Who's in and who's out in the electronics manufacturers job market?

Citation

(1999), "Who's in and who's out in the electronics manufacturers job market?", Soldering & Surface Mount Technology, Vol. 11 No. 1. https://doi.org/10.1108/ssmt.1999.21911aab.019

Who's in and who's out in the electronics manufacturers job market?

Who's in and who's out in the electronics manufacturers job market?

Keywords Electronics industry, Plimsoll

How full will your Christmas stocking be this year? Well, if you work at one of the 271 companies in the electronics manufacturers industry that are rated financially strong and are growing in terms of sales, you are in luck. In this last year alone, these 271 companies added 4,235 people to their workforce. These companies are the cream of the crop in their field and could possibly increase salaries next year, which would make any of their employees cheer!

Overall, 15 percent of people in the electronics manufacturers industry changed jobs last year; 62,701 people either started at a new company or left a company. Out of these, 24,009 people found new jobs at 415 companies. In fact, 86 percent or 20,620 of these people were employed by companies that were either growing or rated as financially strong or good; 283 companies either showed some sales growth or a good financial rating, hence the need for more people.

Here are five companies who are rated strong or good and are growing in sales while increasing jobs last year:

1. 1.

   Trident Microsystems Ltd

2. 2.

   Quadrant Meter Co Ltd

3. 3.

   Huber + Suhner (UK) Ltd

4. 4.

   Aculab plc

5. 5.

   Eyietel Ltd

The electronics manufacturers industry as a whole currently employs approximately 415,485 people. Yet, the industry does not seem to be employing many more people than last year. Looking at the changes in the number of people a company employs, 5 percent of companies employ the same number of people as last year.

Conversely, 351 companies reduced their number of employees last year. That is approximately 38,692 jobs cut. Of this band of companies, 254 were found to be in the caution or danger rating of the Plimsoll model or showing a decline in sales growth and in total reduced approximately 25,577 out of their number of employees.

Companies must keep their total salary bill in line with the financial strength and sales growth to stay in business. The average total salary bill as a percentage of sales was 27 percent. That is, 27 percent of a company's sales pay for their employees' salaries. The average person in the industry earns £18,900 a year. This is 5 percent higher than last year's average salary of £18,000. This may look nice in your Christmas stocking, but these companies must keep their salary bill in line with the sales growth or face downsizing in the future.

Next year, it is likely that a significant number of people will again change jobs to other companies in the industry in light of a company's need to respond to financial and commercial change. Indeed, it is estimated that if those companies, either showing a decline in sales or under financial constraints, were to get their salary bills as a proportion of sales in line with the industry average of 27 percent, as many as 10,278 more jobs would need to go. If history repeats itself, which it seems likely to do, then these people will need to find new jobs, almost certainly within the industry.

If all these people are changing jobs, just who is "cheery" and who is "scary"? From the latest Plimsoll Portfolio Analysis ­ Electronics Manufacturers, 2nd edition, 2,201 companies are analysed to assess their financial strength through the Plimsoll model. This model examines the companies' last four years of audited accounts and uses key financial indicators: immediate liquidity, gearing, profitability, working capital and trading stability to provide an overall financial health check. As the model is standard for every company, it is easy to distinguish the strong from the weak and make rapid inter-company comparisons.

Reports covering the full 2,201 companies can be purchased directly from Plimsoll Publishing Ltd for a main report costing £305 or supplement report costing £205. Contact Jennifer Ovington at +44 (0) 1642 257800.

Editor's note: Soldering & Surface Mount Technology readers are entitled to 5 percent discount on Plimsoll products.