Manufacture of electronics & electrical machinery

Definition

The sector covers a group of three 2-digit divisions of NACE Rev. 1: The manufacture of office machinery and computers (DL 30); the manufacture of electrical machinery and apparatus (DL 31); and the manufacture of radio, television and communication equipment and apparatus (NACE Rev.1 32). The sector accounts for approximately 11% of the total production in the EU manufacturing sector. The development and production of ICT hardware, which is a heavy user of ICT by itself, is also included in this sector.

 

NACE
Rev. 1
Business activity
30 Manufacture of office machinery and computers
30.01 Manufacture of office machinery
30.02 Manufacture of computers and other information processing equipment
31 Manufacture of electrical machinery and apparatus n.e.c.
31.1 Manufacture of electric motors, generators and transformers
31.2 Manufacture of electricity distribution and control apparatus
32 Manufacture of radio, television and communication equipment and apparatus
32.1 Manufacture of electronic valves, tubes and other electronic components
32.2 Manufacture of television and radio transmitters and apparatus for line telephony
32.3 Manufacture of television and radio receivers, sound or video recording or reproducing apparatus and associated goods

 

Main reasons for selection

  • High potential for e-business in the sector: The electronics industry in particular is very suitable for e-business because of the high degree of standardisation of products, globalisation of production, and specialisation of firms along the value chain. In addition, this sub-sector is naturally IT-savvy and predestined to be open to experiment with new technology-driven management solutions. Consequently, the entire sector is among the early adopters and already advanced in the usage of e-business. Within the sector, the electronics industry is clearly more advanced than the electrical engineering industry.
  • SMEs more advanced than in other sectors: Large firms lead in some e-business applications, but SMEs are not falling behind as markedly as in other sectors. This can be attributed to the high degree of IT knowledge and experience that naturally exists in this sector, even in smaller firms. Those SMEs that purchase online procure even larger proportions of their total purchasing volume over the Internet than large firms. The sector could be a model for SMEs from other sectors in some respects.
  • Model sector for exploiting e-business opportunities: In contrast to other industry sectors, where a "battle of power" and a systematic divergence of interests could be observed between different stages of the value chain (for example between System Integrators and OEMs in the automotive industry), the advantages of e-business are clearly recognised and solutions are jointly promoted by all parts of the value chain in the electronics industry. Thus the sector could potentially serve as a model how e-business can increase the efficiency and competitiveness with all stakeholders in the value chain profiting.
  • Dynamic development calls for continuous monitoring: The time-series figures available from the new survey (March 2003) reveal an intact and dynamic upward trend for e-business usage in this sector. Companies' plans indicate that online sales, B2B marketplaces, CMS, CRM, and website usage could gain further momentum in the near future, which calls for a continued monitoring in the future.