How the Economy Impacts Your Business
by Shawn DuBravac, CFA
Current Economic Outlook
CEA's forecast for the economy based on current economic conditions.
Trade Fuels $1.4 Trillion CE Industry
Fueled by international trade, the consumer electronics (CE) industry is poised to generate $1.4 trillion in direct business activity in 2008, while directly employing more than 4.4 million Americans. Burgeoning international trade is helping grow the sector, driving 14 percent of the CE industry's total output and 16 percent of its total employment. The CE industry also spurs billions of dollars in additional indirect economic benefits in the form of industry purchasing and consumer spending in related industries, supporting millions of additional jobs. The CE industry will directly and indirectly produce $2.6 trillion in output, contributing $1.3 trillion to the economy in 2008 and supporting 15.4 million jobs in related industries. Read the report.
One Fifth of U.S. Households Will Spend Stimulus Package Funds on Electronics
One out of every five U.S. households will spend a portion of their economic stimulus rebate check on consumer electronics, totaling some $5 billion, according to new research by CEA. Before plans for the stimulus package were announced, CEA predicted wholesale revenues of $171.6 billion for the consumer electronics industry in 2008. Read the report.
Broadband in America: Access, Use and Outlook
This paper examines broadband in America from the eyes of the US consumer, focusing on the micro underpinnings of broadband adoption - what individuals and households are doing and how they perceive the broadband landscape. By doing so, this study is able to shed light on consumer perceptions of the following questions:
- Who has broadband, who doesn't, and why?
- What compels a household to subscribe to broadband at home?
- Does speed matter?
- How do consumers use the Internet at home and how does having a broadband connection impact usage?
- What is the inclination of households towards broadband adoption into the future?
- What is the outlook for consumer broadband in the US?
How Stable is Consumer Spending on Consumer Technologies?
Since January 1960, monthly year-over-year nominal consumer spending on consumer technologies has averaged 8.8 percent – with a standard deviation of 6.2 percent. Read more. (pdf)
How Paramount is the Fourth Quarter for Retailers?
While it is true the fourth quarter represents the largest percentage of total year retail sales compared to the first through third quarters – it’s only marginally more than both the second and third quarters. The second and third quarters each represent just slightly more than 25 percent of total annual retail sales. With just under 27 percent of total annual retail sales, the fourth quarter gains all of its proportionate advantage at the expense of first quarter weakness – which is just under 23 percent of total annual retail sales. Read more. (pdf)
The Current State of US Employment for Consumer Electronics Industry
The consumer electronics (CE) industry is a robust $125 billion-plus industry in the United States influencing all aspects of the American economy – not least of which is primary employment. The CE industry does more than just influence how employees in all industries do their jobs. It is directly responsible for nearly two million employees spread across the entire spectrum of value creation – from research and development to design, manufacturing, retail and content creation.
This report issued by CEA in March 2006 provides an overview of the CE related employment and growth, measurement of productivity, wage earnings and more.
View the report. (pdf)
Other ArticlesRole of China in Competitiveness of U.S. CE Industry (pdf)
CEA’s resident economist, Shawn DuBravac, CFA welcomes your thoughts and concerns on how the economy is impacting your business. You can reach Shawn at 703-907-4305.
