Electronics

Operation profile

The electronics assembly industry manufactures both finished electronic devices and electronic sub-assemblies for brand-name manufacturers and distributors of electronic equipment, as well as for manufacturers in many other industries who install electronic devices into their own products.

The representative operation modeled is an electronics sub-assembly plant. As detailed in the following table, this operation is characterized by:

  • Significant land, building, and equipment requirements
  • A workforce weighted heavily toward technical employees, plus a mix of skilled and unskilled staff
  • Modest energy requirements
  • Relatively high costs for materials, reflecting the significant use of components and sub-assemblies
  • Modest in-house R&D activities.

The business is assumed to operate as a stand-alone profit center.
 

Summary of operating parameters

Industry: Electronics

Operation: Electronics assembly

Facilities requirements
   Owned industrial site - acres (28,328 m2)
7
   Size of factory - ft2 (11,148 m2)
120,000

Other initial investment requirements
   Machinery and equipment - US $'000
$18,000
   Office equipment - US $'000
$270
   R&D equipment - US $'000
$750
   Inventory - US $'000
$5,000
   Equity financing - % of project costs
60%

Workforce
   Management
7
   Sales and administration
12
   Production/non-dedicated product development
      - Professional, technical
52
      - Operators
20
      - Unskilled laborers
5
   Other
4
 
Total employees
100

Energy requirements
   Electricity: monthly consumption demand - kWh
225,000
   Gas: monthly consumption - CCF (15,864 m3)
5,600

Other annual operating characteristics
   Sales at full production - US $'000
$45,500
   Materials and other direct costs - % of sales
48%
   Other operating costs - % of sales
4%
   Investment in tax-eligible R&D - % of sales
2.8%

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Electronics
Operation: Electronics assembly
North America – lowest cost cities
Country and CityIndex & Rank1
CASt. John's, NL88.73
 Fredericton, NB89.34
 Moncton, NB89.45
 Winnipeg, MB89.86
 Charlottetown, PE89.97
MXMonterrey, NL84.91
 Mexico City, DF85.52
USShreveport, LA95.034
 Baton Rouge, LA95.435
 New Orleans, LA95.837
 Montgomery, AL95.838
 Savannah, GA95.939
 Youngstown, OH96.240
 Omaha, NE96.241
 Lexington, KY96.242
 Mobile, AL96.243
 Little Rock, AR96.344
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide91.424
 Brisbane92.828
 Melbourne91.926
 Sydney92.427
FRMarseille93.029
 Paris93.530
GEBerlin94.031
 Frankfurt94.532
ITMilan91.323
 Rome91.625
JPOsaka95.536
 Tokyo96.755
NLAmsterdam91.220
 Rotterdam91.219
UKLondon94.833
 Manchester90.916
1  Rank among 111 featured cities.

 
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