Definitely, the world is now in the digital age. People from all over the planet are using computers and other gadgets to do a lot of things – from connecting with others to shopping and even paying their bills.
Because of this, various computer brands such as HP and Dell are investing a lot in the manufacture and distribution of different computing units and their spare parts. In fact, the computer industry in the United States earned about 11 billion dollars by the end of 2018, an increase of about 3.5% from the figures of the previous year. This is a huge amount of money, so it’s safe to say that the industry is a major driver of the American economy.
However, together with this increase in industry value is the number of players within the industry. This means that the producers of computers and electronic parts from Online Components and other distributors have decreased, which also resulted in a noticeable decline in the number of people employed by the industry.
In 2019, the outlook for the computer industry is still quite positive, but it will be far more sensitive than the previous years, and it will be dependent on two factors: international penetration and consumer confidence.
There is fiercer international competition
The manufacture of computers and the smaller components that comprise them requires the skill and expertise of a good number of technicians and professionals. If these workers are all hired in the US and given US-level pay and benefits, the cost for the manufacturer will surely be high.
In their efforts to be more efficient, manufacturers have started to take advantage of cheaper labor costs by hiring workers offshore, especially in developing countries such as the Philippines and other countries in Southeast Asia. While this setup benefits the manufacturers, this takes away numerous jobs from the local economy, affecting the industry as a whole.
Aside from this, more and more American users are expected to buy foreign-produced computers and parts simply because they are cheaper. Because of this change in market behavior, more and more foreign companies like those from China are expected to explore the US market more.
There is an increase in consumer confidence
Consumer confidence simply means the buyers’ confidence in the current state of their economy. Do they trust that it’s going to be OK for a long time? Do they see it crumbling in the next few years?
The answers to such questions, unsurprisingly, have a serious impact on people's buying behavior. The more positive the outlook is, the more favorable their buying behaviors will be.
Fortunately, analysts project that consumer confidence is expected to increase in the United States, which is really good news for the computer industry in the country.
While the money that an industry brings in is an important indicator of its current health, there is still a need to look at the factors that might affect it. The sustainability of the industry, and the health of a country's economy, depends largely on these factors.