Off-Shoring US Electronics

By 1979, Personal Computers were available and showed promise for industrial application and home use. Businesses already had their data on mainframe computers and personal computers were being designed to interface with the mainframe. PC components were being developed to expand memory, processing speed and portability.

In 1979, US electronics companies were exporting electronic devices across the globe. The foreign countries we exported to were requiring US companies to move manufacturing to their countries and were beginning to lower their corporate taxes.  Europe imposed ISO-9000 manufacturing process standards as a trade barrier in 1987. US companies were required to adhere to these standards in order to continue exporting.

In the 1980s, the US military was developing stealth technology, communications satellites, radar jammers and unmanned aircraft. The Reagan “build-up” was underway. Telephony was also being redesigned and added to the multiple design cycles to create a “boom” in electronics in the US.

In 1986, I left Hayes Microcomputer Products to join Electromagnetic Sciences to join the Reagan build-up surge.

In 1987, I joined the American Electronics Association Board in Atlanta.  Atlanta Metro was home to 50 electronics companies and all were AEA members. The board included a cross section of companies.

With the passage of NAFTA and US implementation of UN Agenda 21 in 1993, the AEA was shifting its focus from US companies to emphasize globalization. I remained on the board until 1995.

I was asked to open a private consulting practice in 1993 by 6 electronics companies. That practice eventually included 46 companies, mostly electronics manufacturing firms.

US electronics companies were off-shoring circuit board manufacturing to lower costs. This required that sustaining engineering be performed by other countries. Components were routinely obsoleted and this required redesign around components that were still being sold. The savings for off-shoring was 50%. Companies knew they would need to allow foreign engineers access to their closely guarded design documentation.

Norb Leahy, Dunwoody GA Tea Party Leader