Spring 2006 Issue - Special Report
Manufacturing 2006
High-Tech Angst
Posted: October 15, 2008
Who had a brighter future in manufacturing in 1994 than people engaged in the production of computers and computer related products? Well, lots of folk, as things turned out.
The sector that includes computers had reported revenues of $7.1 billion in 2004, up 45 percent from $4.9 billion in 1994. But jobs in the sector dropped by 16 percent during that period, 25,971 to 21,947, and the decline included a 30 percent plunge from peak employment in 1999.
Chris Thomas, an economic analyst for the Washington State Employment Security Department, researched the sector for a report published by the state in 2003. He said the job side of the sector was hit hard by outsourcing to cheaper labor markets and increased productivity at home.
It remains an important sector because of the number of jobs it still provides and wages are high. In 2003, he said, payroll for the sector averaged $62,654 per worker. But job security is not what it seemed back in 1994.
“There were a lot of improvements in technology,” Thomas said. “It is a sector where you can really increase your output while lowering employment.”
