Computer Industry Indicators2009

• Shipments• New Orders• Unfilled Orders• Inventories• Employment• Investment• Exports• Imports

Computer Hardware Industry Trends2007-2009

58.5

46.5

66.565.762.2

55.7

69.368

54.155.2

63.563.6

01020304050607080

Shipments New Orders Unfilled Orders Inventories

2007 2008 2009

$ Billions

Source: Census Bureau, M3Group: CRP: Computers and Related Products

Computer Hardware Industry Trends

• U.S.-based computer industry shipments dropped 6.5 percent from $68 billion in 2008 to $63.6 billion in 2009. With the continued weakness in the global economy, customers cutback spending for computers and related products.

• The value of new orders fell 8 percent, while unfilled orders dropped 1 percent when compared with 2008. Inventories declined 13 percent in 2009 as companies worked to minimize inventories in a sluggish market.

Industry Shipmentsby Category

• Computer systems production declined 7 percent to $44.4 billion in 2009 following a 7 increase in 2008. Demand for computer equipment was postponed in both the business and consumer segments.

• Storage equipment shipments

fell 11 percent, while peripheral equipment shipments dipped 2 percent below the 2008 levels.

44.647.7

44.4

12.5 12.612.4

8.6 7.7 6.80

10

20

30

40

50

60

2007 2008 2009

Computers PeripheralsStorage

$ Billions

Source: Census Bureau, M3

• New orders are orders received and filled during the reporting period and orders received for future delivery.

• Unfilled orders are equal to unfilled orders at the beginning of the period plus net new orders received less shipments. This includes orders that have not yet passed through the sales account and been reported as sales.

Computers and Related ProductsNew Orders/Unfilled Orders

Definitions

Computers and Related ProductsNew Orders/Unfilled Orders

• New orders declined 8 percent or by $5.8 billion to $63.5 billion in 2009 when compared to 2008.

• Meanwhile, unfilled orders dipped 1 percent to $55.2 billion in 2009.

63.569.366.5

55.7 55.246.5

01020304050607080

2007 2008 2009

New Orders Unfilled Orders

$Billions

Source: Census, M3

Computer Industry Indicators Inventories2007-2009

20.123.8 23.2

12.6

17.618

18.320.8

20.4

0

5

10

15

20

25

30

35

2007 2008 2009

Computers Storage Peripherals

$ Billions

Source: Census, M3

Computer Industry IndicatorsTotal Employment

2002-2009

166

183.2

186.2

196.2

205.1

210

224

250

0 50 100 150 200 250 300

2009

2008

2007

2006

2005

2004

2003

2002

NAICS 3341

Source: Bureau of Labor Statistics

Thousands of Workers

• Employment continued its downward trend dropping another 9.4 percent, or 17 thousand workers in 2009.

• Production workers fell 5 percent from 122.1 thousand to 116 thousand reflecting companies’ continuing efforts to contain cost.

• The continuation of job cuts can be attributed to a number of factors including company downsizing, industry consolidation, and downturns in the global economy.

183.2166

116122.1

0

50

100

150

200

2008 2009

Total Production Workers

Thousands

Computer Industry IndicatorsTotal Employment/Production Workers

Source: Bureau of Labor Statistics

46.146.846.242.639.636.532.931.2

7586.789.284.9

78.980.277.679.7

0102030405060708090

100

2002 2003 2004 2005 2006 2007 2008 2009

Consumer Business

$ Billions

Source: Bureau of Economic Analysis

•Personal consumption expenditures reclassified as personal computers and peripheral equipment to better reflect the activity of the industry.

Computer Industry Indicators Business Investment and Consumer Spending*

Computers and Peripheral Equipment

Computer Industry IndicatorsU.S. Trade: 2007-2009

27.8

101.6

-73.8

26.7

95.6

-68.9

20.1

90.1

-70

-80-60-40-20

020406080

100120

2007 2008 2009

Exports Imports Trade Deficit

$ Billions

Source: U.S. Department of Commerce

U.S. Computer Trade2008-2009

• Computer product exports tumbled 25 percent to $20.1 billion in 2009, following a 4 percent drop in 2008. Demand remains sluggish in most export markets.– The slowdown in worldwide economic activity continues to take a

toll on demand for computer products.

• Imports dropped 6 percent to $90.1 billion during 2009, signaling the slow turnaround in U.S. demand for computer products. – China, the primary supplier, sent $49.5 billion in computer

products during 2009, but the value declined 3 percent when compared to 2008. China accounted for 55 percent of the U.S. computer product import total.

U.S. Computer Exports by Region2009

2,426

5,7735,415

4,876

1,576

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Canada LatinAmerica

Asia Pacific EU-27 ROW

$Millions

Source: U.S. Department of Commerce, Census Bureau

U.S. Computer Imports by Region2009

4451,2162,95510,329

75,153

010,00020,00030,00040,00050,00060,00070,00080,000

Asia Pacific LatinAmerica

EU-27 Canada ROW

Source: U.S. Department of Commerce, Census Bureau

$ Millions

Top Five Destinations – U.S. Computer ExportsTop Five Suppliers – U.S. Computer Imports

• Exports –2009 ($ Millions)

• Canada2,426• Mexico 2,284• Netherlands 1,283• China 1,029• United Kingdom 984

• Imports –2009 ($ Millions)

• China 49,466• Malaysia 8,173• Mexico 7,691• Japan 5,445• Thailand 3,326

Source: U.S. Department of Commerce

U.S. Computer TradeGrowth Rates/Declines– Top Five Countries

• Exports – 2009 (Percent)

• Canada - 27.1• Mexico - 35.5• Netherlands - 25.8• China - 21.3• United Kingdom - 28.3

• Imports – 2009 (Percent)

• China - 2.6• Malaysia - 28.3• Mexico + 23.3• Japan - 10.3• Thailand - 16.1

Source: U.S. Department of Commerce