As with many economic sectors in the United States, employment levels in the AT industry rise and fall with market demand. Overall, however, compelling demographics -- principally increases in aging populations in the United States, Europe, Asia, and other parts of the world — have helped keep the U.S. AT industry’s employment base growing. On average, the number of employees per firm increased more than seven percent from 1997 through 1999.
For this same period, overall employment in AT companies participating in the survey climbed from 18,953 in 1997 to 20,31513 in 1999. Most of this growth (see Table 8) occurred in manufacturing, assembly and marketing/sales/administration. These three sectors account for more than 85 percent of total industry employment.
In contrast, engineers, scientists and technicians represent a small portion of the U.S. AT workforce, about 10 percent of the total AT workforce. But as a proportion of the AT workforce, between 1997 and 1999, this group increased its presence — by one percent overall — within the employment ranks of the AT companies participating in the survey.
Healthcare professionals are even a smaller component of the U.S. AT industry, accounting for less than 2.5 percent of the workforce in 1999. Total employment of healthcare professionals at AT companies participating in the survey grew from 442 in 1997 to 497 in 1999.
The greatest employment growth for 1997-99 among AT survey participants occurred in product assembly where 408 jobs were added, an increase of 10 percent. There was also substantial job growth — 359 positions–in marketing, sales, and administration during this time.
Employment levels in manufacturing were subject to mild swings over this three-year period. Survey participants reported a total manufacturing workforce of 7,392 for 1997, which
represented 39 percent of the entire AT workforce at respondent companies. In 1998, that number fell to 7,178 before jumping to 7,643 in 1999 (37.7 percent of the AT workforce at respondent companies).
The changes seen in manufacturing employment in the AT industry appear to be driven by market factors and shifts in manufacturing practices. The shifts in employment levels might have been deeper were it not for management practices employed by some AT companies.
For many of the AT businesses surveyed, manufacturing and marketing-related responsibilities are distributed over a core group of personnel, with individual employees performing tasks in one or more of the job categories defined in the survey. This multi-tasking approach allows firms to retain key personnel in market downturns and to run their businesses with smaller staffs.
Other AT manufacturers, survey respondents indicate, use subcontractors for manufacturing and assembly activities. So-called ‘job-shops’ offer flexible and cost-effective alternatives for businesses that cannot justify maintaining their own manufacturing capability. It also enables some companies to handle market cycles more effectively while maintaining corporate focus on critical product development and marketing activities.
13 Employment figures cited vary slightly from those cited in Table 9 because of irregularities in reporting by survey participants.