stallatio n s to to cre a te m ore dem and for labor saving
facilitate com m unications betw een c e n tra l household equipm ent, m uch of it electro n ic,
city h e a d q u a rte rs--su c h as downtown banks, and (3) in c re a se s in the num ber of new
departm ent sto re s, and w areh o u ses--an d fam ily fo rm atio n s, with expanding dem and
th e ir suburban b ran ch es. Increasing use of for new hom es and for electro n ic house­
intercom m unication system s betw een of­ hold equipm ent. The rate of new fam ily
fices and production departm ents is ex­ form ations is expected to ris e esp ecially
pected. P a st tren d s indicate that the use of rapidly after the m id -I960*s ,89 as children
m obile radio system s w ill be in growing born during the postw ar period of the m iddem and by police and fire dep artm en ts, 1940!s reach m arriag eab le age. L argely
highw ay m aintenance se rv ic e s, taxicab because of th is, the grow th ra te in ship­
com panies, am bulance serv ices, fo re s try m ents and em ploym ent for consum er e le c ­
co nservation crew s, and other u s e rs . The tro n ics is expected to be higher during the
dem and for a irc ra ft electro n ics ap p aratu s, second half of the 1960!s than during the
such as ra d a r and com m unication sy stem s, firs t half.
is also expected to ris e . The num ber of
active civil a irc ra ft in the country by 1970
T elevision sets, rad io s, and phonographs
is p ro jected at about 105,000, o n e-th ird are expected to continue as the p rin cip al
higher than the num ber in 1961,87 and the consum er electro n ic item s during the r e ­
am ount of electro n ic equipm ent p er a ir ­ m ainder of the 1960,s. In creases a re an tic­
c ra ft w ill continue to grow .
ipated in the num ber of hom es with te le v i­
sion sets and with m ore than one set, and
P erh ap s the m ajor grow th item in the in the num ber of telev isio n sets that need
in d u stria l electro n ics spectrum is the com ­ rep lacem en t. The dem and for color te le ­
p u ter. Com puting and data p ro cessin g vision should also in c re a se as the cost of
equipm ent are expected to experience a such sets is reduced, a w ider v a rie ty of
stead ily risin g dem and during the re s t of m odels becom es av ailable, color tra n s m is ­
th is decade from fa c to rie s, insurance com ­ sion and recep tio n a re im proved, and m ore
panies, banks, re s e a rc h la b o ra to rie s, and p ro g ram s a re te le c a st in co lo r.
other so u rces. V ery recen t developm ents
include se lf-se rv ic e com puter c e n te rs,
R ising R&D expenditures by in d u stry and
com puters to p ro g ram other com puter op­ governm ent a re expected to re su lt in m any
e ra tio n s, and com puters for use in c la s s ­ new and im proved consum er p roducts. R e­
ro o m s, lib ra rie s , and m edical diagnostic cently developed item s include F M -stereo
radio broadcasting and reception equipm ent;
c e n te rs.
com pact ra d a rs , rad io -telep h o n es, and
Consumer P r o d u c t s . Em ploym ent in the radio d irectio n fin d ers for p leasu re boats;
m anufacture of consum er electronic p ro d ­ electro n ic toys, such as read y -to -assem b le
ucts is expected to grow by 30,000 w o rk ers rad io s and intercom m unication system s;
betw een 1961 and 1970, from 89,000 to tra n sisto riz e d , b a tte ry -o p e rate d television
119,000. The p ro jected annual grow th ra te sets; and tra n sisto riz e d , portable tape r e ­
of 3.3 p ercen t com pounded is only slightly c o rd e rs. Many o th er consum er electro n ic
low er than that for the electro n ics in d u stry products a re in v ario u s stages of develop­
as a whole, and em ploym ent in the con­ m ent. Some m ay be m arketed co m m ercially
su m er electro n ics field w ill account for before 1970 while o th ers m ay not becom e
roughly the sam e pro p o rtio n of em ploym ent co m m ercially feasible until after that date.
in to tal electro n ics m an u factu rin g --11 p e rc e n t--in 1970 as in 1961. (See table 13 and Components. Em ploym ent in the m anufac­
c h a rts 1 and 2.)
tu re of electro n ic com ponents is expected
to grow by 40,000 w o rk ers betw een 1961
9
5
Shipm ents of consum er electro n ic p ro d ­ and 1970, from 280,000 to 320,000. The *
u cts a re expected to ris e from $2.1 billion
88 Interim Revised Projections of U.S. Labor Force. 1965*75
in 1961 to $3.5 billion in 1970 (table 14). (U.S. Department of Labor, BLS Special Labor Force Report 24,
This expectation is based on projections
p. 4.
of (1) in c re a se s in population and re a l 1962),Illustrative Projections of the Number of Households and
59 “
Families: 1960 to 1980,’* Current Population Reports, Series
P-20, No. 90, Series B estimates (U.S. Bureau of the Census),
P. 1.

s* Data for 1961 from FAA Statistical Handbook of Civil
Aviation, 1961 edition (Federal Aviation Agency), p. 35.




25

annual grow th rate of 1.5 p ercen t com ­ and diodes. By elim inating such p a rts and
pounded is the low est grow th ra te projected the connections betw een them , re lia b ility
fo r any m ajor product category, and is is in creased while space and pow er r e ­
m uch low er than that fo r com ponents b e­ quirem ents a re d ecreased . E xam ples of
tw een 1958 and 1961. The categ o ry 1s sh are m ic ro c irc u its a re "sem iconductor in te ­
of to tal electro n ics em ploym ent is expected g rated " and "thin film " c irc u its. Sem i­
to drop from 36 p ercen t in 1961 to 30 p e r­ conductor in teg rated m ic ro c irc u its are
cent in 1970. (See table 13 and c h a rts 1 fab ricated on o r w ithin a sem iconductor
and 2.)
slab by techniques such as oxide m asking,
alloying, diffusing, m etal depositing, and
S everal reaso n s explain why em ploym ent surface shaping. In
in the com ponents categ o ry is expected to thin m etallic film sthin film m ic ro c irc u its,
are evaporated on a
grow le ss rap id ly during the 1960*s than g lass su b strate o r other insulating base to
em ploym ent in the electro n ic end-product function as re s is to rs , cap acito rs, and other
categ o ries, even though the dem and for c irc u it elem en ts.
com ponents re fle c ts the dem and for end
pro d u cts. One reaso n is that shipm ents p er
the recen tn ess
developm
w orker in com ponents m anufacturing is in D espite m in iatu rizatio n , ofengineers ents
m icro
expected to ris e fa s te r than the in d u stry scien tists a re alread y looking tow ard and
the
av erag e. A second is that the rate of com ­ nano m in iatu rizatio n of electro n ic com po­
ponent rep lacem en t ap p ears to be d e c re a s­ n en ts--"n an o " in th is case re fe rrin g to
ing w ith the grow ing use of tra n s is to rs and m easu rem en ts in billionths of an inch.
o th er solid state com ponents and the de­
clining relativ e im portance of electro n
tu b es,40 and th is d ecrease is expected to METHODOLOGY FOR DERIVING
continue.41 A th ird reaso n is found in the
in creasin g v e rsa tility and efficiency of EMPLOYMENT ESTIMATES AND
com ponents, which is expected to low er the PROJECTIONS
p ro p o rtio n which com ponents value re p re ­
To derive
fig
sents of to tal end-equipm ent value. This is 1958 to 1961, the em ploym entvalueu res tofor
the estim ated
of
illu stra te d by the fact that the p ro jected shipm ents and shipm ents p e r em ployee, tal
in
annual grow th ra te of 5.3 p ercen t com ­ constant I960 d o lla rs, w ere firs t developed.
pounded betw een 1961 and 1970 in value of By dividing the shipm ents e stim a te s by the
com ponents shipm ents (table 14) is le ss sh ip m en
ee
than those p ro jected fo r the m ajor end- ploym entts-p er-em p lo y w eree stim a te s, em ­
estim ates
obtained. The
product c ateg o ries.
e stim ates w ere m ade by m ajor product
The decade ahead w ill undoubtedly see categ o ry as w ell as for the in d u stry as a
m arked changes in the n atu re of the com ­ whole.
ponents field. One m ajor tren d has been in
the d irectio n of m icro m in iatu rizatio n or
The shipm ents estim ates w ere based on
m ic ro e le c tro n ics, that is, of ex trem ely data of the E lectro n ic In d u stries A sso cia­
sm all units m easu rab le in m illionths of an tion (EIA ).42 The sh ip m en ts-p er-em p lo y ee
inch, w ith exceedingly low pow er re q u ire ­ estim ates w ere based on data from the
m ents. Although sp u rred chiefly by needs 1958 U.S. C ensus of M anufactures, and for
of the national defense and space p ro g ram s, 1959 to 1961 w ere adjusted to re fle c t e s ti­
m icro m in iatu rizatio n probably w ill find m ated annual in c re a se s in shipm ents p er
in creasin g applications in in d u stria l-c o m ­ em ployee.
m e rc ia l electro n ics and even in consum er
products during the y ears ahead.
The estim ated p ercen t which electro n ics
shipm ents w ere of to tal shipm ents was
M ost m icro m in iatu rized c irc u its involve calculated for each SIC 4 -digit in d u stry
no d isc re te com ponents, such as tra n s is to rs which shipped at le a st $25 m illion in
42 These data were selected for use in this study because of
their comprehensive and detailed nature. They were prepared
by the EIA’s Marketing Services Department, on the basis of
recurrent reports from cooperating respondents and periodic
surveys of electronics manufacturers, supplemented by mate­
rial from the Bureau of the Census and the Business and Defense
Services Administration, both of the U.S. Department of Com­
merce.

40 Projected employment in tubemaking will be lower in 1970
than in 1961 and about the same as in 1958. Between 1958 and
1961, employment in the manufacture of components other than
tubes rose about four times more rapidly than employment in
the manufacture of tubes.
^Shipments value of replacement parts equaled 37 percent
of shipments value for all components in 1958, 29 percent in
1961, and is projected at 27 percent for 1970 (table 14).




26

electro n ic products in 1958. This p ercen t
was applied to to tal em ploym ent in the in ­
d u stry to derive estim ated em ploym ent;
th is step involved the assum ption that em ­
ploym ent in the m anufacture of electro n ic
products m ay be distinguished with re a ­
sonable accu racy from nonelectronic em ­
ploym ent by p ro ratin g to tal em ploym ent
according to proportions of electro n ics and
nonelectronics shipm ents. Value of e le c ­
tro n ic s shipm ents p e r electro n ics em ployee
could then be derived for 1958, by relating
estim ated electro n ics em ploym ent to e le c ­
tro n ic s shipm ents. To develop com parable
shipm ent s-p er-em p lo y ee estim ates for
1959, I960, and 1961, the 1958 shipm entsper-em p lo y ee estim ates w ere adjusted to
take account of changes in shipm ents p er
w o rk er.
The sam e basic m ethod was used to de­
riv e em ploym ent pro jectio n s for 1970, that
is, shipm ents pro jectio n s w ere divided by
shipm ent s-p er-em p lo y ee p ro jectio n s. The
d o llar pro jectio n s w ere stated in te rm s of
the sam e I960 p rice lev el as w ere the 195861 d o llar e stim a te s.
The ship m en ts-p er-em p lo y ee pro jectio n s
w ere based on those for 1958 to 1961 and
w ere adjusted to take into account p ro jected
changes to 1970 in shipm ents p e r w o rk er.
The shipm ents pro jectio n s w ere derived




through pro jectio n s and c o rre la tio n s of
various h isto ric a l se rie s, d escrib ed in
detail in appendix A.
The pro jectio n s should be view ed only as
indications of g en eral m agnitudes and di­
rectio n s of change. Some of the h isto ric a l
se rie s upon which they a re based do not
extend back m any y e a rs, and even if they
did, m ight be an u n certain guide to the
future in this rap id ly changing field. The
pro jectio n s probably would be different if
the m ajor assum ptions used in deriving
them had been different.
These m ajor assum ptions concerning the
rem ain d er of the 1960*s a re the following:
(1) The in stitu tio n s and fundam ental eco­
nom ic stru c tu re of the United States w ill
not change significantly; (2) high lev els of
econom ic activ ity and em ploym ent w ill be
m aintained though tem p o rary re c e ssio n s
m ay occur; (3) scientific and technological
advances w ill continue at a rapid ra te , in ­
cluding the developm ent of new and im proved
weapons and space sy stem s; (4) n eith er w ar
nor substantial d isarm am en t w ill o ccu r,
and the N ation w ill continue to striv e for a
defense capability sufficient to d eter po­
ten tial a g g re sso rs; and (5) the achievem ent
of a m anned lunar expedition before 1970
w ill continue as a national goal and as the
m ajor elem ent in our civ ilian space
p ro g ram .

27

Table 13. Employment in electronics manufacturing, by product category, estimates for
1958-61 and projections for 1970

Product category
A ll c a te g o rie s................
M ilitary and space products.
In d u stria l and commercial
p ro d u cts.....................................
Consumer products......................
Components.....................................
1. Tubes.................................
2. Other than tu b es.........
1. O riginal equipm ent...
2. Replacement p a r ts . . . .

1958 1959
609.8 689.4
245.6 256.2
86.3 96.8
72.7 89.9
205.2 246.5
79.6 89.2
125.6 157.3
129.5 168.1
75.7 78.4

1960
734.1
270.7
109.4
93.3
260.7
87.6
173.1
183.8
76.9

1961
777.7
283.0
126.0
88.7
280.0
88.8
191.2
198.6
81.4

Percent of
to ta l
employment

Percent change per
annum compounded

Employment (thousands)
1970
1,084.5
458.7
186.5
119.2
319.9
80.0
239.9
232.5
87.4

1958-61
8.4
4.8
13.4
6.8
10.9
3.7
15.0
15.3
2.4

1961-70
3.8
5.5
4.5
3.3
1.5
-1.2
2.5
1.8
.8

1958
100.0
40.3
14.2
11.9
33.7
13.1
20.6
21.2
12.4

Note: Because of rounding, sums of individual items may not equal to ta ls .
Source: Estim ates and projections developed by U.S. Department of Labor, Bureau of Labor S ta tis tic s .




1961
100.0
36.4
16.2
11.4
36.0
11.4
24.6
25.5
10.5

1970
100.0
42.3
17.2
11.0
29.5
7.4
22.1
21.4
8.1

Chart 1. Employment In Electronics Manufacturing
Estimates 1958-61, and Projections 1970

Thousands of Employees

1100

Consumer Products

1000

Industrial and Commercial Products

1
)

Components

900

Thousands of Employees
1100
1000

"
900

M

M ilitary and Space Products

800
700
600

1

500
400

'
- 300
- 200
- 100
0

1958

1959

1960

1970

1961

Chart 2. Employment Increases in Electronics Manufacturing
Estimates 1958-61, and Projections 1961-70
Percent Employment Increase Per Annum

Percent Employment Increase Per Annum

Compounded, 1958-61

Compounded, 1961-70

14

12

10

8




6

4

2

0

Military and Space
Products
Industrial and Commercial
Products
TOTAL ELECTRONICS
EMPLOYMENT
Consumer Products

Components

29

Table 14. Value of electronics shipments in constant 1960 dollars, by product category, estimates for
1958-61 and projections for 1970

Product category

Shipments (in b illio n s of 1960 d o llars)
1959

1960

1961

$8.18 $9.16
4.43 4.72
1.38 1.59
1.55 1.97
2.21 2.77
1.39 1.89
.88
.82

$9.95
5.10
1.85
2.10
3.05
2.15
.90

$10.75
5.49
2.20
2.06
3.44
2.44
1.00

1958
A ll e lectro n ics sh ip ­
ments2 .............................
M ilitary and space products..
In d u stria l and com m ercial...
products.......................................
Consumer products........................
Components.......................................
O riginal equipment2. . . . . .
Replacement p a rts ..............
o

Percent change per
annum compounded

1970

1958-61

$19.80
10.70
4.10
3.50
5.49
3.99
1.50

3 11.3
7.4
16.8
9.9
15.9
20.6
6.8

Percent of a ll
shipments

1961-70

1958

1961

1970

3 6.8
7.7
7.2
6.0
5.3
5.6
4.6

100.0
54.2
16.9
18.9
(2 )
10.0

100.0
51.1
20.5
19.2
(2 )
9.3

100.0
54.0
20.7
17.7
(2)
7.6

—

—

- -

1 Shipment estim ates fo r 1958-61 are in constant 1960 d o llars and to th a t extent d iffe r from the cu rren t-d o llar e s t i ­
mates in ta b le s 6, 8, 11, and 12 .
2 The value of components used in o rig in al equipment is not included in to ta l shipment value in order to avoid d u p li­
catio n , since original-equipm ent components are already counted in the value of the end equipment of which they are a
p a rt. See also footnote 3.
3 These per annum ra te s of change were computed from to ta l shipments estim ates which include components used as o rig ­
in a l equipment, and not from the unduplicated to ta l shipments estim ates shown in the ta b le . This was done to permit a
more v alid comparison w ith the per annum growth ra te s shown fo r employment in tab le 13.
Note: Because of rounding, sums of individual items may not equal to ta ls .
Source: Estim ates and projections developed by U.S. Department of Labor, Bureau of Labor S ta tis tic s .




CHAPTER 4. OCCUPATIONAL TRENDS AND
OUTLOOK IN ELECTRONICS MANUFACTURING
The ratio of nonproduction to production
w o rk ers v a rie s w idely betw een m ilita ry space and in d u stria l-c o m m e rc ial e le c ­
tro n ics on the one hand (52 to 48 in 1961)
and the consum er products and com ponents
fields on the o th er (each w ith a ratio of
27 to 73 in 1961--ta b le 15). M anufacturing
p ro c e sse s in m ilita ry and space electro n ics,
and to a le s s e r extent in in d u stria l and
co m m ercial e lectro n ics, involve a g reat
deal of R&D w ork and low -volum e p roduc­
tion of custom -m ade end pro d u cts. In the
consum er products and com ponents field s,
conversely, m anufacturing p ro c e sse s tend
to be of an assem b ly line, m ass production
n atu re.
The tren d tow ard grow th in the relativ e
size of the nonproduction w ork force is due
to se v e ra l fa c to rs. One is the grow ing im ­
portance of R&D w ork and low -volum e p ro ­
duction of item s m ade to o rd e r on a co n tract
b asis, thus in creasin g the need for engi­
n e e rs and other tech n ical p erso n n el and
d ecreasin g the need for sem isk illed and
unskilled production w o rk ers. This facto r
is esp ecially significant in m ilita ry and
space e lectro n ics, and to a sm aller degree
in the in d u stria l and co m m ercial field, but
the R&D content is high and in creasin g also
in other pro d u cts, such as sem iconductors
and sp ecial-p u rp o se tubes. A nother facto r
is the continual introduction of technological
changes, such as m echanization in assem b ly
line w ork, which tends to d ecrease the num ­
b e r of production w o rk ers needed to produce

NONPRODUCTION AND PRODUCTION
WORKERS
Two outstanding featu res of the occupa­
tional stru c tu re in electro n ics m anufactur­
ing a re (1) a tren d tow ard in c re a se s in the
relativ e size of the nonproduction w ork
fo rce, and (2) the existence of m arked dif­
feren ces in occupational d istrib u tio n s among
the in d u stry 1s m ajor product categ o ries.
N onproduction w o rk e rs--e n g in e e rs and
o ther technical w o rk ers, ad m in istrativ e
and executive p ersonnel, and c le ric a l and
stenographic e m p lo y e e s--a re expected to
account for n early half (48 percent) of to tal
electro n ics m anufacturing em ploym ent by
1970 (table 15). They re p resen ted an e s ti­
m ated 40 p ercen t of such em ploym ent in
1961, 38 p ercen t in 1958, and only 19 p e r­
cent in 1950.48 44 G row th during the 1960*s
in the relativ e size of the nonproduction
w ork force is p ro jected for each of the
electro n ic product categ o ries, and is ex­
pected to be esp ecially rapid in the c a te ­
g o ries of m ilita ry -sp a c e and in d u strialco m m ercial products and of electro n
tu b e s.*
45
4
4s The 1950 percentage is based on different data from those
in table 15 and is not precisely comparable, but it helps to pro­
vide a rough order of magnitude for the change since 1950, The
1950 estimate is based on information in “ Expansion in Elec­
tronics Employment,“ Monthly Labor Review, February 1952,
p. 151, and “ The Effect of the Defense Program on Employment
Outlook in Electronics Manufacturing,** Occupational Outlook
Handbook, Supplement No. 15, May 1951.
44For U.S. manufacturing as a whole, in comparison, nonpro­
duction workers represented a smaller and less rapidly expand­
ing part of the work force: 26 percent in 1961, 25 percent in
1958, and 18 percent in 1950. (Data for 1961 from Employment
and Earnings, June 1962; data for 1958 and 1950 from Employment and Earnings Statistics for the United States, 1909-60
<BLS Bulletin 1312,1961).
45 The methodology used to derive the estimates and projec­
tions in table 15 is described in detail in appendix A. The esti­
mates were developed from statistics of nonproduction and
production workers published monthly by the Bureau of Labor
Statistics in its Employment and Earnings series. Since these
figures are published by SIC group, they had to be converted to
the product categories of table 15; this was done by means of
procedures described in appendix A. Because of the form in
which the BLS data are available, estimates for the militaryspace and industrial-commercial product categories could be
developed only as a combined group.




The projections for 1970 involved the assumption that changes
in ratios of nonproduction to production workers would continue,
but not so rapidly as between 1958 and 1961. This assumption
was based on analysis of the many variables expected to affect
the industry and its employment composition during the remain­
ing years of the 1960’s. The projections were calculated by using
approximately half the per annum rates of change in nonproduc­
tion-production worker proportions between 1958 and 1961, with
slight variations from product category to product category as
deemed reasonable in the light of special influences expected to
affect employment in that category. The resultant proportions for
1970 were applied to the employment forecasts already made for
that year (see table 13) to derive projected numbers of non­
production and production workers. Alternative projections of
nonproduction-production worker ratios were also made, and
appear in appendix A.
31

a given output. This tren d tow ard autom atic
o peration is esp ecially significant w here
m ass production techniques a re the ru le,
as in the consum er products and com po­
nents field s. F inally, the grow th of re c o rd ­
keeping and com m unication req u irem en ts
in m odern b u sin ess has caused an in c re a se
in num bers of c le ric a l and other office
w o rk ers, despite the introduction and ex­
panded use of im proved office equipm ent,
esp ecially fo r data p ro cessin g .
The num ber of engineers and sc ie n tists
in electro n ics m anufacturing was estim ated
at 128,000 in I9 60,46 n e a rly 10 tim es as
m any as the estim ated 13,000 in m id1951.47 The in c re a se in these w o rk ers was
considerably g re a te r than the threefold
grow th in to tal electro n ics m anufacturing
em ploym ent over approxim ately the sam e
p erio d .48 By I960, engineers and scien tists
w ere estim ated to re p re se n t roughly 17
p ercen t of to tal electro n ics em ploym ent.49*
Many production ope ratio n s in electro n ics
m anufacturing have been m echanized in
whole o r in p a rt in recen t y ears, and m any
o th er operations a re expected to be m ech­
anized in the y ears ahead. The following
d iscu ssio n d escrib es som e of these inno­
vations, sep arately for end-equipm ent and
com ponents m anufacturing.

paper and phenolic p lastic, bonded to cop­
p er foil. A w iring p a tte rn o r c irc u it is
printed on the copper foil. Com ponents for
the c irc u it are th read ed through holes in
the board so as to m ake contact w ith the
copper. Soldering of these contacts can be
done in one operation. "B ecause the board
is re g u la r in shape and puts all the con­
ductors into one plane. . . [m an u factu rers
in the 1950*s w ere] provided fo r the firs t
tim e with the m eans of handling. . . p ro ­
duction in autom atic m ach in ery .,,so
The p rin te d -c irc u it board was introduced
in plants m anufacturing larg e quantities of
standardized item s, such as rad io s and
telev isio n re c e iv e rs. By the m id -1950*s,
m ost m an u factu rers of consum er equipm ent
w ere using c irc u it boards in th e ir p roducts.
By the late 1950's, c irc u it boards w ere
standard equipm ent in com puters and m any
other in d u stria l and m ilita ry end p roducts.
Since the introduction of th ese b o ard s,
num erous production im provem ents have
been introduced in such p ro c e sse s as the
in sertio n of com ponents into the b oards and
the testin g of com pleted c irc u its and equip­
m ent.
Many o th er innovations which in creased
productivity w ere introduced in end-equip­
m ent m anufacturing during the 1950* s and the
e a rly 1960's. Im provem ents w ere m ade in
d ip -so ld erin g and plating techniques. New
Mechanization in End-Equipment Manufac­ soldering, w elding, and fastening devices
turing. No single developm ent so m odified w ere developed to speed assem b ly , even
the production of electro n ic end equipm ent w here m in iatu rized c irc u itry was used.
during the 1950*s as the introduction of the M iniaturization of com ponents and c irc u its
p rin te d -c irc u it board, which elim inated the reduced storage req u irem en ts and in creased
m ass of w iring found in electronic products m ate rials-h an d lin g efficiency. New types of
m anufactured conventionally. The prin ted - m ovable conveyor sy stem s w ere introduced.
c irc u it board co n sists of a lam inate of New m achines w ere developed to tra n s fe r
p a rtly assem b led units from one assem b ly
line to another. V arious devices w ere m ade
* Electronic Industries Association, Electronic Industries
1962 Yearbook, p. 67. This estimate is based on a 1960 yearend to feed com ponents m ore conveniently to
survey by the EIA Marketing Services Department in cooperation a sse m b le rs. Im proved types of autom atic
with the Department of Defense.
te st equipm ent w ere engineered. M achine
47 Mid-1951 estimate from “ Expansion in Electronics Em­ tools used in 1958 w ere, on the av erage, 40
ployment,’* Monthly Labor Review, February 1952, p. 154. As
with the total employment figures in this report, both the 1960 p ercen t m ore productive than those of 10
and 1951 figures exclude engineers and scientists working for y ears b e fo re .51*
the Federal Government, universities, and nonprofit research
centers (estimated at 22,000 by the EIA’s 1960 survey).
G re a te r efficiency was achieved by im ­
4®From an estimated 244,000 workers in 1950 (“ Expansion in provem ents in plant layout and fa c ilitie s.
Electronics Employment,” Monthly Labor Review, February P ro d u c e rs built o r rem odeled plants so
1952, p. 151) to 734,000 in 1960 (table 13).
49 Calculated by relating the EIA survey figure of 128,000
engineers and scientists to the total employment estimate of
734,000 workers (table 13). This estimate has the weakness of
being derived from two different sources, which may not be
comparable in every respect. Scattered data in the files of the
Bureau of Labor Statistics indicate that the percentage may be
too high, and that 14-15 percent may be a more accurate
estimate.




so “ Automation,” address by Dr. Elmer W. Engstrom, Radio
Corporation of America, at the Centennial Symposium on Modern
Engineering, University of Pennsylvania, Philadelphia, Nov. 11,
1955.
51 George Sideris, “ Production Machinery for the Electronics
Industry,” Electronics, New York, McGraw-Hill, Oct. 24, 1958,
p. 73.
32

v isits w ere m ade in m id -1962 to se v e ra l
electro n ics estab lish m en ts. Although the
plants v isited em ployed n early 5 p ercen t
of all electro n ics m anufacturing w o rk ers
and covered ev ery m ajor electro n ic product
category, they do not provide a re p re se n ta ­
tive sam ple of the in d u stry and the in fo r­
m ation receiv ed from them is illu stra tiv e
only.
This inform ation supports the conclusion
that occupational p attern s v ary according
to the type of electro n ic products m ade.
Illu strativ e occupational d istrib u tio n s shown
in table 16 indicate that, in m id -1962, non­
production w o rk ers w ere in the m ajo rity
(60 p ercen t of the w ork force) in m ilita ry
and space electro n ics m anufacturing53 but
definitely in the m in o rity (30 p ercen t of the
w ork force) in consum er products m anu­
fa c tu rin g .54 The g re a te r em phasis in m ili­
ta ry and space electro n ics on R&D w ork and
low -volum e custom production is evident
from these d istrib u tio n s. In m ilita ry and
space ele c tro n ic s, 33 p ercen t of the w ork
force w ere en g in eers, technicians, and
d raftsm en com pared with 11 p ercen t in the
consum er products fie ld ,55 13 percen t w ere
skilled w o rk ers com pared with 7 p ercen t in
the consum er products field, and 27 p ercen t
w ere sem isk illed and unskilled w o rk ers
com pared w ith 63 p ercen t in consum er
products e lectro n ics.
A ssem b lers w ere the la rg e st m anual
occupational group, rep resen tin g 42 percen t
of all w o rk ers in the consum er products
categ o ry and 16 p ercen t in m ilita ry and
space electro n ics (table 16). A ll asse m b le rs
in the consum er products plants w ere c la s ­
sified as sem isk illed o r unskilled but som e
in the m ilita ry -sp a c e products plants w ere

th at production lin es could be realigned
sw iftly. Lighting sy stem s w ere im proved.
G as, electricity , w ater, and other u tilitie s
w ere placed fo r g re a te r a c c e ssib ility to
production stations. The use of co m p ressed
a ir was introduced "to operate and feed
sm all p a rts to bench and hand tools, to
d riv e assem b ly m achinery, fo r drying,
painting, cleaning, and chem ical tank agi­
ta tio n ." 52

Mechanization in Components Manufactur­
ing. The introduction of the tra n s is to r in

the e a rly 1950*8 re p re se n te d an im portant
developm ent in the com ponents field. Tech­
niques to m ake tra n s is to rs differ co n sid er­
ably from those used to m ake other com ­
ponents. T ra n sisto r m anufacture is a
ch em ical-m etallu rg ical p ro cess; the silicon
and germ anium c ry sta ls used a re specially
"grow n" and assem b led in m eticulously
clean and fully a ir conditioned ro o m s. A l­
though the f irs t tra n s is to rs w ere assem b led
en tirely by hand with a relativ ely high
re je c tio n ra te , im provem ents in techniques
rapidly d ecreased unit labor req u irem en ts
and in creased product re lia b ility and p e r­
form ance. P roduction lines w ere in c re a s­
ingly m echanized, with autom atic equipm ent
fo r such operations as assem bling, sorting,
and testin g .
A dvances in production techniques have
o ccu rred since the early 1950's also in the
m anufacture of com ponents other than
tra n s is to rs . Tube m anufacturing has b e ­
com e highly m echanized in all operations
except m ount assem bly, and im provem ents
in productivity continue. T est equipm ent is
becom ing m ore and m o re autom atic, as
exem plified by a m achine which can te st
1,800 electro n tubes an hour. A com putercontrolled assem b ly line has been in tro ­
duced in an alread y highly autom ated plant
m aking re s is to rs , which has doubled the
p la n t's production ra te to 2,400 units an
hour. Still another developm ent is a m u lti­
station winding m achine which winds in­
du cto rs autom atically. A utom ated p ro c e ­
d u res a re being introduced also in the
re la tiv e ly new field of m ic ro e le c tro n ics.

s* The most comparable proportion shown in table 15 to this
figure is that of 52 percent for the 1961 nonproduction-worker
proportion in military-space and industrial-commercial prod­
ucts combined. This would imply that nonproduction workers
represent a smaller part of the work force in industrial-com­
mercial than in military-space electronics.
54 The comparable proportion shown in table 15, for consumer
products manufacturing in 1961, is 27 percent.
55 Engineers and scientists alone represented 21 percent of the
work force in military and space electronics and 6 percent in
the consumer products category (table 16). Additional data in the
files of the Bureau of Labor Statistics, covering about oneseventh of total estimated electronics employment, show that in
January 1961 engineers and scientists represented approximately
18 percent of electronics employment in the military-space and
industrial-commercial categories combined, 10 percent in com­
ponents manufacturing, and 7 percent in the consumer products
field. (Cf. estimates earlier in the present chapter showing that
for electronics manufacturing as a whole engineers and scien­
tists represent an estimated 14 to 17 percent of all employment.)

OCCUPATIONAL DISTRIBUTIONS AND
TRENDS
To supplem ent and verify the m a te ria l on
occupational tren d s p resen ted above, field
52Ibid., p. 77.




33

logical change on production w o rk ers in
his plant: "The drive tow ard low ering
co sts continues as a strong tre n d in this
plant, in o rd e r to m eet dom estic an dforeign
com petition. Innovations w hich m ake p ro ­
duction p ro c e sse s m ore autom atic occur
frequently. P roduction w o rk ers displaced
by technological change a re not laid off but
tra n s fe rre d to other jobs. In the sh o rt run,
of co u rse, innovations c u rta il the to tal
num ber of production jobs, but the ultim ate
purpose is to in c re a se re lia b ility and low er
co sts and thus sell a g re a te r num ber of
im proved, le s s expensive se ts. To the ex­
tent this purpose is realized , technological
change need not d ecrease em ploym ent on
the production line. P roduction w o rk ers a re
usually the fir s t to be taken on when sales
dem and in c re a se s."
The em ploym ent outlook d iffers consid­
erab ly am ong occupational groups in a
plant m anufacturing sem iconductors, ac ­
cording to an official of that plant: "The
m ost prom ising future job opportunities
h ere and elsew here in sem iconductor e le c ­
tro n ics ex ist for highly skilled equipm ent
m echanics, electro m ech an ical technicians,
and electro n ics tech n ician s.
"E ngineering sh o rtag es m ay fo rce con­
tinued relian ce on som e nondegree engi­
n e e rs, although the recru itin g drive at this
plant is fo r degree en g in eers. N early onefourth of the en g in eers now em ployed h ere
a re nondegree en g in eers, alm o st all of
them being fo rm er production o r la b o ra to ry
technicians who have been upgraded.
"C le ric a l w o rk ers m ay be ad v ersely af­
fected if the plant introduces com puters for
som e of its office w ork, as is being actively
considered. On the other hand, new jobs
should be c reated for keypunch o p e ra to rs
and other co m p u ter-asso ciated w o rk ers.
"Job opportunities for sem isk illed and
unskilled production w o rk ers have been
cu rtailed in th is plant in the p ast two or
th ree y ears by the introduction of autom atic
p ro cessin g and testing equipm ent. This
tren d tow ard m ore autom ation m ay be ex­
pected to continue because it is p a rt of our
answ er to im proved product quality and
re lia b ility and to the low ered co sts needed
to m eet com petition both at hom e and from
abroad. F uture job opportunities for sem i­
skilled and unskilled production w o rk ers
w ill grow only if product dem and expands
sufficiently to m ore than offset anticipated
in c re a se s in output p e r w o rk er."

cla ssifie d as skilled. O ther relativ ely larg e
m anual occupational groups w ere in sp ec­
to rs and te s te rs ; an aly zers and tro u b le­
sh o o ters; fabricating w o rk ers; p ro cessin g
w o rk ers; and m achinists and rep airm en .
A few of the plant officials interview ed
in m id -1962 m ade com m ents and p re d ic ­
tions regarding occupational tre n d s. D is­
cussing the future electro n ics w ork fo rce,
one executive of a plant m aking m ilita ry space and in d u stria l-c o m m e rc ial electro n ic
equipm ent stre sse d the role of m ic ro ­
electro n ics: "The com position of the w ork
force of the future w ill depend heavily on
the future of m icro electro n ics. Although
being developed m ainly for its m ilita ry and
space applications, m icro electro n ics w ill
undoubtedly find application also in other
electro n ic se c to rs. This growing field is
creatin g an acute dem and for technical
people w ith background in solid- state w ork.
It m ay affect production w o rk ers as w ell,
since it should req u ire few er soldering,
w iring, and sim ila r operations and m ore
m icro sco p ic, *white room* w ork. This tren d
tow ard m ore and m ore m in iatu rizatio n m ay
in c re a se the n u m erical im portance of
wom en in assem b ly w ork."
An executive in another estab lish m en t
m anufacturing m ilita ry -sp a c e and indus­
tria l-c o m m e rc ia l electro n ic equipm ent em ­
phasized the esp ecially rapid grow th in
num bers of engineers and other nonpro­
duction w o rk ers: "B etw een 1958 and 1962,
the num ber of engineers in this plant ro se
68 p ercen t, the num ber of technicians 56
p ercen t, d raftsm en 78 p ercen t, and c le ric a l
w o rk ers 58 p ercen t. D uring this p erio d the
to tal num ber of sa la rie d w o rk ers in creased
45 p ercen t while the num ber of hourly
wage w o rk ers fell 10 p ercen t. As a re su lt,
sa la rie d w o rk ers ro se from 41 p ercen t of
to tal em ploym ent in 1958 to 53 p ercen t in
1962. This tren d is due m ainly to the grow th
in co n tracts for m issile and space e le c ­
tro n ic s; these g en erally have a high R&D
content and involve low volum es with ex­
tre m e ly high re lia b ility req u irem en ts.
E ngineers and related w o rk ers w ill find
in creasin g job opportunities at this plant
in the y ears im m ediately ahead. One p o s­
sible exception is in d u strial engineers; the
sm a lle r production runs com m on to m is­
sile and space w ork m ay ad v ersely affect
job opportunities for them ."
An official in consum er products m anu­
facturing evaluated the im pact of techno­



34

y ears (table 18).5 P ro jected declines are
58
6
relativ ely sm all in the m ilita ry -in d u stria l
and consum er products categ o ries, but
ra th e r sh arp (from 50 p ercen t in 1961 to
41 p ercen t in 1970) in the m anufacture of
electro n tubes. Tube m anufacturing, m o re­
over, is the only in d u stry segm ent in which
the absolute num ber of wom en w o rk ers is
expected to fall betw een 1961 and 1970; the
in d u stry 1s anticipated expansion through the
1960!s should re su lt in in c re a se s in the
absolute num ber of wom en w o rk ers in all
other product c ateg o ries.

WOMEN WORKERS
B ecause of the n u m erical im portance of
wom en w o rk ers in electro n ics m anufactur­
ing, inform ation concerning them was co l­
lected during the field v isits m ade in m id1962 and m uch of it is included in table 17.
Although the data a re frag m en tary , they
point up the relativ ely larg e proportions
of wom en among production w o rk ers and
the relativ ely sm all proportions in non­
production occupations except c le ric a l and
stenographic. Women outnum ber m en in
som e types of production jobs, esp ecially
in m ass production operations such as those
in co n su m er-p ro d u ct and sem iconductor
m anufacturing.
In 1961, women w o rk ers rep re se n te d an
estim ated 41 p ercen t of total em ploym ent
in electro n ics m anufacturing (table 18).®
F o r U.S. m anufacturing as a whole, in c o m ­
p ariso n , wom en w o rk ers re p re se n te d about
26 p ercen t of all w o rk ers in that y e a r.57
They re p re se n te d a low er proportion (30
p ercen t) in the m ilita ry -sp a c e and indus­
tria l-c o m m e rc ia l categ o ry in 1961 and
higher p roportions in the consum er prodcuts (49 percent) and com ponents (56 p e r­
cent) categ o ries. These differences a re
asso ciated chiefly with differences in p ro ­
portions of production w o rk ers. Women
a re em ployed m ainly as production w o rk ers
and th erefo re a re m ore num erous w here
production w o rk ers a re m ore num erous.
B ecause the p ro p o rtio n of production
w o rk ers to to tal em ploym ent in electro n ics
m anufacturing is expected to decline b e­
tw een 1961 and 1970 (table 15), the p ro p o r­
tion of women w o rk ers to to tal em ploym ent
is also expected to decline betw een those
56 The estimates for 1958-61 in table 18 were developed from
statistics on women workers published quarterly by the Bureau
of Labor Statistics in its Employment and Earnings series.
Since these figures are published by SIC group, they had to be
converted to the product categories of table 18. The methodology
for doing this, and for developing the projections to 1970, is
similar to that used to derive the data in table 15 and is described
in appendix A, Because of the form in which the BLS data are
available, estimates for the military-space and industrialcommercial product categories could be developed only as a
combined group.
5T Employment and Earnings, August 1962, pp. iv and viii.




In only one product categ o ry shown in
table 18--com ponents other than tu b e s --is
the pro p o rtio n of women w o rk ers expected
to in c re a se during the 1960*s even though,
in th is categ o ry as in the o th ers, the p ro ­
portion of production w o rk ers is expected
to continue to decline. One reaso n for th is
difference in p ro jectio n s is that wom en are
em ployed not only as production w o rk ers
but also in c le ric a l and o th er office jobs,
and the p ro jected tren d in the p roportion of
office jobs is upw ard. A second reaso n lie s
in the m arked tren d tow ard m icro m in ia­
tu rizatio n of sem iconductors and oth er com ­
ponents, which m ay give wom en an advantage
over m en in som e types of assem b ly and
other production-line w ork and as a re su lt
m ay in crease the pro p o rtio n of wom en
production w o rk ers. This tren d m ay be
im portant also in the m ilita ry and indus­
tria l field because of the in creasin g use in
that field of m icro m in iatu rized com ponents
and c irc u its. This m ay help to explain why
in that product categ o ry the p ro jected drop
in proportionate em ploym ent is expected to
be le ss for w om en w o rk ers than fo r p ro ­
duction w o rk ers.
58The projected decrease is from 41 percent to 39 percent.
In 1950, women workers were estimated at 50 percent of total
electronics employment. The 1950 figure is not precisely com­
parable with those in table 18, but it provides a rough indication
of the extent of change. (1950 estimate developed by U.S. Depart­
ment of Labor, Bureau of Labor Statistics, on the basis of mate­
rial from “ Expansion in Electronics Employment,” Monthly
Labor Review. February 1952, and “ The Effect of the Defense
Program on Employment Outlook in Electronics Manufacturing,”
Occupational Outlook Handbook, Supplement No. 15 (Bureau of
Labor Statistics), May 1951.

35

Table 15. Nonproduction and production workers in electronics manufacturing, by product category,
estimates for 1958-61 and projections for 1970

Product category and
type of worker1

1958
Total e lectro n ics employment....
Nonproduction w orkers.................
Production w orkers........................
M ilitary-space and in d u s tria lcommercial products2..................................
Nonproduction w orkers..............................
Production w orkers....................................
Consumer products...........................................
Nonproduction w orkers..............................
Production w orkers.....................................
Components......................................................
Nonproduction w orkers..............................
Production w orkers.....................................
Tubes.................................................... ................
Nonproduction w orkers..............................
Production w orkers.....................................
Other than tu b es........................ ....................
Nonproduction w orkers..............................
Production w orkers.....................................

Percent of employment in
product category

Number of workers (thousands)
1959

1960

609.8
229.0
380.8
331.9
158.3
173.6
72.7
19.0
53.7
205.2
. 51.7
153.5
79.6
20.5
59.1
125.6
31.1
94.5

689.4
256.1
433.3
353.0
173.0
180.0
89.9
22.7
67.2
246.5
60.4
186.1
89.2
23.7
65.5
157.3
36.7
120.6

734.1
285.3
448.8
380.1
190.4
189.7
93.3
24.5
68.8
260.7
70.4
190.3
87.6
25.1
62.5
173.1
45.2
127.9

1961

1970

1958

777.7 1,084.5 100.0
314.3 516.0 37.6
463.4 568.3 62.4
409.0 645.2 100.0
214.3 386.5 47.7
194.7 258.7 52.3
88.7 119.2 100.0
33.3 26.1
23.8
64.9
85.9 73.9
280.0 319.9 100.0
76.2
96.2 25.2
203.8 223.7 74.8
88.8
80.0 100.0
26.6
30.0 25.8
50.0 74.2
62.2
191.2 239.9 100.0
49.5
66.2 24.8
141.7 173.7 75.2

1959

1960

1961

1970

100.0
37.1
62.9
100.0
49.0
51.0
100.0
25.2
74.8
100.0
24.5
75.5
100.0
26.6
73.4
100.0
23.3
76.7

100.0
38.9
61.1
100.0
50.1
49.9
100.0
26.3
73.7
100.0
27.0
73.0
100.0
28.7
71.3
100.0
26.1
73.9

100.0
40.4
59.6
100.0
52.4
47.6
100.0
26.8
73.2
100.0
27.2
72.8
100.0
30.0
70.0
100.0
25.9
74.1

100.0
47.6
52.4
100.0
59.9
40.1
100.0
27.9
72.1
100.0
30.1
69.9
100.0
37.5
62.5
100.0
27.6
72.4

1 "Production and re la te d workers" (referred to in th is report simply as production w orkers), as defined by the
Bureau of Labor S ta tis tic s include "working foremen and a l l nonsupervisory workers (including leadmen and train ees)
engaged in fa b ric a tin g , processing, assembling, inspection, receiving, storage, handling, packing, warehousing, shipping,
maintenance, re p a ir, ja n ito ria l and watchman serv ices, product development, a u x ilia ry production fo r plant*s own use
(e.g.pow er p la n t), and recordkeeping and other services closely associated w ith the above production operations."
^ Because of the form in which the source data were av ailab le, estim ates could not be developed fo r the m ilitary-space
category sep arately from the industrial-com m ercial category.
Note: Because of rounding, sums of individual items may not equal to ta ls .
Source: Estim ates and projections developed by U.S*. Department of Labor, Bureau of Labor S ta tis tic s .



Table 16.

Illustrative occupational distributions in electronics manufacturing,
military-space and consumer products, mid-1962
Military and
space products

Occupation

Consumer
products

Percent
Total employment.........................................
Nonproduction workers..........................................
Engineers and other technical workers.......................
Engineers1 .................................................
Technicians................................................
Draftsmen..................................................
Administrative and executive2............. ..................
Clerical and stenographic....................................
Production workers.............................................
Skilled............... ......................................
Assemblers.................................................
Analyzers and troubleshooters.............................
Processing workers3 ............... ........................
Machinists and repairmen...................................
Sheet-metal workers........................................
Tool and die makers........................................
Welders....................................................
Carpenters.................................................
Electricians...............................................
Plumbers and pipefitters...................................
Other skilled workers4 .....................................
Semiskilled and unskilled......... ..........................
Assemblers.................................................
Inspectors and testers.....................................
Fabricating workers5 .................................... •••
Processing workers6 ........................................
Shipping and receiving workers.............................
Material handlers, truckdrivers, and laborers.............
Custodial and janitorial workers..........................
Other semiskilled and unskilled workers7 ...... ............

100.0
60.0
33.4
21.0
7.7
4.7
13.2
13.4
40.0
12.6
5.2
1.1
.2
3.7
.8
.3
.6
.2
.2
.2
.1
27.4
11.0
3.1
3.7
3.1
1.3

.3
1.5

100.0
30.0
11.0
6.0
3.0
2.0
12.0
7.0
70.0
6.8

—
—

5.1

.3
-.4
.1
.2
.2
.1
.4
63.2
42.0
14.4
1.2
1.2
1.2

2.2
.4
3.4
.6
1 Includes such occupations as e le c tric a l engineer, electro n ics engineer, design engi­
neer, in d u stria l engineer, mechanical engineer, value engineer, te s t and q u ality control
engineer, and chemical engineer. The occupational d istrib u tio n for m ilita ry and space
products also includes a small number of s c ie n tis ts , such as p h y sic ists, chem ists, m ath­
em atician s, and m e ta llu rg ists.
2 Includes such employees as managers and supervisors, foremen, salesmen, and personnel
in purchasing, in d u stria l re la tio n s, accounting, marketing, and advertising.
3 Includes such occupations as sk ille d e le c tro p la ter and etcher.
4 Includes such occupations as statio n ary engineer, m illw right, blacksm ith, and sk ille d
machine to o l operator.
5 Includes such occupations as punch press, d r i l l p ress, power brake, shear, and saw
operator, grinder, and buffer.
6 Includes such occupations as spray and dip p a in te r, oven tender, s ilk screen operator,
p latin g machine loader, etching machine operator, degreaser, and cabinet retoucher.
7 Includes such occupations as statio n ary b o iler fireman, machine setup man, r e lie f
operator, and cabinet repairman.
Source: U.S. Department of Labor, Bureau of Labor S ta tis tic s ; based on inform ation
obtained through fie ld v is its to electro n ics establishm ents.



37

Table 17. Women workers as percent of all workers in electronics manufacturing
occupations, by major product category, mid-1962

Women as percent of a l l workers in
occupation1
Military-space
and industrialcommercial
products

Occupation

2 48

(3)

15-16
(4 )
8
2
2
60
25-4-5
50-90
20-40
25-30
4 - 2
0- 6

18
0
0
16
2
65
45-60
80
70
(3 )
0
(3 )

0
7-14

Nonproduction workers......................
Engineers.................................
Technicians...............................
Draftsmen.................................
Administrative and executive......... ...
Clerical and stenographic................
Production workers.........................
Assemblers..... ..........................
Inspectors and testers...................
Processing and fabrication...............
Craftsmen........ ........................
Shipping and receiving...................
Materials handlers, including............
truck drivers..... ......................
Custodial and janitorial.................

Semicon­
ductors

2 20-30

All occupations......................

Consumer
products

(3)
0

(?)
(?)
(3 )
(3 )
(*)
(3 )
70-72
90-100
90- 99
65- 90
0
(3)
(3 )
5

1 Two figures given in a column in d icate the range of the percents supplied by respon­
dents; 1 fig u re in d icates e ith e r th a t only 1 respondent supplied a percent figure o r th a t
more than 1 respondent furnished the same percent. Figures have been rounded s lig h tly in
some cases.
2 These fig u res, though based only on illu s tra tiv e data from a few fie ld v is its , are
consistent w ith estim ates based on data published quarterly by the Bureau of Labor S ta­
tis tic s in i t s Employment and Earnings se rie s, which indicate th a t in 1961 women rep re­
sented 30 percent of a ll employees in the m ilitary-space and industrial-com m ercial products
category and 49 percent in the consumer products category. (See tab le 18.)
3 Not av ailab le.
4 Less than 0.5 percent.
Source: U.S. Department of Labor, Bureau of Labor S ta tis tic s ; based on inform ation
obtained through fie ld v is its to electro n ics establishm ents.




38

Table 18. Men and women workers in electronics manufacturing, by product category, estimates for 1958-61
and projections for 1970

Product category and
sex of worker
T otal e lectro n ics employment.............
Men...............................................................
Women.................................................. • • • •
M ilitary-space and in d u stria lcommercial products1 ............................
Men.................. • •. ............. .......................
Women..........................................................
Consumer pro d u cts....................................
Men...............................................................
Women..........................................................
Components....................................................
Men..............................................................
Women..........................................................
Tubes..........................................................
Men..........................................................
Women......................................................
Other than tu b es..................................
Men..........................................................
Women......................................................

Number of workers (thousands)

Percent of employment in
product category
1958 1959 1960 1961 1970

1958

1959

1960

1961

1970

609.8
357.9
251.9

689.4
399.9
289.5

734.1
428.4
305.7

777.7
458.0
319.7

1,084.5
661.6
422.7

100.0
58.7
41.3

100.0
58.0
42.0

100.0
58.4
41.6

100.0
58.9
41.1

100.0
61.0
39.0

331.9
231.0
100.9
72.7
36.9
35.8
205.2
90.0
115.2
79.6
33.9
45.7
125.6
56.1
69.5

353.0
249.2
103.8
89.9
44.7
45.2
246.5
106.0
140.5
89.2
39.3
49.9
157.3
66.7
90.6

380.1
268.7
111.4
93.3
46.6
46.7
260.7
113.1
147.6
87.6
40.7
46.9
173.1
72.4
100.7

409.0
288.3
120.7
88.7
45.7
43.0
280.0
124.0
156.0
88.8
44.1
44.7
191.2
79.9
111.3

645.2
463.3
181.9
119.2
62.6
56.6
319.9
135.7
184.2
80.0
47.0
33.0
239.9
88.7
151.2

100.0
69.6
30.4
100.0
50.8
49.2
100.0
43.9
56.1
100.0
42.6
57.4
100.0
44.7
55.3

100.0
70.6
29.4
100.0
49.7
50.3
100.0
43.0
57.0
100.0
44.1
55.9
100.0
42.4
57.6

100.0
70.7
29.3
100.0
50.0
50.0
100.0
43.4
56.6
100.0
46.4
53.6
100.0
41.8
58.2

100.0
70.5
29.5
100.0
51.5
48.5
100.0
44.3
55.7
100.0
49.7
50.3
100.0
41.8
58.2

100.0
71.8
28.2
100.0
52.5
47.5
100.0
42.4
57.6
100.0
58.7
41.3
100.0
37.0
63.0

1 Because of the form in which the source data were av ailab le, estim ates could not be developed for the m ilitary space category sep arately from the industrial-com m ercial category.
Note: Because of rounding, sums of individual items may not equal to ta ls .
Source: Estim ates and projections developed by U.S. Department of Labor, Bureau of Labor S ta tis tic s




APPENDIX A. METHODOLOGY
engaged p rim a rily in such activ ity .60 Even
in these seven, som e w o rk ers should be
excluded from any count of electro n ics
em ploym ent because they a re engaged in
the m anufacture of products which a re not
ele c tro n ic .61 In in d u strie s only seco n d arily
engaged in electro n ics m anufacturing, the
m ajo rity of w o rk ers g en erally should be
excluded. E lectro n ics m anufacturing em ­
ploym ent is frequently equated w ith the
sum of to tal em ploym ent in the seven SIC
4 -digit in d u strie s p rim a rily engaged in
electro n ics production, but th is sum is only
a m inim al m easu re because m any additional
electro n ics w o rk ers are em ployed in SIC
in d u stries not p rim a rily engaged in e le c ­
tro n ics activity. B etw een 1958 and 1961,
for exam ple, em ploym ent in the seven in ­
d u strie s averaged approxim ately th re e fourths of the to tal electro n ics em ploym ent
estim ated in th is study.62
Since the in d u stry em ploym ent s ta tistic s
c u rre n tly available do not fu rn ish suffi­
ciently accu rate em ploym ent e stim a te s for
purposes of th is study, an altern ativ e m ethod
was adopted which u tilized electro n ic ship­
m ents sta tistic s and converted them into
em ploym ent to tals by dividing into them
sh ip m en ts-p er-em p lo y ee sta tis tic s . This
m ethodology w ill be d escrib ed in two steps:
(A) D erivation of electro n ics shipm ents e s ­
tim ates and pro jectio n s; and (B) d erivation
of electro n ics sh ip m en ts-p er-em p lo y ee e s ­
tim ates and p ro jectio n s.

This appendix d escrib es the p ro ced u res
used to d e v e l o p estim a te s and p rojections
of electro n ics em ploym ent and the d is tri­
bution of these estim ates and projections
betw een nonproduction and production
w o rk ers and betw een m en and wom en
w o rk ers. The e m p l o y m e n t projections
should be view ed only as indications of
g en eral m agnitudes. Some of the h isto ric a l
s e rie s upon which they a re based do not
extend back m any y ears and would not
n e c e ssa rily be too helpful if they did, since
the p ast is an u n certain guide to the future
in the rapidly changing electro n ics field.
The p ro jectio n s, of co u rse, a re heavily
influenced by the m ajor assum ptions used
in deriving them . These assum ptions a re
given in chapter 3 in the section on m eth­
odology.
D escribed firs t in this appendix is the
m ethodology used to derive em ploym ent
estim a te s for the y ears 1958 to 1961 and
p ro jectio n s for 1970. D escribed next are
the p ro ced u res used to d istrib u te these
estim ates and p ro jectio n s betw een non­
production and production w o rk ers and
betw een m en and women w o rk ers.

DERIVATION OF EMPLOYMENT ESTI­
MATES AND PROJECTIONS, BY MAJOR
ELECTRONIC PRODUCT CATEGORY
Although se v e ra l sta tistic a l se rie s on
em ploym ent by in d u stry are a v a ila b le ,89
they do not provide data on electro n ics
em ploym ent accu rate enough for this study.
The data in these se rie s a re classified by
SIC code. As noted in chapter 1, 2 dozen
o r m ore of the m ore than 400 SIC 4 -digit
m anufacturing in d u stries contain som e
electro n ics activity, although only 7 a re

Derivation of Electronics Shipments Esti­
mates and Projections. The shipm ents se ­

rie s used in this study is that published by
the E lectro n ic In d u stries A ssociation, a
m ajor trad e asso ciatio n in the electro n ics
60 The seven are SIC industries 3651, 3652, 3662, 3671, 3672,
3673, and 3679.
61 In 1958, for example, the value of nonelectronic shipments
ranged among the seven industries from 3 to 17 percent of the
value of total industry shipments (U.S. Census of Manufactures:
1958. MC 58(2)-36 D, table 5A (U.S. Bureau of the Census)).
62 Employment data for the seven industries are from the
Employment and Earnings series of the Bureau of Labor Statis­
tics, and employment estimates developed for this study are
shown in table 13. In the Employment and Earnings series, data
for SIC 3651 and 3652 are combined a? are data for SIC 3671,
3672, and 3673: data for SIC 3662 and 3679 are shown separately.

toThe U.S. Department of Labor regularly issues an employ­
ment series prepared by the Bureau of Labor Statistics (Employ­
ment and Earnings series) and another prepared by the Bureau
of Employment Security (Employment and Wages series). Com­
parable series are published regularly by the Bureau of the
Census, U.S. Department of Commerce, singly in its censuses
and surveys of manufactures and jointly with the Social Security
Administration, U.S. Department of Health, Education, and
Welfare, in the County Business Patterns series.




40

m anufacturing in d u stry .* The s e rie s is
65
shown, for the y ears 1950 to 1962, in table
A- l , in cu rren t dollar fig u res and by m ajor
electro n ic product category. These fig u res
w ere converted by the B ureau of L abor
S tatistics, through p ro ced u res d escrib ed in
the next section into "re a l" (that is constant
dollar) values (also shown in table A -l).
The conversion was m ade because em ploy­
m ent estim ates and p ro jectio n s, can be
b e tte r derived from shipm ent values from
which the influence of p rice changes is
elim inated.

space electro n ics shipm ents was that for
F e d e ra l G overnm ent p u rch ases of goods
and se rv ic e s for national defense.64
P ric e d eflato rs selected for in d u strial
and co m m ercial electro n ics shipm ents con­
sisted of BLS w holesale p rice indexes for
e le c tric a l m achinery and equipm ent; in te­
grating and m easuring in stru m en ts; sw itchg ear, sw itchboard, etc. equipm ent; and
radio re c e iv e rs and phonographs. These
indexes w ere converted from th e ir 1947-49
base to a I960 b ase. E ach index was w eighted
by an estim ate of the relativ e im portance,
based on value of shipm ents, of the indus­
Conversion of Shipments from Current to tria l and co m m ercial products for which it
Constant Dollar Estimates. P ric e deflation was co n sid ered ap p ro p riate and the average
would be a sim ple and relativ ely accu rate of the w eighted indexes becam e the p rice
m a tte r if available p rice indexes w ere deflator for in d u stria l-c o m m e rc ial e le c ­
exactly specific to the m ajor electro n ic tro n ics as a whole.
product categ o ries. This is not the case
These p rice d eflato rs could be developed
how ever, and the indexes selected are only
roughly ap p ro p riate. This lim its the accu ­ only for the y ears 1954 to I960. F o r 1950
ra c y of the constant d o llar estim ates shown to 1953, shipm ents data w ere grouped dif­
in table A -l, and although the estim ates a re feren tly from those for la te r y e a rs, and
adequate for the purpose of approxim ating the w holesale p rice indexes cited above
physical shipm ent tren d s, from which to could not be used. F o r 1961 and 1962, the
ex trap o late pro jectio n s to 1970, they a re w holesale p rice indexes w ere not available
not definitive m easu res of p rice changes at the tim e of th is study. P ric e d eflato rs
and cannot provide definitive m easu res of for these y e a rs w ere obtained by ex tra p ­
olating the 1954-60 deflator se rie s back to
to tal output o r output p e r w orker.
1950
1962. B
ail­
C u rren t dollar shipm ent values for each able and forw ard torice tre nased on avI960
evidence on p
d s, the
of the m ajor product categ o ries w ere de­
was
was
flated sep arately , and the resu ltan t con­ index valueby 2 palso used for 1961 and than
in creased
ercen t for 1962--le s s
stant dollar fig u res w ere added together to
obtain constant dollar estim ates for to tal the estim ated annual in crease betw een 1950
and 1961.65
electro n ics shipm ents.
M ilitary and space shipm ents w ere con­
The BLS w holesale p rice index for rad io s,
v erted from c u rre n t to constant d o llars telev isio n sets, and phonographs was se ­
through the use of two p ric e indexes, one lected as the m ost ap p ro p riate deflator for
fo r m ilita ry electro n ics shipm ents and the consum er electro n ics shipm ents. This index
other for civilian space electro n ics ship­ was converted from its 1947-49 base to a
m en ts. The p ric e deflator considered m o st 1960 b ase. No w holesale p rice indexes w ere
ap p ro p riate for m ilita ry electro n ics ship­ available beyond I960, and values for 1961
m ents w as that co n stru cted for in d u strial and 1962 w ere derived by extrapolating the
and co m m ercial electro n ic products (de­ index*s 1950-60 tren d , which was downward,
scrib ed la te r), the underlying assum ption
64Index values were derived from Economic Report of the
being that p rice m ovem ents fo r the two
President, January 1961, tables C -l and
Economic
product categ o ries a re sim ila r. The index Report of the President, January 1962, tablesC-2, and B-2.
B -l and
selected as the m ost ap p ro p riate for civilian
65Except for the 1960 indexes, which were available only as

unpublished data at the time of this study, the BLS Wholesale
Price Indexes used as price deflators came from Bureau of
Labor Statistics publications. For Electrical Machinery and
Equipment, indexes for 1954-56 were from BLS Bulletin 1214,
Wholesale Prices and Price Indexes. 1954-56; for 1957 from
BLS Bulletin 1235, Wholesale Prices and Price Indexes, 1957;
and for 1958 and 1959 from BLS Bulletin 1295, Wholesale Prices
and Price Indexes, 1959. BLS Bulletin 1295 was also the source
for the 1954-59 values for the three other wholesale price
indexes used.

65 This series was selected because of its comprehensive and
detailed nature. It is prepared by the EIA*s Marketing Services
Department, and is based on recurrent reporting from cooperat­
ing respondents and periodic surveys of electronics manufac­
turers, supplemented by material from the Bureau of the Census
and the Business and Defense Services Administration, both of
the U.S. Department of Commerce. Some of the data have since
been slightly revised by the EIA, but too late for incorporation
here.



41

at a constant p er annum ra te . Index num ­
b e rs w ere not available for 1953 and 1954,
and they w ere in terp o lated on the b asis of
values for p r e c e d i n g and subsequent
y e a r s .66*
Since no ap p ro p riate index se rie s was
available for electro n ic com ponents, a
p rice index was co n stru cted . The ratio of
com ponent shipm ents to end-product ship­
m ents in the base y ear I960 was applied
to the constant d o llar value of end-product
shipm ents in 1954, obtained through p ro ­
ced u res d escrib ed e a rlie r, to derive a
constant d o llar value of com ponent ship­
m ents for the sam e y ear. This procedure
assu m ed the sam e ratio of com ponent to
end-product shipm ents in 1954 as in I960.
B ecause of the rap id ly changing product
m ix in com ponent shipm ents, 19 5 4 --the
y ear in which sem iconductors w ere m a r­
keted in sizable volum es for the firs t tim e -w as co n sid ered the e a rlie s t year for which
th is assum ption could be validly m ade, and
no index values for com ponents w ere a t­
tem pted for y ears before 1954.
A p ric e index for 1954 was calculated
by dividing the derived constant dollar
value of com ponents shipm ents in 1954 into
the c u rre n t d o llar value of such shipm ents.
This 1954 index and the I960 b a se -y e a r
index of 100 provided two points betw een
w hich to connect a p rice tren d line. This
tren d line showed a decline of 14.9 p ercen t
betw een the 2 y e a rs. Index values for 1955
to 1959 w ere co n stru cted by interpolating
a constant ra te of decline along this tren d
line; each value re p resen ted a p rice de­
c re a se of 2.34 p ercen t from that for the
preceding y ear. The index value co n stru cted
for 1961 assum ed a d ecrease from I960 of
about tw ice th is average annual ra te of
decline, because of a sharp drop in sem i­
conductor p ric e s during 1961. No p rice
index could be co n stru cted for 1962 because
c u rre n t d o llar shipm ents data w ere not
available at the tim e of the study.
C onstant d ollar estim ates for re p la c e ­
m ent and original-equipm ent com ponent
shipm ents w ere obtained by using the sam e
p ric e d eflato rs as those for com ponent
shipm ents as a whole.
Except for the 1960 index value, which is a preliminary
figure from Monthly Labor Review, November 1961, index values
are from BLS bulletins. Those for 1950-52 and 1955-58 are
from BLS Bulletin 1257, Wholesale Prices and Price Indexes,
1958 and that for 1959 from BLS Bulletin 1295, op. cit.



Projections of Constant Dollar Shipments.

These p ro jectio n s, shown in table A -l, are
for 1970. They w ere developed sep arately
for each m ajor electro n ic product category
and added together to obtain p ro jectio n s for
the en tire in d u stry . They assu m e continu­
ance of the sam e sh ip m en ts-to -in v en to ry
relatio n sh ip s that existed during the y ears
covered by the h isto ric a l se rie s used for
the p ro jectio n s. The following sections de­
scrib e the m ethodology used.

D erivation of P ro jectio n fo r M ilitary and
Space E lectro n ics Shipm ents. Although the
future tren d of m ilita ry space electro n ics
shipm ents is subject to m any u n c e rta in tie s,
pro jectio n s of this m arket, which accounts
for half o r m ore of all electro n ics sales,
are esp ecially v ital for developing p ro je c ­
tions of m anpow er req u irem en ts in e le c ­
tro n ics m anufacturing. The F e d e ra l Gov­
ernm ent is v irtu ally the only cu sto m er for
m ilita ry and space products; its outlays
depend on m any fa c to rs, such as the in te r­
national situation, the state of m ilita ry
technology, and national goals concerning
the exploration and use of space. B asic
assum ptions concerning the co u rse of these
facto rs during the 1960*3 a re cited e a rlie r
in th is appendix.
By 1970, m ilita ry and space e lectro n ics
shipm ents a re expected to ris e to $10.7
billion in constant I960 d o llars (table A -2,
colum n 8). This p ro jectio n w as derived
firs t on a fisc a l y ear b asis (table A -2,
colum n 7) and then tra n sla te d to a calen d ar
y ear b a sis, for co m p arab ility w ith p ro je c ­
tions for other m ajo r electro n ic product
categ o ries. The p ro jectio n was derived by
adding together pro jectio n s of electro n ics
expenditures by both the D epartm ent of
D efense (DOD) and the civilian space agency
(NASA). In te rm s of table A -2, the data in
colum n 7 re p re se n t the sum of the fig u res
in colum n 4 (DOD electro n ics expenditures)
and colum n 6 (NASA electro n ics expendi­
tu re s). DOD and NASA electro n ics expendi­
tu re s a re tre a te d in this study as c o te rm i­
nous w ith m ilita ry and space electro n ic
shipm ents, since these two F e d e ra l agencies
account for v irtu ally all expenditures for
m ilita ry and space e le c tro n ic s. Only re la ­
tively sm all am ounts for space electro n ics
a re accounted fo r by other F e d e ra l agencies,
such as the A tom ic E nergy C om m ission,
the F e d e ra l A viation Agency, and the N a­
tional B ureau of Standards, and by priv ate
e n te rp rise engaged in space com m unications
sy stem s.
42

The assum ption of $53 billion for DOD
m ilita ry expenditures for 1970 is higher
than the estim ate of $49 billion for 1970
which would re su lt from extrapolating a
stra ig h t-lin e tren d fitted to DOD m ilita ry
expenditures for the y ears 1955 to 1963.
The 1955-63 data do not lend them selves
w ell to a straig h t line form ula, in view of
a b reak in the tren d , w ith relativ ely stable
expenditure lev els betw een 1955 and I960
and ra th e r rapid grow th betw een I960 and
1963.

The following p ro ced u res w ere used to
derive the 1970 p rojections in colum ns 4
and 6, table A -2, and to convert the fisc a l
/e a r figures in colum n 7 of that table to the
calen d ar year fig u res in colum n 8.
P ro jectio n of POD electro n ics expendi­
tu re s (colum n 4, table A -2), Two c o rre la ­
tions w ere m ade for th is pro jectio n of $9.0
billion for 1970. F irs t, a le a st sq u ares
straig h t line was fitted to DOD electro n ics
expenditures for the y ears 1955 to 1963
(colum n 4) a n d extrapolated to 1970
(m ethod 1). Second, a straig h t line was
fitted to the p ercen t which DOD electro n ics
expenditures for the y ears 1955 to 1963
(colum n 4) w ere of DOD expenditures for
m ilita ry functions in the sam e y ears (col­
um n 2). This tren d line w as extrapolated
to 1970, and the p ercen t that resu lted was
applied to the 1970 pro jectio n in colum n 2,
derived, as d escrib ed la te r, to develop a
1970 p ro jectio n fo r DOD electro n ics expend­
itu re s (m ethod 2). C oefficients of c o rre la ­
tion w ere +.99 for m ethod 1 and +.96 for
m ethod 2 .67 The p ro jectio n selected for
th is study lay betw een the two p rojections
d escrib ed .

P ro jectio n of NASA electro n ics expendi­
tu re s (colum n 6, table A -2 ). E stim ates and
projections of NASA electro n ics expendi­
tu re s (colum n 6) w ere derived by c alcu lat­
ing them at roughly one-fourth of estim ates
and pro jectio n s fo r NASA to tal expenditures
(colum n 5). This pro p o rtio n w as used b e­
cause it is estim ated that about half of
NASA's total expenditures a re d isb u rsed to
electro n ics m anufacturing estab lish m en ts
for space re se a rc h , developm ent, and p ro ­
cu rem en t,68 and "approxim ately fifty cents
of ev ery d o llar spent for space system s
goes into e le c tro n ic s ." 69 The estim ates of
NASA total expenditures for fisc a l y ears
1958 to 1963 a re based on F e d e ra l budget­
a ry inform ation, and the pro jectio n for 1970
of $6.0 billion, in constant I960 d o llars, is
based on inform ed opinions of governm ent
and in d u stry p e rso n n e l.70

On the b asis of inform ed opinion of in ­
d u stry and governm ent p erso n n el as w ell
as lite ra tu re in the field, it was assum ed
that DOD expenditures for m ilita ry functions
would rise to roughly $53 billion by 1970,
in constant I960 d o llars (colum n 2). To
check on the reaso n ab len ess of th is assu m p ­
tion, the h isto ric a l relatio n sh ip betw een
these expenditures and G ross N ational
P roduct (GNP) w ere analyzed. A le a st
sq u ares tren d line was fitted to the p e r­
cents which DOD expenditures for m ilita ry
functions w ere of GNP, for the y ears 1955
to 1963 (colum n 3), and extrapolated to
1970. The re su lta n t p roportion of 7.0 p e rcen t--w h ich assu m es a continued decline
in the ratio of DOD expenditures for m ili­
ta ry functions to G N P--w hen applied to the
GNP p ro jectio n of $755.1 billion for 1970
(colum n 1), re su lts in an estim ate of DOD
m ilita ry expenditures for 1970 of $53
billion.

C onversion from fisc a l to calen d ar year
b asis (colum ns 7 and 8, table A -2). F o r the
y ears 1955 to 1963, this conversion was
based la rg e ly on estim ates of the E le c ­
tronic In d u stries A ssociation(E IA ) of m ili­
ta ry electro n ic shipm ents, which a re av ail­
able on a calen d ar year b a sis as w ell as
the fisc a l y ear b asis shown in table A -2,
colum n 4. The EIA calen d ar y ear estim ates
w ere deflated to constant I960 d o llars with
the sam e p rice index used to deflate the
68 This estimate is based on the opinions of government and
industry personnel. As earlier noted, electronics employment in
this study relates to manufacturing industries and not to the
Armed Forces, the Federal Government, universities, and non­
profit research centers.
88 “ Electronics in Space,** by James E. Webb, Administrator
of the National Aeronautics and Space Administration, Elec­
tronic Age. New York, autumn 1961, p. 11.
70 For examples of relevant statements to this effect, see
Independent Offices Appropriations for 1963, Hearings before a
Subcommittee of the Committee on Appropriations, U.S. House
of Representatives, 87th Cong., 2d. sess., pt. HI, p. 443; and
“ The $ 50-Billion Space Push,** Missiles and Rockets, Wash­
ington, D.C., Nov. 27,1961, pp. 46-49.

67 These simple correlations were checked with multiple cor­
relations. which resulted in similar coefficients of correlation.
The multiple correlations were (1) DOD electronics expenditures
for 1955 to 1963 (column 4) with DOD military expenditures for
the same years (column 2) and time; and (2) the percents which
DOD electronics expenditures were of DOD military expendi­
tures, for 1955 to 1963, with DOD military expenditures for the
same years (column 2) and time.



43

T hree of the s e rie s showed a close r e la ­
tionship w ith in d u stria l-c o m m e rc ia l ship­
m ents: K ilow att-hours of e le c tric ity , GNP,
and the FRB in d u stria l production index.
C oefficients of c o rre la tio n w ere +.95, + .94,
and +.89, resp ectiv ely . T rend lin es w ere
fitted to the plotted points by v isu al in sp ec­
tion in each of these th ree sc a tte r dia­
g ram s.

EIA fisc a l year e stim a te s, and added, for
the y ears since 1958, to co n stan t-d o llar
NASA electro n ics expenditures. The r e ­
sultant sum s re p re se n t the calendar year
estim a te s of m ilita ry and space electronic
shipm ents shown in table A -2, colum n 8.
The fact that NASA electro n ics expendi­
tu re s w ere on a fisc a l y ear b a sis did not
introduce a larg e e rro r because of th e ir
com paratively sm all size. The 1970 p ro ­
jection on a calen d ar y ear b a sis was de­
riv ed by applying to the I960 calendar
y ear estim ate of m ilita ry and space ele c ­
tronic shipm ents ($5.10 b illio n --ta b le A -2,
colum n 8) the p ro jected in crease of 110
p ercen t in such shipm ents betw een fisc a l
y e a rs I960 and 1970 (colum n 7).

The tren d lin es w ere extrapolated to
1970, and from them in d u stria l-c o m m e rc ial
shipm ents fo r 1970 w ere pro jected , after
adjustm ents to re fle c t expected changes in
h isto ric a l relatio n sh ip s betw een electro n ics
shipm ents and each of the th ree s e rie s .
P ro jectio n s w ere extrapolated to 1970 by
m eans of sc a tte r diag ram s for the y ears
1950 to 1960 betw een GNP and the FRB
index and betw een GNP and kilow att-hours
of e le c tric ity . A tren d line w as v isu ally
fitted to the plotted points in each diagram
and extended to 1970, on the b a sis of the
GNP p ro jectio n for 1970 (alread y av ail­
a b le --se e table A -2). A s a check on the
re su lts of these p ro ced u res, o th er sc a tte r
d iag ram s w ere m ade, for exam ple, betw een
the FRB index and new plant and equipm ent
expenditures.

D erivation of P ro jectio n for In d u strial
and C o m m ercial E lectro n ics Shipm ents.
The 1970 projection for in d u strial and com ­
m e rc ia l electro n ics shipm ents of $4.1 b il­
lion, in constant I960 d o llars, assu m es a
low er ra te of grow th for these shipm ents
during the re s t of the 1960fs than during
the 1950-62 period (table A -l). To develop
the projection, in d u stria l-c o m m e rc ial ship­
m ents in constant I960 d o llars, alread y
available in table A -l, w ere c o rre la te d with
o th er se rie s whose m ovem ent m ight logi­
cally be related to o r asso ciated with th e ir
m ovem ent. The re su lts w ere then m odified
in the light of inform ed judgm ents about
the future co u rse of these relatio n sh ip s.

D erivation of P ro jectio n for C onsum er
E lectro n ics S hipm ents. The 1970p rojection
for consum er electro n ics shipm ents, $3.5
billion in constant I960 d o llars (table A -l),
was m ade in the sam e way as that for
in d u stria l-c o m m e rc ial products, that is, by
co rrelatin g consum er shipm ents with other
se rie s whose m ovem ent m ight logically be
related to o r asso ciated with th e ir m ovem ent
and m odifying the re su lts in the light of in ­
form ed judgm ents concerning the future
co u rse of th ese relatio n sh ip s.

The s e rie s w ith which in d u stria l-c o m ­
m e rc ia l shipm ents w ere c o rre la ted are
am ong those liste d in table A -3 for the
y ears 1950 to I960, the la tte r y ear being
the la te st for which data w ere available at
the tim e of this study. The se rie s which
seem ed logically re la te d to o r asso ciated
w ith in d u stria l-c o m m e rc ial electro n ics
shipm ents and th erefo re c o rre la te d with
them w ere the following: GNP; g ro ss p r i­
vate dom estic investm ent; p ro d u c e rs1 d u r­
able equipm ent; expenditures for new plant
and equipm ent; the F e d e ra l R eserv e B oard
(FRB) index of in d u strial production; and
kilow att-hours of e le c tric ity produced by
o r sold to in d u strial and co m m ercial e s ­
tab lish m en ts.

The se rie s with w hich consum er ship­
m ents w ere c o rre la te d a re am ong those
listed in table A -3. They co n sist of GNP;
p erso n al consum ption expenditures; ex­
penditures for fu rn itu re and household
equipm ent; expenditures for radio and TV
rec e iv e rs, etc.; and num ber of p rim a ry
fam ilies--h u sb an d and wife p re se n t. G raphic
co rrelatio n s in the form of sc a tte r d ia­
g ram s w ere p rep ared , in which data for the
y ears 1950 to I960 for each of the se rie s
w ere plotted against consum er product
shipm ents fo r the sam e y e a rs. Except in
the case of fu rn itu re and household equip­
m ent expenditures, all the sc a tte r diagram s

G raphic c o rre la tio n s in the form of
sc a tte r diag ram s w ere p rep ared , in which
data for the y ears 1950 to I960 for each of
the se rie s w ere plotted against in d u strialco m m ercial shipm ents for the sam e y e a rs.



44

showed a close re la tio n sh ip 71 and tren d
lin es w ere fitted visu ally to the plotted
points.
P ro jectio n s for 1970 w ere next developed
fo r each of the se rie s , with the help of
w hich consum er electronic shipm ents w ere
p ro jected for the sam e y ear. A p ro jectio n
for 1970 was alread y available fo r GNP in
constant I960 d o llars (table A -2). A sc a tte r
diagram was m ade fo r the y ears 1950 to
I960 betw een GNP and one of its com po­
n e n ts--p e rso n a l consum ption expenditures.
The tren d line fitted v isu ally to the plotted
points in the diagram was extended, on the
b a sis of the GNP projection, to 1970. A
p ro jectio n estim ate for p erso n al consum p­
tion expenditures w as then determ ined from
th is extrapolated line. The sam e basic
m ethod was used to derive pro jectio n s for
radio and TV re c e iv e rs, etc., except that
th is se rie s was c o rre la te d with fu rn itu re
and household equipm ent expenditures
ra th e r than with GNP. P ro jectio n s for 1970
for p rim a ry fam ily form ations w ere av ail­
able from a C ensus B ureau so u rc e .72

end-product shipm ents anticipated for 1970,
provided a p ro jectio n for com ponents ship­
m ents for that y ear.
P ro jectio n s of 1970 shipm ents of re p la c e ­
m ent p a rts w ere developed through the use
of sc a tte r d iag ram s co rrelatin g shipm ents
of (1) end products w ith replacem ent p a rts,
and (2) com ponents with rep lacem en t p a rts.
H isto rical shipm ents data for these c o rre ­
lations a re available in constant d o llar
values in table A - l.74 T rend lin es w ere
fitted freehand to these data and ex trap o ­
lated to 1970 on the b asis of p ro jectio n s
for that y ear for end-product and com po­
nents shipm ents, derived through p ro c e ­
dures alread y d escrib ed in th is and im m e­
diately preceding sectio n s. The pro jectio n s
selected for rep lacem en t p a rts re p re se n te d
the m idpoint betw een the extrapolated tren d
lin es, which w ere sim ila r to one another.
The p ro jectio n for 1970 shipm ents of
original-equipm ent com ponents w as derived
as the p ro jected difference betw een ship­
m ents of to tal com ponents and of re p la c e ­
m ent p a rts .

D erivation of P ro jectio n for E lectronic
Com ponents Shipm ents. The p ro jectio n
developed fo r 1970 for electronic com po­
nents shipm ents, in constant I960 d o llars,
is $5.49 billion, of which $1.50 billion is
fo r replacem ent p a rts and the re s t for
original-equipm ent com ponents (table A -1).
The firs t step in developing these p ro je c ­
tions was to com pute the pro p o rtio n which
com ponents w ere to end products in I960.
This proportion (33.7 p e rc e n t--c a lc u la te d
from sta tistic s in table A- l ) is expected to
d ecrease during the 1960*s, and although
any estim ate of the extent of the d ecrease
m ust be tre a te d as only a broad approxim a­
tion, the ratio p ro jected for 1970 fo r this
study re p re se n te d a slight decline, to 30
p e rc e n t.73 This proportion, m ultiplied by

Derivation of Electronics Shipments-PerEmployee E s t i m a t e s and Projections.

S hipm ents-per-em ployee e s t i m a t e s and
p ro jectio n s w ere developed for the study
on the b asis of product shipm ent analyses
which appear in the 1958 C ensus of M anu­
fa c tu re s .75 The 1958 C ensus is the m ost
recen t com plete count of m anufacturing in
the United States; leg islatio n au th o rizes a
census of m anufactures ev ery 5 y e a rs.
Annual surveys a re conducted in the in te rcen sal y ears, but they a re m ade on a
sam ple b asis and do not include the detailed
an aly sis of product shipm ents contained in
the C ensus volum es and needed for the
m ethodology used h e re .
The derivation of sh ip m e n ts-p e r-e m ­
ployee fig u res w as m ade on the b asis of
the 20 SIC 4-digit in d u strie s which rep o rted
fo r 1958 at le a st $25 m illion in electro n ics
shipm ents each. T hese 20 in d u stries, are
believed to account fo r n e a rly a ll electronic s

71 Coefficients of correlation for the relationship between
consumer electronic shipments and the other series were as
follows: With personal consumption expenditures—+.89; with
expenditures for radio and TV receivers and with number of
primary families—+.85 in each case; and with GNP—+.83.
77 U.S. Bureau of the Census, Current Population Reports,
Population Characteristics, Series P-20, No. 90, released Dec.
29,1958, table 5, Series B projections.
w One major reason behind the projection of a decreasing
ratio ,of components to end products is that the replacement
rate of components appears to be trending downward with the
growing use of solid state components and the decreasing rela­
tive importance of electron tubes. Another is the increasing
versatility and efficiency of components, which has tended to
lower the proportion which their value represents of total
end-equipment value.




74Coefficients of correlation were +.95 for the relationship
between end products and replacement parts and +.91 for the
relationship between components and replacement parts.
75 The Census statistics used appear in U.S. Bureau of the
Census, U.S. Census of Manufactures: 1958, Vol. II, Industry
Statistics, tables 5A, 5B, 6A, and 8. In the case of one industry—
SIC 3571—the Census table comparable to table 6A in other
industries was numbered table 6, and, in the absence of any
table 8, table 4 was used for employment totals.
45

shipm ents. In seven of these in d u stries,
electro n ics shipm ents in 1958 rep resen ted
half o r m ore of the value of the industry* s
to tal shipm ents; betw een 1958 and 1961, as
noted e a rlie r in this appendix, em ploym ent
in these seven in d u stries averaged about
th re e -fo u rth s of the total electro n ics em ­
ploym ent estim ated in this study.
SIC 4-digit industries with at least $25 million in electronics
shipments each, and with electronics shipments representing
half or more of the value of total shipments (1958 data)
Industry
Number
Industry title
3651 • . • .Radio and television receiving sets, except com­
munication types
3652 . . . .Phonograph records1
3662 • • • .Radio and television transmitting, signaling, and
detection equipment and apparatus
3671 . . . .Radio and television receiving type electron tubes,
except cathode ray
3672 • • • .Cathode ray picture tubes
3673 • • • .Transmitting, industrial, and special purpose elec­
tron tubes
3679 • • • .Electronic components and accessories, not else­
where classified
1 Phonograph records are not uniformly considered to be an
electronic product. They are treated as electronic in this report
chiefly because the shipments estimates of the report are based
upon figures of the Electronic Industries Association which
include phonograph records.
SIC 4-digit industries with at least $25 million in electronics
shipments each, and with electronics shipments representing
less than half of the value of total shipments (1958 data)
Industry
Number
Industry title
19251. . . .Guided missiles, complete
3571 • • • .Computing and accounting machines, including cash
registers
3611 • • • .Electric measuring instruments and test equipment
3622 • • • .Industrial controls
3661 • • • .Telephone and telegraph apparatus
3693 . . . .RadiographicX-ray, fluoroscopic X-ray, therapeutic
X-ray, and other X-ray apparatus and tubes
3721 • • • .Aircraft
3722 • . • .Aircraft engines and engine parts
3729 . • • .Aircraft parts and auxiliary equipment, not else­
where classified
3811 • • • .Engineering, laboratory, and scientific and research
instruments and associated equipment
3821 • . • .Mechanical measuring and controlling instruments,
except automatic temperature controls
3842 • • • .Orthopedic, prosthetic, and surgical appliances and
supplies
3931 . , . .Musical instruments and parts
i This industry is a special Census grouping, and is part of
SIC industry number 1929--Ammunition, not elsewhere classified.

The firs t procedure was to determ ine
the p ro p o rtio n of to tal shipm ents which was
electro n ic in each of the 20 SIC 4 -digit



46

in d u strie s. Shipm ents of each in d u stry are
divided in the C ensus s ta tistic s into th ree
groups: (1) P ro d u cts c la ssifie d in that in ­
d u stry and th erefo re p rim a ry to it;76 (2)
products c lassified in other in d u stries (sec­
ondary products); and (3) m iscellaneous
receip ts for co n tract and com m issio n work,
sales of products bought and re so ld without
fu rth e r m anufacture, etc.
The p rim a ry products category, quanti­
tativ ely the la rg e st, w as the m ost read ily
allocable as betw een electro n ic and non­
electro n ic item s since the g re a te st am ount
of C ensus d e ta il--to a 7 -digit le v e l--is
provided for it. The chief m ethodological
problem was that the p rim a ry product ship­
m ents fo r which detail is given a re those
of all m anufacturing estab lish m en ts, which
m ay include som e estab lish m en ts not c la s ­
sified in the 4 -digit SIC in d u stry being
analyzed. It w as th erefo re assum ed, after
determ ining the p ercen t of all p rim a ry
products which was electro n ic, that the
sam e pro p o rtio n applied to the p rim a ry
products of the 4 -digit SIC in d u stry being
analyzed. This assum ption was g en erally
fa irly accu rate since m ost of the in d u stries
being analyzed accounted for 80 p ercen t or
m ore of all the products shipped in the
United States which w ere p rim a ry to th em .77*
F u rth e rm o re , in the case of the seven
4 -digit in d u stries p rim a rily engaged in
electro n ics m anufacturing and accounting
for m ost electro n ics em ploym ent, this a s ­
sum ption was not req u ired since all th e ir
p rim a ry products w ere known to be e lec­
tro n ic and no allocation pro ced u re was
n e c e ssa ry .
Although the secondary products category
g en erally could be allocated betw een e lec­
tronic and nonelectronic, som etim es this
could be done only in an approxim ate way.
E stim ating w as often req u ired for various
reaso n s, such as the existence of gaps in
C ensus data to avoid disclosing inform ation
for individual com panies. The m iscellaneous
receip ts category, which was quantitatively
76According to the Bureau of the Census, U.S. Census of
Manufactures: 1958, Vol. II, “ The group of products assigned
to an industry is said to be ’primary* to that industry.. • .an
establishment is classified in a particular industry if its pro­
duction of the primary products of that industry exceeds in
value its production of products of any other single industry.**
77In more technical language, the “ coverage ratio** of these
industries was 80 percent or more. According to the Bureau of
the Census, ibid., a coverage ratio is “ theproportion of primary
products shipped by the industry to total shipments of such
products by all manufacturing industries.**

quite sm all relativ e to the other two c a te ­
g o rie s, could not be allocated betw een e le c ­
tro n ic and nonelectronic activ ities because
of insufficient C ensus detail.

m ajor product category. T hese estim ated
shipm ent in c re a se s w ere different for each
category, reflectin g v ariatio n s in such
things as production p ro c e sse s, technologi­
cal developm ents, and R&D activ ity . The
in c re a se s for the product categ o ries w ere
so calculated, how ever, that th e ir average,
w eighted according to the estim ated value
of shipm ents of these categ o ries for the
y ears 1959-61 and 1970, approxim ated a
p er annum in c re a se of 2.9 p ercen t com ­
pounded. This is equal to the estim ated
rate of annual in c re a se over the 1947-60
period in m anufacturing output p e r m an­
h o u r,79 and assu m es no changes in hours
w orked p er em ployee.

A fter determ ining by the above p ro c e ­
d u res the proportion of to tal shipm ents
w hich was electronic in each of the 20 SIC
4 - digit in d u strie s,78 the next step w as to
m ultiply this proportion by to tal em ploy­
m ent in the in dustry. The resu ltan t product
re p re se n te d our estim ate of the num ber of
w o rk ers in that in d u stry engaged in e le c ­
tro n ic s m anufacturing. This equating of
shipm ent ra tio s with em ploym ent ra tio s
req u ired the assum ption that electro n ics
and nonelectronics w o rk ers produce equal
shipm ent values, and excluded the consid­
eratio n that electro n ics w o rk ers m ay be
engaged p a rt tim e on nonelectronics ship­
m ents o r vice v e rsa .

The 1947-60 annual in c re a se in m anufac­
turing output p e r m an-hour w as used as the
b est available approxim ation of the annual
in c re a se in shipm ents p e r em ployee in
electro n ics m anufacturing, despite d iffer­
ences betw een the concepts of output p er
m an-hour and shipm ents p er em ployee.
Although the re su lta n t approxim ations of
annual sh ip m en ts-p er-em p lo y ee in c re a se s
a re considered adequate fo r th e ir intended
purpose of a ssistin g in developing em ploy­
m ent e stim a te s and p ro jectio n s, they do
not re p re se n t m easu res of changes in out­
put p er w orker and should not be construed
as such.

Dividing th ese electro n ics em ploym ent
e stim a te s into the electro n ics shipm ent
estim a te s used to derive them produced a
nshipm ents p er electro n ics em ployee" value
fo r each of the 20 SIC in d u stries.
E ach in d u stry value w as w eighted acco rd ­
ing to the ratio which electro n ics shipm ents
in that in d u stry b ore to electro n ics ship­
m ents in the m ajor electro n ic product ca te ­
go ry in w hich the in d u stry would be c la s s i­
fied. The w eighted values w ere used to
obtain sh ip m en ts-p er-em p lo y ee estim ates
fo r 1958 for each of the four m ajo r product
categ o ries used in the study. These e s ti­
m ates w ere then deflated to constant I960
d o lla rs, w ith the sam e p rice indexes used
to deflate to tal shipm ents fo r each m ajor
product category. The next step was to
develop com parable e stim a te s, in the sam e
1960 d o llars, for the other y ears for which
em ploym ent estim ate s and pro jectio n s w ere
m ade- - 1959, I960, 1961, and 1970.

Table A -4 p re se n ts the sh ip m en ts-p erem ployee e stim a te s, developed by the above
p ro ced u res, for each m ajo r product c a te ­
gory for the y ears 1958, 1959, I960, 1961,
and 1970. The e stim a te s derived fo r e le c ­
tronic com ponents w ere used fo r the two
breakdow ns of com ponents, o rig in al equip­
m ent and rep lacem en t p a rts . The table also
shows to tal shipm ents for the sam e y e a rs,
by product category; these shipm ent e s ti­
m ates a re based on EIA data and appear
also in tab les 14 and A -l. 80 Dividing ship­
m ents p er em ployee into to tal shipm ents,
by product categ o ry and y ear, re su lts in
estim ates of electro n ics em ploym ent by
category and y ear. T hese em ploym ent e s ti­
m ates, the end product of th is phase of the
m ethodology, appear in table A -4.

The significant c o rre c tio n needed to con­
v e rt 1958 sh ip m en ts-p er-em p lo y ee e s ti­
m ates into estim a te s for other y ears in ­
volved adjusting for changes in shipm ents
p e r w o rker. This was done by m ultiplying
the 1958 fig u res by estim ated annual in ­
c re a s e s in shipm ents p e r w orker in each
78Electronics shipments equaled primary plus secondary

79According to Bureau of Labor Statistics estimates in U.S.
Department of Labor News Release 4698, “ Output per Man-hour
in the Private Economy in 1960,** August 18,1961, p. 2.
"Except that in table A-4, unlike tables 14 and A -l, it was
necessary to the methodology to include some double counting
in the value of total electronics shipments (see explanation in
footnote 3, table A-4).

electronic-product shipments; total shipments equaled primary
plus secondary product shipments and also miscellaneous re­
ceipts.




47

DISTRIBUTION OF EMPLOYMENT ESTI­
MATES AND PROJECTIONS BETWEEN
NONPRODUCTION AND PRODUCTION
WORKERS AND BETWEEN MEN AND
WOMEN WORKERS,BY MAJOR ELEC­
TRONIC PRODUCT CATEGORY
This m ethodology w as based on data for
the y ears 1958 to 1961 published by the
B ureau of L abor S tatistics in its E m ploy­
m ent and E arnings s e rie s , which provides
em ploym ent sta tistic s by in d u stry not only
fo r all em ployees but sep arately for p ro ­
duction w o rk ers and for wom en w o rk ers.
The data used covered the seven SIC 4digit in d u strie s p rim a rily engaged in e le c ­
tro n ic s m anufacturing. The BLS em ploy­
m ent sta tistic s do not fu rn ish inform ation
individually for each of the seven in d u stries;
som e a re available only in com bined form
(table A -5). SIC in d u strie s 3651 (radio and
telev isio n receiving sets) and 3652 (phono­
graph reco rd s) a re com bined as SIC 365.
SIC 3662 (radio and telev isio n com m unica­
tion equipm ent) is shown individually, but
SIC 3671, 3672, and 3673 (each one co v er­
ing ce rta in types of electro n tubes) a re
available only in com bined form . SIC 3679
(electronic com ponents other than tubes) is
shown individually. SIC 3671, 3672, 3673,
and 3679, com bined as SIC 367, re p re se n t
the electro n ic com ponents and a c c e sso rie s
group.
To use the BLS em ploym ent sta tistic s
fo r all em ployees, production w o rk ers, and
wom en w o rk ers, it w as n e c e ssa ry to con­
v e rt the fig u res from SIC in d u stries to the
m ajo r product categ o ries used in th is study.
This was done by assum ing that SIC 365
was the sam e as the consum er products
category, SIC 3662 the sam e as the
m ilita ry -sp a c e and in d u stria l-c o m m e rc ial
product categ o ries com bined, and SIC 367
the sam e as the electro n ic com ponents
categ o ry . B ecause of the form in which the
BLS data are available, estim ates for the
m ilita ry -sp a c e and in d u stria l-c o m m e rc ial
product categ o ries could not be derived
sep a ra te ly but only as a com bined group,
while on the o th er hand, estim ates for
com ponents could be broken down betw een
tubes and com ponents other than tubes.
The validity of these conversions is sup­
ported by the fact that, for ev ery y ear
betw een 1958 and 1961, em ploym ent in
each SIC group (365, 3662, and 367) equaled
roughly th re e -fifth s o r m ore of the em ­




ploym ent estim ated in th is study fo r the
com parable product category.
The conversion of SIC in d u stry groups
to m ajor product categ o ries m ade it p o s­
sible to apply the p ercen ts in table A -5,
which a re in te rm s of SIC groups, to the
em ploym ent estim ates of th is study, which
w ere developed by m ajor product category.
In this way, breakdow ns of nonproduction
and production and m en and w om en em ­
ploym ent w ere derived by m ajo r product
categ o ry for the y ears 1958 to 1961 (ch. 4,
tab les 15 and 18).
The data in table A -5 also p erm itted the
calculation of p e r annum ra te s of change
betw een 1958 and 1961 in nonproduction
and production and m en and wom en w orker
ra tio s. P ro jectio n s for 1970 w ere developed
on the b a sis of these p e r annum ra te s of
change. T hree sets of p ro jectio n s w ere
m ade (table A -6). P ro jectio n A assu m ed no
change in the ra tio s as they existed in 1961,
and was calculated using th ese 1961 ra tio s.
P ro jectio n C, to take the other ex trem e of
the th ree p ro jectio n s, assum ed that the p er
annum ra te of change in the pro p o rtio n s
would continue unabated to 1970, and was
calculated using that rate of change. P ro j­
ection B, the m iddle projection, assum ed
change would continue to 1970 but not so
rap id ly as betw een 1958 and 1961; the
p ro jectio n was calculated by using approx­
im ately half the p er annum rate of change
in the pro p o rtio n s betw een 1958 and 1961,
with slight v ariatio n s from product categ o ry
to product categ o ry as deem ed reaso n ab le
in the light of any special influences ex­
pected to affect em ploym ent in that c a te ­
gory.
The B p ro jectio n s a re used in th is study;
they appear in tab les 15 and 18. These
pro jectio n s w ere decided upon as the m ost
probable of the th re e , after an aly sis of the
m any v a ria b le s expected to affect the in ­
d u stry and its em ploym ent com position
during the rem aining y e a rs of the 1960*s.
It seem s unlikely that the 1960's w ill see
the rap id changes of 1958-61 e ith e r sud­
denly stop and the ra tio s rem ain as they
w ere in 1961 (P ro jectio n A), o r continue
without dim inution (P ro jectio n C). It seem s
even m ore unlikely that the 1958-61 tren d s
w ill re v e rse th em selv es during the 1960's,
o r continue at an a c c e lera te d ra te , so these
p o ssib ilities w ere not p ro jected .
48

Table A-l.

Year

Value of electronics shipments, by major product category, estimates for 1950-62 in constant 1960 dollars
and current dollars, and projections for 1970 in constant 1960 dollars

All
electronics
shipments1

Military
and space
products2

Industrial
nnri commer­
cial products

Components
Consumer
products3
Total

Used in
original
equipment

Replace­
ment
parts

1960 dollars (billions)
1950.......
1951.......
1952.......
1953.......
1954.......
1955.......
1956.......
1957.......
1958.......
1959.......
1960.......
1961.......
19625......

(*)
(*)
(*>
(*)
$5.77
6.11
7.12
8.01
8.18
9.16
9.95
10.75
(4 )

$0*67
1.35
2.53
3.15
3.09
3.13
3.74
4.20
4.43
4.72
5.10
5.49
6.10

$0.47
.58
.62
.71
.74
.84
1.03
1.33
1.38
1.59
1.85
2.20
2.45

$1.42
1.38
1.28
1.37
1.37
1.47
1.57
1.64
1.55
1.97
2.10
2.06
2.13

(*)
<*)
(*)
<*)
$1.75
1.96
2.08
2.28
2.21
2.77
3.05
3.44

(4)
(4)
(4)

(4)
(4)
(4)

(4 )
$1.18
1.29
1.30
1.44
1.39
1.89
2.15
2.44

(4 )
$0.57
.67
.78
.84
.82
.88
.90
1.00

(4)

(4)

(4)

1970.......

19.80

10.70

4.10

3.50

5.49

3.99

1.50

$1.16
1.26
1.73

$0.91
.91
1.33

$0.25
.35
.40
.50
.65
.75
.85
.90
.86
.90
.90
.95
1.00

Current dollars (billions)
1950.......
1951.......
1952.......
1953.......
1954.......
1955.......
1956.......
1957.......
1958.......
1959.......
1960.......
1961.......
19625......

$2.60
3.25
4.25
5.15
5.40
5.80
6.85
8.00
8.26
9.24
9.95
10.69
11.82

$0.50
1.05
2.05
2.65
2.70
2.80
3.45
4.10
4.42

4.74
5.10
5.49
6.22

$0.35
.45
.50
.60
.65
.75
.95
1.30
1.38
1.60
1.85
2.20
2.50

$1.50
1.40
1.30
1.40
1.40
1.50
1.60
1.70
1.60
2.00
2.10
2.05
2.10

(4)

(4)

2.01
2.20
2.28
2.44
2.33
2.83
3.05
3.27

1.36
1.45
1.43
1.54
1.47
1.93
2.15
2.32

(4)

(4)

1 Not included in this total is the value of components used in original equipment, because such components are al­
ready counted in the value of the end equipment of which they are a part.
2 Consists of expenditures for (1) military electronics research, development and procurement (exclusive of mainte­
nance work and services), except that for the years before 1961 most R&D expenditures are excluded, and (2) space elec­
tronics'research, development, and procurement.
3 Includes phonograph records. Excludes color television sets, except in projection for 1970.
* Not available.
5 Estimated.
Source: Current dollar figures are based pn estimates of the Electronic Industries Association, except that ship­
ments of military and space products include an addition estimated by the Bureau of Labor Statistics for space elec­
tronics expenditures by the civilian space agency (the National Aeronautics and Space Administration), beginning with
1958 when that agency was established.

The Bureau of Labor Statistics computed the constant dollar estimates for 1950-62 from the current dollar
figures, and d e v e l o p e d the constant dollar projections for 1970 (see text of this appendix for methodology).




49

Table A-2.

Selected data used to develop 1970 projection for military and space electronics shipments
(Billions of 1960 dollars)

Defense Department expenditures
Year1

Gross
National
Product2

(i)

Total3

Total as
percent
of GNP
(3)

(2)
__

NASA expenditures

For
electronics*

Total5

For
electronics6

M

(5)

(6)

..

D0D-NASA expenditures
for electronics

Fiscal year
basis7

(7)

(8)
$3.09
3.13
3.74
4.20
4.43
4.72
5.10
5.49
6.10
6.70
10.70

„

1954.....
1955.....
1956.....
1957......
1958.....
1959.....
1960......
1961.....
1962.....
1963.....

$449.7
459.2
467.8
459.7
490.6
504.4
514.6
546.8
569.3

$42.9
41.0
42.0
41.4
42.3
41.2
42.5
46.1
47.1

9.5
8.9
9.0
9.0
8.6
8.2
8.4
8.4
8.2

$2.9
3.3
4.0
4.3
4.5
4.9
5.1
5.6
6.0

—
$0.09
.15
.40
.73
1.27
2.20

—
$0.02
.04
.10
.19
.32
.55

$2.90
3.30
4.00
4.32
4.54
5.00
5.29
5.92
6.55

1970.....

755.1

53.0

7.0

9.0

6.00

1.50

10.50

—

—

—

—

Calendar year
basis6

1 Data in col. 1 and col. 8 are on calendar year basis. Data in all other columns are on fiscal year basis. (Fiscal
year in the Defense Department and NASA runs from July 1 to June 30. Fiscal year 1955, for example, runs from July 1,
1954, to June 30, 1955.)
2 GNP for 1960 and earlier years, in 1960 dollars, were obtained from Economic Report of the President, January 1961,
table C-2, and Economic Report of the President', January 1962, table B-l. GNP for 1961 in 1961 dollars— $521.3 billion—
was converted to a 1960 dollar estimate using a derived price deflator of 101.3. Both the GNP figure and the price de­
flator for 1961 are from Economic Indicator s, March 1962, prepared for the Joint Economic Committee by the Council of
Economic Advisers. Estimates of 1962 and 1963 GNP, in 1960. dollars, were derived by increasing the 1960 GNP figure by
4.12 percent per annum compounded— the 1960-70 per annum rate of increase indicated by the GNP projections to 1970. This
GNP projection to 1970 is from a BLS staff publication, Guide to Manpower— Challenge of the 1960s. p. 5. The BLS projec­
tion is in 1958 dollars, and was converted to 1960 dollars by using price deflators for GNP for the years 1958-60 from
the July 1961 issue of Survey of Current Business, table 65.
3 D0D expenditures for military functions. Excludes military assistance, atomic energy, civil defense, and defenserelated services. Obtained in current dollars from the Office of the Assistant Secretary of Defense (Comptroller), FAD
Report 397-Fiscal Year 1963 (1), Jan. 18, 1962; figures for fiscal year 1962 and 1963 are estimates. Current dollar
figures for fiscal year 1955 to fiscal year 1961 were converted to constant 1960 dollars by using the price index for
Federal Government purchases of goods and services for national defense (from Economic Report of the President, January
1961, tables C-l and C-2; and Economic Report of the President. January 1962, tables B-l and B-2). Current dollar esti­
mates for fiscal year 1962 and 1963 were converted to constant 1960 dollars by assuming no change in the price index
between 1961 and 1962 and a 1 percent increase between 1962 and 1963. Projection for 1970 was developed by the Bureau of
Labor Statistics; see text of this appendix for methodology.
* Consists of expenditures for military electronics research, development, and procurement (exclusive of maintenance
work and services), except that for the years before 1961 most R&D expenditures are excluded. Current dollar estimates
for fiscal year 1955-63 are from the Electronic Industries Association. They were converted to constant 1960 dollar es­
timates by using a price deflator constructed for industrial-commercial electronics products; the assumption was that
price movements are similar for military and industrial-commercial electronics. (See text of this appendix for method­
ology for construction of industrial-commercial shipments price deflator.) Projection for 1970 was developed by the
Bureau of Labor Statistics; see text of this appendix for methodology.
5 Expenditures in current dollars, actual for fiscal years 1958-61 and estimated for fiscal years 1962 and 1963, were
obtained from the Budget of the United States Government for the Fiscal Year Ending June 30. 1963. pp. 110 and 246. Con­
version to constant 1960 dollars was effected through use of the price index for Federal Government purchases of goods
and services for national defense (see footnote 3 above for the source of this index). Projection for 1970 was developed
by the BLS; see text of this appendix for methodology.
6 Consists of expenditures disbursed to electronics manufacturing establishments for space electronics research, de­
velopment, and procurement. Figures were developed by the BIS and equal roughly one-fourth of the figures in column 5;
see text of this appendix for methodology.
7 Represents sum of cols. 4 and 6.
6 Converted from fiscal year basis by the BIS; see text of this appendix for methodology.
Source: Developed by U.S. Department of Labor, Bureau of Labor Statistics. See table footnotes for sources and method­
ology.




50

Table A-3.

Selected data used to develop 1970 projections for industrial-commercial and consumer electronics shipments
[Dollar figures in billions of I960 dollars]
Series

National income accounts:1
Gross national product ....
Personal consumption
expenditures............
For furniture and house­
hold equipment........
For radio and TV re­
ceivers, records, and
musical instruments....
Gross private domestic
investment............ ..
Producers' durable
equipment.............

1950

1951

1952

1953

1954

$362.3

$392.0

$406.8

$425.5

$416.8

238.7

240.8

247.0

258.9

262.3

282.0

15.1

1955

1956

1957

1958

1959

1960

$467.8

$459.7

$490.6

$504.4

291.3

299.1

302.0

319.3

328.9

17.3

18.0

17.6

17.5

19.0

18.8

$449.7 $459.2

15.1

14.2

14.3

15.4

2.0

1.9

2.2

2.4

2.7

2.9

3.0

3.1

3.1

3.5

3.6

66.7

69.2

60.7

61.4

58.9

74.7

74.3

69.8

58.2

72.9

72.4

25.9

26.7

26.5

27.4

25.3

27.4

30.3

29.9

23.6

25.9

27.5

Other series:
Expenditures for new plant
and equipment2............

28.2

32.1

33.0

34.8

32.6

34.0

39.1

38.8

31.2

32.7

35.7

Federal Reserve Board index
of industrial production
(1957=100)3...............

74.5

80.8

83.8

90.8

85.4

96.0

99.3

100.0

92.9

104.9

108.0

Number of primary families—
husband and wife present
(thousands)4 ................

34,075

34,378

35,138

35,560

37,043

37,711

37,967

38,420

(5 )

21.2

23.6

24.9

28.0

38.9

38.3

42.1

Kilowatt-hours of electricity
produced by or sold to in­
dustrial and commercial
establishments (monthly
average, in billions)6 .......

35,875 h 36,266

29.3

34.7

37.7

45.4

1 National income accounts are from Economic Report of the President, January 1961, table C-2, and Economic Report of
the President, January 1962, table B-l, except for personal consumption expenditures for (1) furniture and household
equipment, and (2) radio and TV receivers, records, and musical instruments, which were separately derived. Current
dollar personal consumption expenditures for furniture and household equipment are available in Economic Report of the
President. January 1962, table B-9; they were converted to constant 1960 dollars using price deflators available, for
1950-56, in U.S. Department of Commerce, U.S. Income and Output (A Supplement to the Survey of Current Business), table
VII-13, and, for 1957-60, from Survey of Current Business, July 1961, table 70. The price deflators were in 1954- dol­
lars and were converted to 1960 dollars. Current dollar personal consumption expenditures for radio and TV receivers,
records, and musical instruments were obtained, for 1950-57, from U.S. Income and Output, op. cit. table II-4, and, for
1957-60, from Survey of Current Business, July 1961, table 15. They were converted to constant 1960 dollars on the
basis of unpublished data of the Bureau of Labor Statistics.
GNP is made up of 4 major components: Personal consumption expenditures, gross private domestic investment, net ex­
ports of goods and services, and government purchases of goods and services. Data for only the first 2 of these 4 major
components are shown in the table, the other 2 components being considered not relevant to the projections for this
study.
2 Derived by deflating to constant 1960 dollars current dollar figures for new plant and equipment expenditures
available in Economic Report of-the President, January 1962, table B-34. The deflation was made with the price index
used to deflate producers' durable equipment (a subcomponent of gross private domestic investment, in the national in­
come accounts). This price index was computed for this study by dividing current dollar figures for producers' durable
equipment by constant 1960 dollar figures, both sets of figures being available in Economic Report of the President,
January 1961, tables C-l and C-2.
3 From Economic Report of the President, January 1962, table B-32.
4 From U.S. Bureau of the Census, Current Population Reports, Population Characteristics, Series P-20, No. 94, re­
leased Aug. 24, 1959, table 4. Data are for March or April of each year.
5 Not available.
6 Calculated from U.S. Department of Commerce, Business Statistics, 1961 biennial edition, A Supplement to the Survey
of Current Business, p. 126.
Source: Developed by U.S. Department of Labor, Bureau of Labor Statistics. See table footnotes for sources and
methodology.




51

Table A-4* Electronics shipments and shipments per employee (in constant 1960 dollars), and employment,
by product category, estimates for 1958-61 and projections for 1970

All
electronics
shipments

Military
and space
products

Industrial
and
commercial
products

Consumer
products

Value of shipments per
employee (1960
dollars):
1958.................
1959.................
1960.................
1961.................
1970.................

$15,694
16,028
16,483
16,961
21,937

$18,037
18,423
18,837
19,399
23,327

$15,991
16,426
16,908
17,460
21,984

$21,320
21,913
22,509
23,224
29,362

$10,770
11,237
11,698
12,286
17,162

Value of shipments
(billions of 1960
dollars):
1958.................
1959.................
1960.................
1961.................
1970.................

2 9.57
11.05
12.10
13.19
23.79

4.43
4.72
5.10
5.49
10.70

1.38
1.59
1.85
2.20
4.10

1.55
1.97
2.10
2.06
3.50

Employment (thousands):
1958.................
1959.................
1960.................
1961.................
1970.................

609.8
689.4
734.1
777.7
1,084.5

245.6
256.2
270.7
283.0
458.7

86.3
96.8
109.4
126.0
186.5

72.7
89.9
93.3
88.7
119.2

Item and year

Components
Total

Original
equipment

Beplacement
parts

C1 )
<*)
C1 )
(x )
(x )

(X)
(x)
(x )
t1 )
(X )

2,21
2.77
3.05
3.44
5.49

$1.39
1.89
2.15
2.44
3.99

$0.82
.88
.90
1.00
1.50

205.2
246.5
260.7
280.0
319.9

129.5
168.1
183.8
198.6
232.5

75.7
78.4
76.9
81.4
87.4

1 Same as shipments-per-employee estimates for all components.
2 Figures in this column exceed comparable figures in tables 14 and A-l to the extent that they add in all components
shipments, including those of original equipment components even though these are already included in end product ship­
ments. This double counting was necessary to derive shipments-per-employee estimates for the industry as a whole.
Note: Because of rounding, sums of individual items may not equal totals.
Source: Developed by U.S. Department of Labor, Bureau of Labor Statistics. See text of this appendix for methodology.




52

Table A-5. D istrib u tio n of employment between nonproduction and production workers,
and women workers, in selected electro n ics manufacturing in d u strie s, 1958-61
Industry, and type and
sex of worker1

Percent of industry
Number of workers
employment
(thousands)
1958 1959 1960 19612 1958 1959 1960 19612
4-77.9 554.9 583.0 594.8 100.0 100.0 100.0 100.0
165.2 192.9 213.5 225.2 34.6 34.8 36.6 37.9
312.7 362.0 369.5 369.6 65.4 65.2 63.4 62.1
210.9 245.5 255.4 256.5 44.1 44.2 43.8 43.1

SIC 365, 3662, 367: t o ta l .............
Nonproduction workers.................
Production workers.......................
Women workers................. .................
SIC 365: Radio and TV receiving
s e t s ...................................................... 104.4 114.4 111.5 113.2 100.0 100.0 100.0 100.0
Nonproduction workers.................
27.3 28.8 29.3 30.3 26.1 25.2 26.3 26.8
Production workers........................
77.1 85.6 82.2 82.9 73.9 74.8 73.7 73.2
Women workers..................................
51.4- 57.6 55.7 54.9 49.2 50.3 50.0 48.5
SIC 3662: Radio and TV communi­
cation equipm ent............................ 194.6. 229.2 246.3 254.4 100.0 100.0 100.0 100.0
Nonproduction workers............. .... 92.9 112.4 123.4 133.2 47.7 49.0 50.1 52.4
Production workers........................ 101.7 116.8 122.9 121.2 52.3 51.0 49.9 47.6
Women w o rk e rs................................
59.1 67.4 72.2 75.0 30.4 29.4 29.3 29.5
SIC 367: E lectronic components
and accessories• • • • • • • • • ............. 178.9 211.3 225.2 227.2 100.0 100.0 100.0 100.0
Nonproduction workers.................
45.0 51.7 60.8 61.7 25.2 24.5 27.0 27.2
Production workers........................ 133.9 159.6 164.4 165.5 74.8 75.5 73.0 72.8
Women workers......................
100.4 120.5 127.5 126.6 56.1 57.0 56.6 55.7
SIC 3671-3: Electron tu b es...........
69.5 76.4 75.6 72.0 100.0 100.0 100.0 100.0
Nonproduction workers.................
17.9 20.3 21.7 21.6 25.8 26.6 28.7 30.0
Production workers........................
51.6 56.1 53.9 50.4 74.2 73.4 71.3 70.0
Women workers..................................
39.9 42.7 40.5 36.2 57.4 55.9 . 53.6 50.3
SIC 3679: Components other than
tubes3...............................................
109.4 134.9 149.6 155.2 100.0 100.0 100.0 100.0
Nonproduction workers.................
27.1 31.4 39.1 40.2 24.8 23.3 26.1 25.9
Production workers........................
82.3 103.5 110.5 115.0 75.2 76.7 73.9 74.1
Women workers..................................
60.5 77.7 87.0 90.4 55.3 57.6 58.2 58.2
1 For d efin itio n of "production worker," as used by the Bureau of Labor S ta tis tic s in
co llectin g the data in th is ta b le , see tab le 15, footnote 1. Women workers are included in
both the nonproduction and production worker figures •
2 Prelim inary.
3 Includes, according to Standard In d u stria l C lassificatio n Manual. 1957 ed itio n , spe­
c ia lty re sisto rs fo r electro n ic end products; so lid s ta te electro n ic devices and sim ilar
devices; inductors, electro n ic transform ers, and capacitors; and other electro n ic compo­
nents, not elsewhere c la ssifie d .
Note: Because of rounding, s u m s of individual items may not equal to ta ls .
Source: U .S . D epartm ent of L ab o r, B ureau of L abor S ta tistic s, Em ploym ent and
E arnings S tatistics for the United S tates. 1909-60 (B ulletin 1312, 1961J, pp. 196-201
(for data for 1958-60), and Em ploym ent and E arn in g s, F e b ru a ry 1962, tables B -2 and
B -4 (for data for 196l).




53

Table A-6. Nonproduction and production workers, and women workers, in electro n ics
m anufacturing, by product category, 3 projections for 1970
Product category, and
type and sex of
worker1

P rojections fo r 1970
Percent of employment
Number of workers
(thousands)
in product category
B
B
c
A
c
A
1,084.5 1,084.5 1,084.5 100*0
100.0
100.0
456.1
516.0
54.6
591.6
47.6
42.1
568.3
57.9
628.2
52.4
45.4
492.7
427.9
39.0
39.5
38.6
422.7
418.4

T otal electro n ics employment
Nonproduction workers.........
Production workers...............
Women workers....................
M ilitary-space and industrial-com m ercial products..
100.0
100.0
645.2
645.2
645.2 100.0
52.4
Nonproduction workers.........
338.1
386.5
59.9
69.5
448.4
Production workers...............
47.6
196.8
40.1
30.5
307.1
258.7
Women workers..........................
190.3
181.9
173.6
29.5
26.9
28.2
Consumer products............ .. .. .
100.0
100.0
119.2
119.2
119.2 100.0
Nonproduction workers.........
31.9
34.6
33.3
26.8
27.9
29.0
Production workers.............
84.6
71.0
87.3
85.9
73.2
72.1
Women workers..........................
57.8
55.3
47.5
48.5
56.6
46.4
319.9
100.0
100.0
Components....................................
319.9
319.9 100.0
86.1
26.9
33.9
Nonproduction workers • • • • •
108.6
30.1
96.2
Production workers...............
211.3
69.9
73.1
66.1
233.8
223.7
Women workers..........................
179.8
189.5
57.6
184.2
56.2
59.2
Tubes...............................................
80.0
80.0
80.0 100.0
100.0
100.0
Nonproduction workers.........
24.0
30.0
37.8
30.0
37.5
47.2
Production workers...............
56.0
50.0
70.0
52.8
62.5
42.2
33.0
Women workers • ........................
50.3
26.6
40.2
41.3
33.2
Other than tubes2......................
239.9
239.9
239.9 100.0
100.0
100.0
25.9
Nonproduction workers.........
29.5
70.8
27.6
62.1
66.2
Production workers...............
177.8
169.1
70.5
74.1
72.4
173.7
Women workers..........................
139.6
63.0
162.9
67.9
151.2
58.2
1 For d e fin itio n of "production worker," as used in co llectin g the BLS data upon which
these projections are based, see tab le 15, footnote 1. Women workers are included in both
the nonproduction and production worker fig u res.
2 For types of components included in th is category, see tab le A-5, footnote 3.
Note: Because of rounding, sums of individual items may not equal to ta ls .
Source: Developed by U.S. Department of Labor, Bureau of Labor S ta tis tic s . See te x t of
th is appendix fo r methodology.




54

APPENDIX B.
SELECTED BIBLIOGRAPHY
I. Government Publications
A. U.S. Department of Labor, Bureau of Labor Statistics
••Defense Manpower Requirements in Electronics Production/* Manpower Report No, 12 (1952)
‘•Electronics Manufacturing Occupations,** Occupational Outlook Handbook. 1961 edition. Bulletin 1300
(1961)pp. 622-632.
Employment and Earnings Statistics for the United States, 1909-60, Bulletin 1312 (1961 ),pp. 196-202.
Employment and Earnings (monthly publication) .
Employment Outlook in Electronics Manufacturing, Bulletin 1072 (1952).
••Expansion in Electronics Employment,** Monthly Labor Review. February 1952, pp. 151-155.
“ Indexes of Wholesale Prices, by Group and Subgroup of Commodities,** Monthly Labor Review, November
1961, table D-3.
Output Per Man-Hour in the Private Economy in 1960, News Release USDL-4698, Aug. 18,1961.
••The Effect of the Defense Program on Employment Outlook in Electronics Manufacturing,** Supplement
No. 15 to the Occupational Outlook Handbook, May 1951.
Wholesale Prices and Price Indexes: For 1954-56, Bulletin 1214 (1957), p. 364; for 1957, Bulletin
1235 (1958). p. 165; for 1958. Bulletin 1257 (1959), p. 277; and for 1959, Bulletin 1295 (1961), pp. 226,
228, and 245.
B. U.S. Department of Commerce
Bureau of the Census:
. ••Home-Type Radio Receivers and Television Sets, Automobile Radios, Phonographs, and Record
Player Attachments and Office, Computing, and Accounting Machines,** Current Industrial Reports,
Annual Summary Reports, Series M 36 and M 35 R.
••Households and Families, by Type: 1950 to 1959,** Current Population Reports, Series P-20, No.
94, Aug. 24.1999.
••Illustrative Projections of the Number of Households and Families: 1960 to 1980,** Current
Population Reports, Series P-20, No. 90, Dec. 29, 1958, p. 1.
U.S, Census of Manufactures: 1939. Radio, Radio Tubes and Phonographs Industry, Vol. II, Pt. 2,
table 2, p. 388.
U.S. Census of Manufactures: 1947. Statistics by Industry, Vol. II, table 1, p. 739.
U.S. Census of Manufactures: 1958, Industry Statistics, Vol. 11,Pt. 2, Major Groups 29-39.



55

Business and Defense Services Administration:
Electronic Components: Production and Related Data, 1952*59. October I960,
"Electronics ,ft The U.S. Industrial Outlook for 1962, pp. 177-201.
Microwave Components: Production and Related Data. 1958. March 1960.
Semiconductors: U.S. Production and Trade. February 1961.
Office of Business Economics:
Business Statistics: 1961 edition, supplement to the Survey of Current Business, p. 126.
Survey of Current Business. July 1961, tables 7,15, 65, and 70.
U.S. Income and Output, supplement to the Survey of Current Business, November 1958, tables H-4
and VII-13.
C. U.S. Department of Defense
Order of Magnitude Data on Comparative Expenditures by Functional Title as if Fiscal Year 1963 Budget
Structure had Been Adopted Circa 1948 (Office of the Assistant Secretary of Defense, Comptroller),
Fiscal Analysis Division Report 397-Fiscal Year 1963 (1), Jan. 18,1962.
Prime Contract Awards for Fiscal Year 1962 Compared by State and Region. News Release No. 1569
(Office of Public Affairs), Sept. 29,1962.
The Changing Patterns of Defense Procurement (Office of the Secretary of Defense), June 1962.
D. U.S. Executive Office of the President
Bureau of the Budget:
Special Analysis of Federal Research and Development Program in the 1962 Budget, January 1961.
Standard Industrial Classification Manual, 1957 edition: and supplement published in 1958.
Standard Industrial Classification Manual, 1945 edition, Vol. I, Manufacturing Industries: Pt. I, Titles
and Descriptions of Industries, 1945; Pt. 2, Alphabetic Index, 1947.
The 1962 Budget Review, Autumn 1961.
Other Executive Office publications:
Economic Indicators, prepared for the Joint Economic Committee of the 87th Cong., 2d sess.
(Council of Economic Advisers), March 1962.
Economic Report of the President, transmitted to the Congress January 1961, table C -l, p. 127;
table C-2, p. 128; and table C-30, p. 162.
Economic Report of the President, transmitted to the Congress January 1962, table B -l, p. 207;
table B-2, p. 208; and table B-32, p. 245.
E. The Congress of the United States
Coordination of Information on Current Federal Research and Development Projects in the Field of Elec­
tronics, prepared for the Committee on Government Operations and its Subcommittee on Reorganization
and International Organization (U.S. Senate, 87th Cong., 1st sess.. Sept. 20, 1961).



56

Department of Defense Appropriations for 1962, Hearings before the Subcommittee on Appropriations
(U.S. Senate, 87th Cong., 1st sess. on H.R. 7851, Apr. 18-July 26, 1961).
Impact of Automation on Employment, Hearings before the Subcommittee on Unemployment and the
Impact of Automation of the Committee on Education and Labor (House of Representatives, 87th Cong.,
1st sess., Mar. 8 and 29 and Apr. 18,1961).
Independent Offices Appropriations for 1963, Hearings before the Subcommittee of Independent Offices of
the Committee on Appropriations (House of Representatives, 87th Cong., 2d sess., Pt. 3, Apr. 16, 1962),
pp. 406-499.
F. National Science Foundation
•‘Funds for Performance of Research and Development in American Industry, I960.0 Reviews of Data on
Research and Development. No. 30, NSF 61-51, September 1961.
Nonprofit Organizations—Expenditures and Manpower--1957, NSF 61-37, Washington, D.C., p. 31.
Scientific and Technical Personnel in Industry. 1960. NSF 61-75, Washington, D.C., 1961, table A-l, p. 20.
Scientific Research and Other Programs of Private Foundations, 1960, Preliminary Report No. 35, Wash­
ington, D.C., August 1962.
The Long-Range Demand for Scientific and Technical Personnel—A Methodological Study, NSF 61-65,
Washington, D.C., 1961.
G. Other Government Publications
A Study of Small Business in the Electronics Industry (Small Business Administration), 1962.
Annual Procurement Report, Fiscal Year 1961 (National Aeronautics and Space Administration).
Annual Reports of the Federal Communications Commission to the Congress of the United States:
Second Annual Report (Fiscal Year 1936); Seventh Annual Report (Fiscal Year 1941); 22nd Annual Report
(Fiscal Year 1956); and 27th Annual Report (Fiscal Year 1961).
CAA Statistical Handbook of Aviation. 1955 edition, p. 31; 1956 edition, pp. 27-28 (Civil Aeronautics
Administration).
FAA Statistical Handbook of Aviation, 1961 edition (Federal Aviation Agency), p. 35.
The Budget of the United States Government for the Fiscal Year Ending June 30, 1963, pp. 110 and 246.
11. Books and Reports
Electronic Industries 1962 Yearbook, Electronic Industries Association, Washington, D. C., September 1962.
Electronic Industry 1960 Fact Book, Electronic Industries Association, Washington, D. C., 1960.
Electronics, by James M. Hund, Harvard University Press, Cambridge, Mass., 1959.
Electronics—1961 by Merrill Lynch, Pierce, Fenner and Smith, Inc., New York, N. Y., 1961.
Manpower Requirements in Electronics^ Manufacturing—Outlook to 1964 in the New York Metropolitan Area,
(New York State Department of Labor, Division of Employment, Bureau of Research and Statistics), New York,
December 1960.
Markets of the Sixties, by the Editors of Fortune, Harper and Bros., New York, N.Y., 1960.



57

National Defense and Southern California, 1961-1970, a statement of policy by the Southern California CED
Associates together with a research report by George A. Steiner* Southern California CED Associates* Los
Angeles, Calif., December 1961.
The California Economy—1947-1980* by Robert K. Arnold and others, Stanford Research Institute* Menlo Park*
Calif., 1960.
The Changing Structure of the U.S. Defense Market* by Murray L. Weidenbaum* published in Defense Mar­
keting in the 1960‘s , American Management Association, Inc., New York, N. Y.t pp. 7-31.
The Electronics Industry in New England to 1970* by Albert H. Rubenstein and Victor L. Andrews* 1970
projection No. 4* Federal Reserve Bank of Boston, December 1959.
‘•The Small Electronics Firm,” Research for Industry* Vol. 13, No. 6, Stanford Research Institute* Menlo
Park, Calif.,November-December 1961, pp. 10-12.
III. Periodical Articles
Automation* The Penton Publishing Co., Cleveland, Ohio.
‘•Automatic Diode Tester Improves Production Yields,” July 1961, pp. 67-69.
“ Survey Report and Forecast on Automation Trends,” July 1961* pp. 35-50.
Business Automation* O.A. Business Publications* Elmhurst, 111.
•‘Projections *62,” January 1962, pp. 20ff.
“Computer Census as of December 1961,” January 1962, p. 39.
Business Week* McGraw-Hill Publishing Co*, New York*
“Cheaper TV Set,” Apr. 7* 1962, pp* 134ff.
“ Computers Start to Run the Plants,” Nov. 5, 1960* pp. 50ff.
“Gaining Despite the Handicaps,” June 16. 1962* pp. 144-150.
“ Midwest is the Big Loser,” June 30, 1962, pp. 38,40.
“ Next Step Beyond Transistor,” Oct. 28, 1961* pp* 45ff.
“ Space,” Aug. 19, 1961* pp. 75-96.
“ The New Shape of Electronics,” Apr. 14* 1962, pp. 160-182.
Data, Queensmith Associates* Washington, D.C.
“ A Look at the NASA Budget Requests,” March 1962, pp. 19-23.
“Calculated Predictions and an Analysis of the Next Ten Years in Defense Spending,“ September 1961,
pp. 42-46.
“ Defense R&D: A Major Growth Market,” September 1962, pp. 28-29*
“ Military Markets,” September 1961, pp. 38-41*
“Summarizing Defense Market Figures for Interpretation and Forecast,” June 1962, pp. 32-34.
“ The Aerospace Market,” October 1961, pp. 20-26.



58

Electronic Age, Radio Corporation of America, New York*
•'Electronics Earns its Wings/* Summer 1961, pp.7-10.
“ Electronics in Space,** Autumn 1961, pp. 11-14.
••The Boom in Microwave,** Spring 1961, pp. 26-29,
Electronic News, Fairchild Publications, Inc., New York.
•‘Increased Effort Seen in Microminiaturization,** August 20, 1962, p. 99.
“ New High Speed Tube Tester,’* Dec. 25, 1961, p. 1.
“ Over 30 Stations on Air in Stereo,** Nov. 27, 1961, p. 28.
Electronics, McGraw-Hill Publishing Co., New York.
“ Electronic Applications of Ultrasonic Welding,** June 29, 1962, pp. 112ff.
“ Microminiaturization,** Nov. 25, 1960, pp. 78-108.
“ Our Growing Markets,** Jan. 5, 1962, pp. 42-72.
“ Our Industry Today and Tomorrow,** Jan. 6,1961, pp. 73-104.
“ Production Machinery for the Electronics Industry,** Oct. 24, 1958, pp. 31, 73-84.
“ Production Methods for Welded Circuits,** Feb. 1962, pp. 66,68.
Electronics World. Ziff-Davis Publishing Co., New York.
“Automated Testing Men & Machines,** June 1962, pp. 52ff.
“ Electronics 20 Years Ago,** April 1960, pp. 40ff.
“ Technicians in the Computer Industry,** June 1962, pp. 50-51, 84.
“ The Citizen’s Band and Its Uses,** September 1960, pp. 54ff.
“ The Technician: His Role in Industry,** March 1962, pp. 25-27.
Fortune, Time, New York.
“ Electronics Goes Microminiature,** August 1962, pp. 99ff.
“ Hitching the Economy to the Infinite,** June 1962, pp. 123ff.
“ Laying the Great Cable in Space,** July 1961, pp. 156ff.
“ The Astonishing Computers,** June 1957, pp. 136ff.
“ The Battle of the Components,** May 1957, pp. 135ff.
“ The Coming Shakeout in Electronics,** August 1960, pp. 126ff.
“ The Next Generation of Computers,** March 1959, pp. 132ff.
“ The War of the Computers,** October 1959, pp. 128ff.
“ What We Know About Solids is Getting Solid,** November 1961, pp. 150ff.



59

Missiles and Rockets, American Aviation Publications* Inc.* Washington, D.C,
‘•Lear Mass-Produces Microcircuits,” Jan. 29, 1962, pp. 34-35.
“ The $50-Billion Space Push,** Nov. 27, 1961, pp. 46-49.
“ $ 22-Billion Market Through 1970,“ Sept. 17, 1962, pp. 22-24.
“ Zeus Resistors Made at Rate of One Each 3 Sec.,” July 10,1961, pp. 22-24.
The New York Times
“ Automatic Hands: Companies Step Up Use of Machines to Handle Tricky Assembly Jobs,” Oct. 25,
1960, p. 1.
“ Automation Shown in Microcircuitry,’* Jan. 17, 1962, p. 48.
“ Billions Awarded as U.S. Plans Shot at Moon,” Jan. 8, 1962, p. 118.
“ Electronics Climbs to 5th Place on Nation’s Industrial Ladder,” Jan. 9,1961, pp. 41, 62.
Other Periodicals
“ A Growing Field. • • Solid Networks,” Electronic Industries. Chilton Company, Philadelphia, Pa., May
1961, pp. 120-122.
“ Defense Spending: A Fourth Revision,” The Conference Board Business Record, National Industrial
Conference Board, Incorporated, New York, November 1961, pp. 5-6.
“ Electronics and Allied Industries,” Industrial Marketing (Directory Issue), Advertising Publications,
Incorporated, Chicago, 111., June 23, 1961, pp. 141-161.
“ Electronic Trends,” Ground Support Equipment, Sheffield Publishing Company, Incorporated, Wash­
ington, D.C., August/September 1961, pp. 21-25.
“ Engineers of Progress,” Bell Telephone Magazine, American Telephone and Telegraph Co., Spring
1959, pp. 37-44.
“ Environmental Control in Production and Maintenance of Electronic Components,” Military Systems
Design, Instruments Publishing Co., Pittsburgh, Pa., September-October 1961, pp. 34-39.
“ How To Forecast Defense Expenditures,” California Management Review, University of California, Los
Angeles, Calif., Summer 1960, pp. 84-99.
“ Marvels in Miniature,” Dun’s Review and Modern Industry, Dun and Bradstreet Publications Corp.,
New York, April 1962, pp. 39-41.
“Microelectronics—A Staff Survey,” Electronic Equipment Engineering, Sulton Publishing Co., Inc.,
White Plains, N.Y., June 1961, pp. 50-52.
“ Numerical Contouring Gets its Second Wind,” Machinery, The Industrial Press, New York, Decem­
ber 1961, pp. 113-120.
“ Numerical Control by Punched Tape,” Instruments and Control Systems, The Instruments Publishing
Co., Inc., Pittsburgh, Pa., September 1961, pp. 1643-1646.
“ Small Worlds to Conquer,” Skyline, North American Aviation, Inc., Los Angeles, Calif., Vol. 20, No. 3,
1962, pp. 21-27.
“ The Defense Industry as a Business,” May 1961, Signal, Armed Forces Communications and Elec­
tronics Association, Washington, D.C., pp. 24ff.



60

“ The Electronics Industry and Texas,** Texas Business Review, University of Texas, Austin, Tex.,
August-September 1960, Vol. XXXIV, No. 8-9, pp. 1-6.
“ The Electronics Market," Electronics Buyers* Guide. McGraw-Hill Publishing Co., New York, July
20, 1961, pp. R1-R12.
“ The ‘Shortage* of Engineers,** Review of Economics and Statistics. Harvard University Press, Cam­
bridge, Mass., August 1961, pp. 251-256.
“ Why Research Spending Soars,** Challenge. Institute of Economic Affairs, New York University, New
York, January 1961, pp. 42-45.




61
☆ U S GOVERNMENT PRINTING OFFICE : 1963 O - 708-384