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Electrical Equipment and Appliances White Paper ELECTRICAL EQUIPMENT AND APPLIANCES WHITE PAPER Center for Economic Research in Tennessee (CERT) Authored by John Patten, Research Analyst Jeremy Stiles, Research Manager Sally Avery, Director of the Center for Economic Research in Tennessee (CERT) CENTER FOR ECONOMIC RESEARCH IN TENNESSEE (CERT) Tennessee Department of Economic and Community Development 312 Rosa L. Parks Avenue Nashville, Tennessee 37243 Phone: (615) 741-1888 TNECD.com For questions, please contact Sally Avery, Director of the Center for Economic Research in Tennessee (CERT) [email protected], 615-979-6064 June 2018 Contents Introduction ........................................................................................................................................................ 2 Industries ............................................................................................................................................................. 5 Lighting Fixture Manufacturing .................................................................................................................... 5 Electric Lamp Bulb and Part Manufacturing ............................................................................................... 8 Appliance Manufacturing ............................................................................................................................ 10 Electrical Equipment Manufacturing ......................................................................................................... 13 Battery Manufacturing ................................................................................................................................. 16 Exports ............................................................................................................................................................... 19 Recent Projects ................................................................................................................................................. 20 June 2018 1 Introduction The appliances industry cluster is one of Tennessee’s strongest traded clusters. Companies in this industry manufacture a wide variety of electrical devices and components, including lamps, lighting, household appliances, motors, transformers, switchboards, and batteries. Currently, appliances companies in Tennessee employ 17,753 workers, the fourth highest level of employment in the nation.1 Since 2012, employment grew by 11.2%, significantly higher than the regional or national growth rates. This job creation (1,789 net new jobs) was the fourth largest increase in employment in the nation. Major household appliance manufacturing made the largest employment gains in Tennessee during this time, adding 2,216 net new jobs. Power, distribution, and specialty transformer manufacturing achieved a 50.1% increase in employment. Tennessee’s employment concentration for these industries (3.13) is the second highest in the nation behind Wisconsin. Tennessee has the highest employment concentration in the nation for appliance manufacturing. Average employee earnings for this cluster in Tennessee are $87,297. Average employee earnings in lighting equipment manufacturing ($114,257) rank first nationally.2 Tennessee also ranks second nationally for average employee earnings in lighting fixture manufacturing as well as switchboard manufacturing. In 2017, Tennessee appliance companies earned $1.4 billion. Household appliance manufacturers accounted for 11.3% of all cluster revenue. Average 2017 Business Location 2017 NAICS Industry Employee Jobs Locations Quotient Earnings Earnings Lighting Fixture Manufacturing Residential Electric Lighting Fixture 335121 63 10 0.33 $50,057 $3,783,681 Manufacturing Commercial, Industrial, and Institutional 335122 1,249 12 2.63 $111,106 $128,637,976 Electric Lighting Fixture Manufacturing 335129 Other Lighting Equipment Manufacturing 70 3 0.43 $114,257 $8,662,714 Electric Lamp Bulb Manufacturing 335110 Electric Lamp Bulb and Part Manufacturing 37 2 0.24 $100,811 $3,791,414 Appliances Manufacturing 335210 Small Electrical Appliance Manufacturing 1,369 10 5.92 $72,411 $91,642,416 335220 Major Household Appliance Manufacturing 8,770 23 8.34 $74,476 $601,464,089 Electrical Equipment Manufacturing Power, Distribution, and Specialty 335311 2,044 15 3.92 $86,276 $162,259,814 Transformer Manufacturing 335312 Motor and Generator Manufacturing 773 13 1.09 $77,341 $55,358,072 Switchgear and Switchboard Apparatus 335313 2,348 32 3.53 $141,401 $307,258,818 Manufacturing 335314 Relay and Industrial Control Manufacturing 116 9 0.13 $65,182 $8,166,054 Battery Manufacturing 335911 Storage Battery Manufacturing 237 5 0.66 $74,662 $16,750,266 335912 Primary Battery Manufacturing 678 7 2.67 $74,580 $47,203,932 Total 17,753 141 3.13 $87,297 $1,434,979,247 1 Industry estimates were obtained from Economic Modeling Specialist’s 2018.2 data run. 2 Average employee earnings, which include wages as well as supplemental benefits, are adjusted for cost-of-living. June 2018 2 Between 2017 and 2022, Tennessee is predicted to continue growing employment at a rate greater than the regional and national averages. The three states that currently outrank Tennessee in employment – Ohio, Wisconsin, and California – are expected to each lose 600 jobs or more during this time. Tennessee has 141 companies in this cluster. Switchgear and switchboard apparatus manufacturing accounts for the most significant share of business locations in this cluster (32 total establishments), followed by major household appliance manufacturing (23). Overall, Tennessee’s appliances industries have an establishment size of 126 workers on average, which is the fourth highest average of any US state. Establishment size varies substantially between industries. Employees per Establishment (Industry Averages) 450 400 350 300 250 200 150 100 Tennessee 50 0 United States Workforce Tennessee’s appliances cluster encompasses 168 occupations. Some of these occupations are unique to certain industries, but significant overlaps exist between industries. Manufacturers in this cluster employ workers with similar skill sets, creating a large, experienced labor force from which the entire cluster can draw. 2017 Median Hourly NAICS Industry Jobs Earnings Management Occupations 11-1021 General and Operations Managers 45,541 $40.97 11-3051 Industrial Production Managers 5,040 $37.90 Architecture and Engineering Occupations 17-2071 Electrical Engineers 2,490 $41.41 17-2112 Industrial Engineers 6,522 $36.93 17-2141 Mechanical Engineers 4,163 $41.11 17-3023 Electrical and Electronics Engineering Technicians 2,395 $26.25 17-3026 Industrial Engineering Technicians 4,196 $20.93 Sales and Related Occupations Sales Representatives, Wholesale and Manufacturing, Except Technical and 41-4012 21,669 $25.45 Scientific Products June 2018 3 2017 Median Hourly NAICS Industry Jobs Earnings Office and Administrative Support Occupations 43-4051 Customer Service Representatives 60,264 $14.21 43-5061 Production, Planning, and Expediting Clerks 8,100 $22.25 43-5071 Shipping, Receiving, and Traffic Clerks 17,486 $14.26 Installation, Maintenance, and Repair Occupations 49-9071 Maintenance and Repair Workers, General 32,759 $17.53 Production Occupations 51-1011 First-Line Supervisors of Production and Operating Workers 16,342 $25.22 51-2021 Coil Winders, Tapers, and Finishers 600 $18.12 51-2022 Electrical and Electronic Equipment Assemblers 3,689 $14.03 51-2023 Electromechanical Equipment Assemblers 1,027 $16.87 51-2092 Team Assemblers 63,430 $14.51 51-2099 Assemblers and Fabricators, All Other 5,482 $13.75 Cutting, Punching, and Press Machine Setters, Operators, and Tenders, Metal and 51-4031 6,457 $14.50 Plastic 51-4081 Multiple Machine Tool Setters, Operators, and Tenders, Metal and Plastic 3,862 $14.92 51-4121 Welders, Cutters, Solderers, and Brazers 6,772 $17.74 51-9061 Inspectors, Testers, Sorters, Samplers, and Weighers 13,833 $15.77 51-9198 Helpers--Production Workers 20,323 $11.49 Transportation and Material Moving Occupations 53-7051 Industrial Truck and Tractor Operators 17,863 $14.28 53-7062 Laborers and Freight, Stock, and Material Movers, Hand 95,411 $12.41 Demographics of the labor force in these industries differ from the overall Tennessee labor force. The concentration of workers aged 45- 64 is higher in appliances industries (50.6%) than the overall workforce (42.9%). Gender demographics in this cluster also differ from the overall workforce. 66.1% of workers in the appliances industries are male. Only 33.9% are female. Across all industries, male and females account for roughly the same share of the workforce (50.9 and 49.1%, respectively). June 2018 4 Caucasians account for a lower share of appliances employment (77.0%) than the overall labor force (74.7%). African-Americans comprise a slightly higher percentage of employment in appliances industries (20.0%) than across all industries (18.0%). Tennessee’s post-secondary institutions offer 223 programs related to appliance industry occupations. In 2016, these institutions produced 24,555 graduates with the skills necessary to pursue a career in these industries. Industries Lighting Fixture Manufacturing With 25 total businesses and 1,382 employees, this industry is a key component of Tennessee’s appliances cluster. Businesses in this industry manufacture residential lighting fixtures as well as lighting fixtures for commercial, industrial, and institutional settings. This industry also includes establishments that produce similar types
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